What is a crypto wallet and which one should a beginner choose in 2025?

The world of cryptocurrencies is developing rapidly, and more and more people are interested in digital assets as a way to save or earn money. But before you buy your first cryptocurrency, it is worth understanding what a crypto wallet is and why you cannot do without it. It is not just a place to store coins, but a key element of security and control over your own funds.

A cryptocurrency wallet is a tool that allows you to store, receive, and send cryptocurrency. It can be compared to a digital safe that can be accessed only by the owner of a private key. And although exchanges also allow you to hold funds, you only get real control over your assets when you use your own wallet. It is especially important to choose the right cryptocurrency wallet at the start. Newcomers often store their tokens on an exchange without realising the risks: account hacking, technical failures, or even blocking. Instead, creating a personal wallet is the first step towards full control over your assets and safe participation in the crypto market.

In this article, we will look at the main types of crypto wallets, help you understand how to create a crypto wallet, which ones are best for beginners, and how to make a choice that combines convenience and security.

Basic definition and principle of cryptocurrency wallet operation

To make full use of cryptocurrencies, you need to have a special tool for storing and managing digital assets. And a crypto wallet is just such a tool.

In simple terms, a cryptocurrency wallet is an application or device that allows you to store cryptographic key pairs:

• public key (address) – an analogue of a bank account number that can be used to receive funds;
• private key – a secret code that gives access to cryptocurrency and allows you to dispose of it.

Whoever owns the private key owns the assets. Therefore, the most important rule is to never share your private key or seed phrase with third parties or keep it in the public domain. Cryptocurrency wallets do not physically store coins – they only provide access to records in the blockchain. When you receive or send cryptocurrency, it is reflected in the distributed ledger (blockchain), and the wallet only signs the transaction with the private key.

There are different types of wallets – hot and cold, online and hardware – but the essence is the same: they allow you to interact with the blockchain and manage cryptocurrency without intermediaries. That’s why it’s so important to understand how a wallet works from the very beginning and learn how to use it properly. This is a basic step towards financial freedom in the cryptocurrency world.

Types of cryptocurrency wallets

There are two main types of cryptocurrency wallets: hot and cold. Their main difference lies in the way private keys are stored: online or offline. Each type has its own advantages and limitations, so it is important to choose the one that best suits your goals, usage style, and level of experience.

Hot wallets (online, mobile, desktop)

An online crypto wallet is the most common option among beginners. It is connected to the Internet and allows you to quickly interact with cryptocurrency: store, send, receive, connect to decentralised applications (dApps) or exchanges. Hot wallets come in the form of mobile applications, browser extensions, or desktop programmes.

Advantages of hot wallets:

• convenience and quick access;
• easy installation and intuitive interface;
• the ability to easily connect to DeFi services and NFT platforms;
• free creation.

Cons:

• vulnerability to attacks, phishing, or device hacking;
• dependence on the Internet;
• vulnerability to seed phrase loss.

Hot wallets are popular:

• Trust Wallet is a convenient mobile wallet that supports multiple tokens.
• MetaMask is ideal for interacting with Ethereum, DeFi, and Web3 applications.
• Exodus is a cross-platform wallet with a beautiful design and a built-in exchanger.

Cold wallets (offline storage)

A cold wallet is a way to store cryptocurrency without an internet connection. Private keys are kept in isolation, which significantly reduces the risk of hacking. This type of wallet is considered the most reliable for long-term storage of large amounts.

There are two main types:

• Paper wallets are physical sheets with printed keys or QR codes. Simple, but the risk of loss or damage is high.
• A hardware crypto wallet is a separate device (similar to a flash drive) that stores keys offline and is used to sign transactions.

Hardware wallets are popular:

• Ledger (Nano X, Nano S Plus) is one of the most famous brands that supports thousands of tokens.
• Trezor is a simple and safe option, suitable even for beginners.
• SafePal is a low-cost option for those looking for a basic level of protection with mobile integration.

Advantages of cold wallets:

• maximum security and protection against online threats;
• are suitable for long-term storage;
• full control over assets.

Cons:

• higher cost (especially for hardware devices);
• less convenient for frequent transactions;
• are more difficult to set up for beginners.

📌 If you plan to actively trade, it is convenient to start with a hot wallet. But when it comes to large amounts or long-term storage, a cold wallet is the best choice to maintain security.

How to create a crypto wallet: step-by-step instructions for a beginner

Creating your own cryptocurrency wallet is the first step towards managing your digital assets independently. The good news is that opening a crypto wallet is free, and the process takes only a few minutes.

Below is a basic guide based on the most popular services, such as Trust Wallet (mobile wallet) and MetaMask (browser extension):

📱 Option 1: Trust Wallet mobile wallet

1. Download the application. Go to the App Store or Google Play and search for Trust Wallet. Download and install the application. You can also go to the official website and select the link to the required resource from there.
2. Create a new wallet. Select the “Create a new wallet” option. The system will generate a seed phrase (12 words) for you – save it in a safe place. Don’t take a photo, save it in notes or the cloud – write it down manually on paper.
3. Confirmation of the phrase. To verify, you will need to repeat the seed phrase in the correct order.
4. It’s done! Now you have a full-fledged online crypto wallet ready to receive or send cryptocurrency.

🧩 Option 2: MetaMask browser wallet

1. Go to the official MetaMask website and install the extension for your browser (Chrome, Firefox, Brave, etc.).
2. Click Create wallet. Set a strong password to protect access to the extension.
3. Get the seed phrase. Save it offline – this is the only way to restore access to your wallet if you lose your device or password.
4. Confirm the seed phrase and complete the setup
5. Your wallet is ready!MetaMask automatically connects to the Ethereum network, but you can manually add other networks, such as BNB Smart Chain or Polygon.

📌 Secure storage of the seed phrase is critical. Whoever owns this phrase has full control over your wallet. If you lose it, it will be impossible to regain access.

For more advanced users, there are also options to import wallets, set up additional networks, and integrate with hardware devices. But at the initial stage, this is enough to start using cryptocurrencies confidently and safely.

How to open a hardware wallet and connect it to the platform

A hardware crypto wallet is one of the safest ways to store cryptocurrency. Unlike hot wallets, which are constantly connected to the Internet, hardware wallets store private keys offline, which minimises the risk of hacking or phishing attacks. The most popular brands for 2025 are Ledger, Trezor, and SafePal.

🛠 Step-by-step process of setting up Ledger / Trezor

1. Purchase your device from a trusted seller. Always buy your wallet on official websites or from certified resellers. Avoid the secondary market – there is a risk of getting an already compromised device.
2. Connect your wallet to your computer or smartphone. For Ledger, use the Ledger Live app; for Trezor, use the Trezor Suite.
3. Create a new wallet. When you first start the device, you will be prompted to create a seed phrase (usually 12 or 24 words). Save it offline, preferably in multiple copies.
4. Set a PIN code. This is an additional layer of security: the device will require a PIN every time you switch it on.
5. Connect your wallet to a cryptocurrency platform or app.Through official software, you can interact with exchanges, DeFi services, NFT platforms, and manage assets.

🔐 Tips for safe use

• Do not store the seed phrase electronically or in the cloud.
• Avoid connecting to unfamiliar sites without checking them out.
• If your wallet requires a firmware update, do it only through the official app.

⚙️ Overview of hardware wallet features

• Multicurrency support – one device can store Bitcoin, Ethereum, USDT, Solana, BNB, ADA, and hundreds of other tokens.
• Integration with Web3 – the ability to securely connect to dApps via Metamask, WalletConnect, etc.
• 2FA and PINs – physical access to the device + PIN provides an additional layer of security.

📌 A hardware crypto wallet is an ideal solution for those who store large amounts of cryptocurrency or plan long-term investments. This is an expense that quickly pays off in security and peace of mind.

How to top up a crypto wallet

Topping up a cryptocurrency wallet is a key step in starting to work with digital assets. The replenishment process depends on the type of wallet: hot (connected to the Internet) or cold (offline storage). Let us consider all available options for both types, including the use of cryptocurrency exchanges.

Top up hot wallets

Hot wallets are software solutions that are always connected to the internet, providing quick access to your assets. Examples include mobile and desktop applications, as well as web wallets.

• Through a cryptocurrency exchange:
  • Create an account on an exchange: Sign up with a trusted exchange such as Binance, Coinbase, or Ukraine’s Kuna.
  • Purchase cryptocurrency: Deposit fiat currency and purchase the desired cryptocurrency.
  • Withdrawal to a hot wallet:
    • Copy the address of your wallet: In the wallet app, find and copy the address for the respective cryptocurrency.
    • Initiate a transfer: On the exchange, select the withdrawal option, enter your wallet address, and confirm the transaction. Pay attention to fees and minimum withdrawal amounts.
• Through cryptocurrency swap services:
  • Choosing an exchanger: Use services such as BestChange to find reliable exchangers that support the direction “hryvnia → selected cryptocurrency”.
  • Making an exchange:
    • Enter the address of your wallet: When applying for an exchange, enter the address of the hot wallet to receive the cryptocurrency.
    • Make the payment: Transfer the required amount in UAH to the exchanger’s details and wait for the cryptocurrency to be credited to your wallet.

Top up cold wallets

Cold wallets provide increased security by storing private keys offline. They include hardware devices (e.g. Ledger Nano X, SafePal S1) and paper wallets.

1. Through a cryptocurrency exchange:

• Purchase cryptocurrency: As with hot wallets, purchase the cryptocurrency on the exchange of your choice.
• Withdrawal to a cold wallet:
  • Connect the hardware wallet to your computer: Use the official software to access the wallet.
  • Copy the public address: Find and copy the address to receive the cryptocurrency.
  • Initiate the transfer: On the exchange, select the withdrawal option, enter the cold wallet address, and confirm the transaction.

2. Through cryptocurrency swap services:

• Choosing an exchanger: Find a reliable exchanger that supports the exchange of hryvnia for the chosen cryptocurrency.
• Making an exchange:
  • Enter the address of your cold wallet: Enter the public address of your hardware or paper wallet when applying.
  • Make the payment: Transfer UAH to the exchanger’s details and wait for the cryptocurrency to be credited to your cold wallet.

Important notes:

• Address verification: Always carefully check that your wallet address is correct before making a transaction.
• Fees and limits: Check out the fees and minimum withdrawal amounts for your chosen exchange or exchanger.
• Security: Keep your private keys and passphrases in a safe place. Never share them with third parties.

By using these methods, you will be able to efficiently fund both hot and cold cryptocurrency wallets, ensuring the safety and accessibility of your digital assets.

What to look for when choosing a crypto wallet

When choosing a cryptocurrency wallet, you should consider more than just the convenience or popularity of a particular app. Your wallet is your main tool for managing digital assets, so it’s important to consider all the key criteria, especially if you’re just starting out in crypto.

🔐 Safety comes first

Security is the most important parameter. In the cryptocurrency world, there is no support service that will return your funds if you lose your seed phrase or fall for scammers.

Rate the following elements:

• Whether private keys are stored only on the user’s device.Secure wallets do not share keys with the network.
• The seed phrase is the basis of access recovery. It is important that the wallet allows you to create and securely store it offline.
• Protection against phishing.Some wallets warn about potentially malicious sites or check the URL before connecting.
• Additional layers of protection.For example, PINs, biometrics, or hardware device support.

📌 If you are planning to store cryptocurrency for a long time or hold a large amount, consider a cold wallet as your main solution.

💡 Interface and usability

Especially for beginners, it is important that the wallet is intuitive. The absence of confusing menus, clear “receive” and “send” buttons, the ability to copy an address or scan a QR code make it much easier to use.

Also pay attention to the availability of Ukrainian, English or your preferred language, a dark theme, and easy synchronisation with other devices.

💱 Support for coins, DeFi and NFT

Versatility is another important factor. One wallet can support thousands of tokens, while another can support only one blockchain.

Check it out:

• Which blockchains are supported (for example, Ethereum, BNB Smart Chain, Polygon, Solana).
• Is it possible to work with tokens of ERC-20, BEP-20, SPL, etc.
• Whether there is integration with DeFi applications (for example, Uniswap, PancakeSwap) or NFT marketplaces.
• Whether the connection to Web3 via WalletConnect is supported.

For those who want to use a cryptocurrency wallet not only for storage but also for participation in DeFi or NFT, this is a mandatory checkpoint.

💰 Commissions, reputation, compatibility with exchanges

• Most wallets do not charge additional fees themselves, but may have fixed settings for network fees (especially for Ethereum). Some allow you to manually set the commission level.
• Before using a new wallet, be sure to check out the reviews, community activity, project launch date, and open or closed source code.
• Compatibility with exchanges.If you plan to regularly transfer crypto from an exchange to a wallet and back, check whether there is automatic detection of the right network, correct token support, and a simple interface for sending.

🧠 Conclusion: choosing a wallet is not only a matter of functionality, but also of security. Before deciding which crypto wallet to choose, define your goals: active trading, investing, participating in DeFi, or just storing. And only then choose the best option.

TOP crypto wallets of 2025

Choosing a cryptocurrency wallet is like choosing a personal bank, a safe deposit box, and an interface for daily use at the same time. That’s why it’s important to choose the best and most reliable options. Below is an overview of the top cryptocurrency wallets of 2025, which are deservedly considered the best in their categories.

🔥 Trust Wallet (hot wallet)

Platforms: iOS, Android, browsers (Chrome, Brave, Opera, Edge)
Token support: over 160,000
Fees: network fees + 1% for exchanges through the built-in swap

Pros:

• Quick installation, intuitive interface.
• Support for NFT, DeFi, and Web3 applications.
• Built-in dApp browser for interacting with blockchains directly.
• Staking some coins right in the app.

Cons:

• Fewer settings for advanced users.
• Requires special care when working with dApps.

For whom: Ideal for beginners, mobile use and daily payments. It is a good first wallet.

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🦊 MetaMask (hot wallet)

Platforms: Browsers (Chrome, Firefox, Brave), mobile applications
Token support: over 100,000
Fees: network fees + up to 0.875% swap via MetaMask

Pros:

• Powerful Web3 integration.
• Support for various networks (Ethereum, BNB Chain, Polygon, Optimism, etc.).
• Ability to import multiple accounts.
• Flexible setting of gas fees.

Cons:

• Frequent phishing attacks are conducted through fake websites.
• Does not support Bitcoin (only tokens on EVM-compatible networks).

For whom: active traders, DeFi users, those who work with NFTs or dApps on a browser.

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💻 Exodus (hot wallet)

Platforms: PC (Windows, Mac, Linux), mobile applications
Token support: about 300
Fees: network fees + ~1% on internal exchange

Pros:

• Built-in exchanger, convenient portfolio display.
• Simple and aesthetic design, pleasant UX.
• Synchronisation with hardware wallets (Ledger).

Cons:

• Closed source code.
• A relatively small number of supported tokens.

Who: beginners who appreciate convenience and design. Ideal for holding multiple assets and tracking your portfolio.

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🌐 Phantom (hot wallet specialised for Solana)

Platforms: Browsers (Chrome, Firefox, Edge), iOS, Android
Token support: Mostly Solana, SPL tokens, now also supports Ethereum and Polygon
Fees: Network fees of Solana (extremely low) or the respective network

Pros:

• Lightning-fast speed thanks to integration with the Solana network.
• NFT support on Solana is one of the most convenient implementations on the market.
• Integration with many Solana dApps (e.g. Magic Eden, Raydium).
• Support for SOL staking right in your wallet.
• The ability to import wallets from other networks (Ethereum, Polygon).

Cons:

• A limited number of supported networks, although active expansion has begun in 2024.
• Does not support Bitcoin.

Who: Solana fans, NFT users, those looking for minimal fees, convenience and speed. Ideal for the Solana ecosystem, but now also useful for multi-chain experiences.

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🔐 Ledger (Nano X, Nano S Plus) (cold wallet)

Platforms: USB device + Ledger Live app
Token support: more than 5500
Commissions: standard network commissions, exchange through third-party services

Pros:

• Maximum security: private keys never leave the device.
• DeFi and NFT support via Ledger Live and MetaMask.
• PIN code, 2FA, passphrase.

Cons:

• It requires a separate device, which may seem complicated for a beginner.
• Paid (from $79+).

For whom: investors who keep large sums or do not want to take risks with hot wallets.

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🧱 Trezor (Model One/T) (cold wallet)

Platforms: USB device + Trezor Suite app
Token support: over 1000
Commissions: network only, support for external exchanges

Pros:

• Open-source: transparency and reliability of the code.
• Support for many major cryptocurrencies.
• Easy to set up.

Cons:

• Less support compared to Ledger (especially for DeFi and NFT).
• There is no built-in mobile application.

For whom: users who value security and open source, but don’t plan to be active in Web3 on a daily basis.

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📲 SafePal (cold wallet with mobile integration)

Platforms: USB device + mobile application
Token support: over 10,000
Commissions: network only

Pros:

• QR signature without any Internet connection.
• Support for NFT, DeFi, multi-network, DEX.
• Integration with a mobile app for easy operation.

Cons:

• Less popular than Ledger or Trezor.
• Limited feedback from the Ukrainian community.

Who: Users who want maximum security with mobile control. Suitable as an alternative for long-term storage.

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💡 How to choose your wallet?

• For daily transactions and beginners: Trust Wallet, MetaMask, Exodus or Phantom.
• For long-term storage and investment: Ledger, Trezor, SafePal.
• For DeFi, Web3, NFT: MetaMask + Ledger is the top security and convenience duo.

Choosing a cryptocurrency wallet is a personal decision that depends on your goals, experience, and the amount of assets. For active interaction with DeFi, dApps, or NFTs, it is more convenient to have a hot wallet, such as MetaMask or Phantom. For long-term secure storage, hardware solutions such as Ledger or Trezor are the best choice.

📌 Most importantly, remember: you are the bank for your crypto assets, and only you are responsible for their safety. Always keep your seed phrases offline, do not trust suspicious websites, and choose reputable wallets.