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One of the most confidential coins on the cryptocurrency market is Monero. The cryptocurrency was created in 2012 and is a fork of the Bytecoin blockchain. Monero focuses on providing complete anonymity to its users. Transactions that take place on the Monero blockchain cannot be traced because the transaction system itself is designed so that real transactions are mixed in with false ones. For this reason, the cryptocurrency has even earned a reputation as a coin that is used by attackers. However, the developers themselves say that nothing can be 100% anonymous, as there is always the possibility of human error.
Any cryptocurrency requires a cryptocurrency wallet to provide a safe and affordable way to store your money. In this article we will find out which wallets are best suited for storing Monero(XMR), talk about the advantages and disadvantages of each of the wallets and figure out which wallet is the best.
What is a cryptocurrency wallet?
Cryptocurrency wallets are software tools that allow users to interact with a cryptographically secure blockchain. In particular, Monero wallets allow cryptocurrency users to interact with the Monero blockchain. The primary function of any cryptocurrency wallet is to allow users to store, send and receive cryptocurrency from other wallets via the blockchain.
List of best cryptocurrency wallets for Monero
1)Ledger Nano X
Some of the safest places to store Monero, like any other cryptocurrency, are cold storage wallets. Ledger Nano X is a cold storage wallet released by Ledger in 2019. It is a USB-type drive with a small screen and buttons that allows you to store cryptocurrency and perform transactions securely and offline. The Ledger Nano X wallet supports more than 1,100 cryptocurrency assets, including Monero.It has a built-in battery that allows it to be used even without being connected to a computer, and it supports Bluetooth for syncing with a mobile device.
The drawbacks include the high price of this device, which is typical of most cold wallets. However, you should understand that the price is not taken from the ceiling and is reinforced by the fact that the wallet provides maximum security for your assets.
Security
When it comes to security, Ledger Nano X uses modern security methods such as hashing and fingerprint authentication. It also features two-factor authentication, which is secured on two levels: through a PIN and a Sid-phrase for recovery. This creates an extra layer of protection for your transactions and data. It is important to note that, like any cold wallet, the security of the Ledger Nano X depends on how you store and protect its private key backups.
Advantages
Accessible from a mobile device
Convenient software
Best security on the market
Disadvantages
Relatively high price
Small storage space
Not officially delivered in Russia and Belarus
Wallet type: cold wallet, hardware wallet
Mobile application: Android and iOS.
Price: 149 USD
2)Trezor T.
The Trezor line remains one of the most popular hardware crypto wallets for Monero. This particular company made the first hardware wallet for Bitcoin. The Trezor Model T has a touch screen and keypad that makes it easy to enter and verify transactions. Unlike the Ledger Nano X, the wallet from Trezor has unlimited wallet storage, allowing you to store multiple cryptocurrencies.
Security
The device has two-factor authentication, which means that to log into your wallet you will need to enter a code that is sent to your mobile phone as well as your password. There is support for fingerprint authentication, which adds another layer of security and convenience to access your wallet. The Trezor Model T has built-in tamper protection that protects your device from unauthorised access and cryptocurrency theft. In the event of an attempted hack, the Trezor Model T will automatically block access to keys and data on your device. The device has upgradable software that allows you to receive security updates and new features to protect your cryptocurrency assets.
Benefits of
Secure password storage
Up-to-date software
Best security on the market
Disadvantages
Computer dependency
More expensive than Ledger Nano X
Wallet type: cold wallet, hardware wallet
Mobile App: Android
Price: $219
3) Binance
Binance is currently one of the most trusted centralised exchanges in the world, which is a great solution for quick access to a Monero Wallet provided by the exchange itself. The platform provides many features for managing your assets, including trading.
Security
All Binance deposits are held in escrow bank accounts and are insured up to $250,000 in case of bankruptcy by the Federal Deposit Insurance Corporation. Moreover, there are several other features designed to ensure that your funds are protected at all times. Address whitelisting and device restrictions have been added, as well as two-factor authentication.
Benefits of
Fast and efficient access to the wallet
Wallet exchange is completely free
Can be accessed via mobile app
Good customer support
Disadvantages
Centralized exchanger does not guarantee 100% safety of your money
The interface can be difficult for beginners
Wallet type: Hot wallet
Mobile App: Android and iOS.
Price: free
4) Gemini
One of the best software wallets for Monero is Gemini. It is a crypto exchange with a beginner-friendly interface that is valued for its security. One of the features of this exchange is the almost zero commissions for very large traders. Gemini stands out as the best platform for people looking to get started with cryptocurrency. Its easy-to-use, mobile app and Cryptopedia educational resources allow almost anyone to learn everything they want to know about cryptocurrency.
Gemini has a mobile app for Android and iOS.
Security
Digital assets are insured against losses that result from a security breach or hacking, fraudulent transfer or employee theft (though the company doesn't say what kind of loss coverage it carries).
The company claims that the bulk of customer assets are kept in "cold storage", away from online threats that could breach security. However, loss of assets due to unauthorised access to your personal account, such as the theft of your personal codes and logins, is not covered by Gemini insurance.
Benefits of
Suitable for both beginners and advanced users
Supports more than 40 cryptocurrencies
Disadvantages
Fees, slightly higher than on other crypto exchanges
Poor customer support
Wallet Type: Program Wallet
Mobile App: Android and iOS
Price: free
5)KuCoin
KuCoin is a large cryptocurrency exchange offering the ability to buy, sell and trade cryptocurrencies. In addition to basic trading options, the exchange can also act as a wallet for Monero.
Security
Despite KuCoin using identity verification and other standard security features, the exchange suffered a major hack in 2020. Hackers managed to steal more than $280 million from users' hot wallets. The security breach of the exchange makes one wonder about its suitability, even considering the fact that all funds have been recovered from users, thanks to insurance funds.
Benefits of
Supports many cryptocurrencies
Pretty safe
Low fees
Disadvantages
Low trading volume
There are cases of hacking
Does not support fiat currency pairs
Wallet type: Hot Wallet
Mobile App: Android and iOS
Price: free
6)Monero GUI
The Monero GUI is a desktop wallet with a graphical interface, which was designed specifically to hold Monero. The Monero GUI wallet refers to the "official" wallet, designed and maintained by the team behind the Monero blockchain. It is an excellent wallet with a good design and many handy features, but it is not the best for Monero, despite being official.
Security
The Monero GUI wallet uses the HD algorithm to create a new address for each transaction. Consequently, it is difficult for anyone to track transactions to or from your wallet and compromise your financial security. Combined with the fact that Monero is a privacy-focused coin, this feature increases user security. The team behind the project has made some efforts to ensure the security of users' funds. But we can't say that the wallet is completely secure, as it is not regulated.
Advantages of
Fast transactions
Official wallet for Monero
Disadvantages
Not available on mobile devices
Supports only Monero
Can be difficult for new users
Wallet Type: Desktop, Program Wallet
Mobile app: None
Price: 1 year free
7)Monero Wallet
One of the varieties of cold wallets is a paper wallet. It represents printed piece of paper, on which your private key (or Seed-phrase) and public address are written. The public address is needed to send you cryptocurrencies from third parties. The Seed-phrase is needed to regain access to your assets. Paper wallets are best for users who rarely plan to interact with their own cryptocurrencies. You can create and print out a paper wallet from special wallet generating sites such as moneroaddress.org. You can also save it as a PDF file or on a USB stick or burn it on CDs/DVDs.
Security
One of the biggest disadvantages of paper wallets is the fact that they are stored on paper. If the paper gets wet or burns in a fire, you won't be able to read your private key. Therefore, it is better to use other storage options than paper. Preferably, you should have 2-3 copies stored in well-protected places.
Advantages of
Free and safe
Official wallet for Monero
Can be almost as secure as hardware wallets if set up properly
Disadvantages
Risk of loss or theft of the sheet itself
There is risk of irretrievable loss of access
Wallet type: Cold wallet, paper wallet
Mobile App: None
Price: free
Basic types of Monero wallets
So that you are not confused about the different types of wallets, below we have provided a description of each of them.
Cold wallets: Cold wallets use digital keys created on a device that has no internet access. They are also known as hardware wallets. Cold wallets are physical devices on which cryptocurrencies are stored.
Hot wallets: These are wallets that use keys created or stored on a device with internet access. Hot wallets offer high functionality but are less secure than cold wallets. Compared to cold wallets, users do not have the option of recovering assets if they lose access to them.
Hardware wallets: Hardware wallets are physical items (e.g. a USB drive). Ledger and Trezor are popular names in hardware wallets. They are considered the most highly secure cryptocurrency wallets.
Software wallets: These online cryptocurrency wallets or trading platforms do not require a download and can be accessed via an internet browser.
Withdrawal
If you need a wallet for Monero that can provide maximum security combined with privacy, and you're not sorry to give up a couple of hundred quid, your choice is a cold wallet such as Ledger Nano X or Trezor T. However, you should always go by what you need the wallet for. It could be a wallet for long-term storage or you need quick access to your cryptocurrency on an exchange. As for the other wallets we've looked at, we strongly advise against storing all your assets in just one of these free wallets, as the risk of losing your assets on such wallets is many times higher than on hardware wallets. Ideally, have a hardware wallet in conjunction with a hot wallet such as Binance. This way you can reduce the risk of losing your assets