Choosing a crypto wallet: exchange, app or hardware?
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There’s no single best wallet. The right one depends on how much you hold and how often you use it.
| Type | Who holds the keys | Good for | Main risk |
|---|---|---|---|
| Exchange account | The exchange | Buying, small amounts, beginners | Exchange freezes or fails |
| Mobile or browser wallet | You | Everyday use, apps, small to medium amounts | Phishing, malware on your device |
| Hardware wallet | You, offline | Savings, larger amounts | Losing the seed backup |
A sensible setup
- Keep only spending money in an app wallet, the way you’d carry cash.
- Move savings to a hardware wallet. Buy it directly from the maker, never second-hand or from a marketplace reseller.
- Use the exchange to buy and sell, then withdraw.
A hardware wallet shows each transaction on its own screen. Confirm the address there, not on your computer. Ready to buy one? Follow our hardware wallet setup guide.
When to upgrade
A common rule of thumb: once your crypto is worth more than you’d be comfortable losing from your phone, it belongs on a hardware wallet. For many people that’s somewhere around a few hundred dollars.
Under $200: an exchange or app wallet is fine. $200 to $2,000: an app wallet, and consider hardware. Over $2,000: a hardware wallet. Over $50,000: a hardware wallet plus a written inheritance plan, and consider a passphrase or multisig.
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