Crypto Wallets for NFTs (Part 5)
Where do I store my NFTs?
Welcome to the Binary Lawyer! You’re currently reading Part 5 of our six-part ebook primer on NFTs. If you’re confused about anything in this article, or just want to learn more about NFTs, check out Part 1, Part 2, and Part 3.
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Crypto Wallets
If you read Part 1 of our series, you know that NFTs are tokens and currency and are stored as such. We store NFTs the same we store our other fungible crypto assets like Bitcoin, Ether, etc. in what we call a “Wallet”.
A wallet is an application that allows users to store information about their cryptocurrency assets. In many cases, setting up a crypto wallet is usually free or relatively low cost, (unless if you’re looking for something with cold storage).
There are a number of applications and projects with wallets that support NFTs and collectible items that are Ethereum based. In order for a wallet to support NFT transactions, it has to be a web3 based. Most NFT platforms are based on “dApps” which are decentralized apps on the blockchain, and because of this, most platforms aren’t compatible with wallets that aren’t web3 based. This means that your regular crypto wallet might not work if you’re trying to purchase, transfer, or hold your NFTs.
There’s a wide range of options for wallets in the marketplace, and that can make the task of finding the best wallet a daunting task. Below, we’ve gathered some of the most popular platforms for NFT wallets and list some of their pros and cons. Please keep in mind that this list is in no particular order of importance or preference, but all crypto wallets are not created equal.
Coinbase Wallet
Formerly known as Tosh Wallet, Coinbase Wallet supports multiple coins, including NFTs. Compatible with Android and iOS, it is a fantastic option for those looking for a platform to store their NFTs and also keep track of their other cryptocurrencies.
Coinbase Wallet supports major token standards in the supply chain, such as ERC-20 and ERC-271. One of the most convenient features of the wallet are the wallet usernames. Wallet addresses can be long and tricky, so Coinbase allows user to assign a username to their wallet address. This makes it easy and convenient to send crypto between wallets and to friends. If you’re interested in this wallet you can check it out at: wallet.coinbase.com
Pillar Wallet
Pillar Wallet is the first community run crypto wallet. It is an open-source platform developed to store, transact or track NFTs and other cryptocurrencies. It is compatible with Android and iOS. What makes pillar unique is that it allows users to store, track, and release their information to others on the app. For example, it would be the equivalent of you making a purchase with your debit card, getting the money debited, and the bank not being able to share where you spent the money or how much you spent with anyone unless if you think it’s necessary. This structure allows Pillar to provide users with an almost unprecedented amount privacy and security.
On top of these impressive perks, Pillar Wallet has an easy to use UI. This feature makes it perfect for beginners or those who are less tech-savvy, but trying to get into NFTs. Pillar wallets can also be assigned their own username so that it’s easy to transfer money between wallets.
If you’re interested in the Pillar Wallet, you can check it out here: Pillar Project
Enjin Crypto Wallet
The Enjin Platform is the creator of the ERC-1155 token standard, so it makes sense that they have a wallet that supports NFTs among other cryptocurrencies. The Enjin Crypto Wallet is a secure mobile cryptocurrency wallet compatible with iOS and Android devices.
Enjin has an easy to navigate user interface, convenient registration, and supports ERC-20, ERC-1155, and some ERC- 721 tokens. One of the best features of the app is that it has a DApp browser built in so that users can freely move between crypto sites such as Cryptokitties and Six Dragons without having to leave the app. One down side is that, it is a closed source code, and there’s no transaction time estimation, but other than that it provides full support for BEP2 on Binance Chain and ERC-20 tokens on the Ethereum network. If you’re interested, you can check it out here: Enjin Wallet
MetaMask Wallet
MetaMask is a secure, industry-standard, multi-coin wallet that is used in Google Chrome, Mozilla Firefox, and Brave Browsers as an extension that provides users secure access to their cryptocurrency right inside their favorite browser. MetaMask is trusted by millions of users globally.
Users can easily buy and transfer Ethereum based tokens or ERC-20 tokens and add them to their wallet. MetaMask allows users to purchase crypto via Coinbase and ShapeShift. One of the biggest features of MetaMask is that it lives in your browser, so when you’re browsing the web you can easily buy and trade Ethereum and ERC-20 based tokens right in your browser.
Trust Wallet
A secure multi-coin wallet, this platform allows users to make quick trades. It provides full support for BEP2 on Binance Chain and ERC-20 tokens on the Ethereum network. Similar to Enjin, Trust Wallet has its own DApp Browser that allows users to easily switch between different Ethereum projects.
On top of this, Trust Wallet allows users to easily stake tokens. Staking is when you loan the platform a form of currency for a specified period of time. The platform then pays you for allowing them to borrow your money, similar to the way that interest works in a bank. One of the coolest features of the Trust Wallet is the staking that they offer to users. For some of the coins, you can get up to a 1400% return on some of your tokens. It’s a really great wallet to look into if you’re interested in growing your money and learning about new tokens Ethereum based projects.
Cold Storage
What is cold storage? Why do you need it?
All of the wallets listed above are what are considered to be “hot wallets.” Hot wallets are crypto wallets that are accessed by the internet and stay connected to the internet. “Cold storage” is a wallet that is not connected to the internet, but keeps the same record of information as the blockchain it’s connected to.
Traditionally, when users have their credit card or banking information stolen, if they lose any money from the event, the bank or financial institution generally refunds the customer.
With a crypto wallet YOU are the bank and are responsible for protecting your assets. If your information is stolen and you lose your money, it’s just gone. There’s no way to get that money back. Whoever scammed you out of the cash is going to be enjoying a nice lobster dinner tonight, we can assure you that.
We’ve talked to numerous clients over the past several years that have had their money stolen from their wallets and each time the person is devastated. Generally, people don’t look into cold storage until after they’ve had money stolen from their wallet. You don’t have to be like the rest of us. You can start yourself off right in the beginning and just get a cold storage wallet. If you plan on having more than $100 in your crypto wallet, we HIGHLY suggest getting a cold storage wallet.
Trezor
The Trezor hardware wallet is a device that allows users to move money easily from a hot wallet to other users or to cold storage. It’s a device that’s attached to your computer and acts almost like a bridge between your wallet on your computer and a secure offline database that keeps a record of your transactions. The Trezor is convenient to use as it’s small in size and can be replaced just as long as you have your 24 seed word code.
On top of this, Trezor has a number of features that make it one of the most popular and convenient choices for crypto users. For extra security, Trezor has a button on the device that requires users to have the device and press the button on the device to send currency. Without the device, hackers are unable to send money unauthorized from your wallet, even if they were to gain access to your information.
Once you connect your Trezor to your computer, you can move your currency into your cold storage wallet, and then remove it from the computer whenever you’re done moving your money. It’s important to move your money from your hot wallet to your cold storage to ensure that while you’re browsing the internet that someone doesn’t steal your crypto information.
While most of the hot wallets mentioned above are free, the Trezor starts at $59 and you can check it out here if you’re interested: Trezor Wallet
Ledger
One of the most popular in the industry, Ledger, is a cold storage hardware wallet that gives users the ability to manage their wallet and add new wallets to their device. Ledger has something called Ledger Live software that provides users a dashboard with a comprehensive breakdown of all of their crypto currency asset holdings. This allows for users to easily manage their different assets and portfolios in one convenient place.
Similar to the Trezor cold storage wallet, Ledger connects to your computer via a USB cable and then takes the information from your wallet and stores it securely on the device. For added security and protection, just like the Trezor, the Ledger device provides users with a 24 seed word code and pin code verification for users to access the device. Because the device is stored offline and keeps your wallet information from being accessed by the web, this cold storage device is extremely secure and convenient to use.
Unlike the hot wallets listed above, the Ledger wallet isn’t free, it starts at $59 and you can check it out on their website if you’re interested: Ledger Wallet
Hopefully you found this ebook segment on Crypto Wallets helpful. If you’d like to suggest a hot or cold wallet for this segment please feel free to leave a comment below. As always, let us know if you have any questions.
We’re always happy to help!
-Binary Lawyer
Disclaimer: None of the information above constitutes as financial or legal advice.