Cardano (ADA), a leading cryptocurrency, utilizes a proof-of-stake mechanism and supports smart contracts, enabling the digital tokenization of items like academic credentials, retail products, and identities. It also allows for the creation of decentralized applications (DApps) akin to Ethereum. Securing ADA in a dependable wallet is essential for new or prospective investors. This article guides you in selecting a reliable Cardano wallet. We’ll introduce you to the best Cardano wallets to safeguard your investments. But first, we’ll discuss key considerations when selecting a cryptocurrency wallet.
Methodology
Our methodology for selecting the top platforms was conducted over a period of six months. The selection was reduced to three categories: the best place to earn interest, purchase, and store. Our research determined that YouHodler, OKX, and Kraken met these qualifications.
YouHodler
YouHodler is a borrowing and lending platform for cryptocurrency. The company has licenses in the E.U. in a few countries, giving customers a level of security.
In terms of being the best platform to earn interest, YouHodler offers customers 5.65% interest to deposit their crypto. In contrast, OKX pays 1% interest. Additionally, sum of the features include:
- Spot trading
- Crypto collateralized loans
- Trading features
- Interest on crypto deposits
OKX
OKX is an all-in-one exchange that services multiple countries on a global scale. The exchange accepts a variety of payment methods via a third-party payment processor. It was chosen because of it’s low fees, coming in at a 0.08% maker and a 0.1% taker. Some of OKX’s features are:
- NFT marketplace
- Derivatives
- Trading bots
- Earn products
- Loans
Kraken
Kraken is a U.S. based exchange that has gained a reputation for adherence to regulation. In terms of safety, the exchange regularly audits and does proof of reserves. Kraken has licenses in multiple states and countries. It also keeps funds in cold storage. This makes it a safe option for user store ADA. Some of Kraken’s features are:
- Derivatives trading
- Advanced trading interface
- Staking
- Margin trading
This process was fact-checked and peer-reviewed to ensure the accuracy of the statements made. To learn more about BeInCrypto’s Verification Methodology, click here.
Best exchanges for Cardano
Best to earn interest
YouHodler
Best to buy
OKX
Best to store
Kraken
What are the best Cardano wallets?
Here’s a roundup of the top wallets for securely holding your Cardano (ADA).
1. YouHodler
Switzerland-based YouHolder is an all-in-one crypto platform that gives customers multiple services in addition to a crypto wallet. The wallet can be accessed via desktop and mobile devices. The platform’s goal is to be a one-stop shop where customers can store their crypto and gain many benefits.
Users can buy over 55 assets on YouHodler, and of course, Cardano is one of those. The additional features include up to 10.7% APR on your crypto holdings for USDT and 10.3% for USDC, with weekly payouts and no minimum deposit required. loans that have up to 90% loan-to-value and the capacity to combine yield generational strategies.
The team also does not lock funds. Meaning, that customers can withdraw their funds at any given moment. Customer support is available 24/7.
2. Daedalus Wallet
Daedalus Wallet is often the most recommended cryptocurrency wallet for storing your ADA. This is largely due to the fact that it’s the “official” open-source wallet of the Cardano platform. If you’re browsing on the Cardano website, this is the wallet that’s listed to use. This wallet is considered a Full Node wallet, meaning it downloads the entire Cardano blockchain for use. From there, it validates every single transaction in the blockchain’s history.
On top of this, thanks to the hierarchical deterministic wallet technology integrated into Daedalus, you can manage an unlimited amount of external wallets as well. This way, you can have multiple wallets for day trading, holding, and more.
Interestingly, the wallet also contains a newsfeed to keep up to date with all Cardano updates, as well as changes to the wallet itself. Daedalus is available on Windows, macOS, and Linux as well, so any operating system can take advantage of it.
3. Yoroi Wallet
If you’re not interested in a full wallet, otherwise known as managing the entire Cardano blockchain, the Yoroi wallet is a great option.
Also recommended on Cardano’s official website, Yoroi doesn’t require you to download the network. Instead, you can start transacting as soon as you open the wallet.
The wallet is secure, however. Your private keys are completely encrypted and aren’t even stored on the platform’s servers or given to any third parties. There aren’t even analytics stats, meaning they have yet learned how you manage your currencies. This isn’t to mention that it’s a streamlined wallet that even those who aren’t technologically inclined can use Yoroi. Additionally, Yoroi is available as a browser extension and a mobile app — making it easy to use across different devices!
4. Ledger Nano S
The Ledger Nano S is a hardware wallet, meaning your assets are kept completely safe in comparison to a web or online wallet. This is because the wallet is entirely untethered from the internet when not in use. Think of it as a USB drive that can store your assets.
Using the Ledger is simple. It comes with two buttons and requires a PIN to enter. The wallet is only accessible in person, meaning bad actors have no way to break in online. Even when the wallet is connected to your computer, your private keys are kept encrypted and inaccessible.
When not in use, you can simply store the Ledger Nano S in a safe or somewhere else secure. It even comes with a 24-word recovery phrase in the off chance you do lose access to your wallet.
Note that due to the number of steps required to access your assets, this is a wallet recommended for long-time holders. Day traders should leave some of their assets in another wallet. If you ever want to invest in other cryptocurrencies, the Ledger can assist you there as well.
5. Trezor
A competitor to Ledger, Trezor is the other popular hardware wallet for secure cryptocurrency storage. It’s was actually the first hardware wallet in existence, making this company a fairly reliable solution.
When plugging in your wallet, the Trezor requires a complex PIN number to prevent in-person theft. It’s a random number every single time you plug in the Trezor as well.
Similar to Ledger, if you somehow lose your assets, the wallet also provides a 24-word recovery phrase. Plus, it also supports a vast number of assets in case you want to branch out from ADA.
6. Adalite
Due to its partnership with Cardano, Adalite, developed by Vacuumlabs, is a secure option. Despite not being endorsed on Cardano’s official site, its connections imply reliability. Being a web wallet, Adalite poses certain online risks. It supports hardware wallets, mnemonic phrases, and files for access, offering an easy-to-use interface for managing ADA, including staking capabilities to earn interest on holdings.
What to look for in a Cardano wallet
When looking at Cardano, Bitcoin, or Ethereum wallets, and any cryptocurrency wallet in general, consider the following:
- Ease of use: Consider the wallet’s usability: Is it intuitive and clear? Check if the buttons are accessible and inputs straightforward, and for digital wallets, ensure all necessary information is visible and the interface is customizable and visually pleasing. Usability is crucial for a cryptocurrency wallet; it may not be worth using if it’s complex.
- Security: Evaluate the wallet’s encryption and security features. Ensure it has AES-256 encryption and supports two-factor authentication (2FA) at a minimum. Avoid wallets that lack 2FA.
- Is it still in development?: Ensure the wallet’s development team actively updates it with new currencies and security features. Using an outdated wallet risks your assets.
- Support team: Does the wallet have a reliable support team? While this might be difficult to check ahead of time personally, you can look on social media and read reviews to see what others have to say.
Need a reliable hardware wallet to hold your ADA? Shop SafePal!
Wallet types
In addition to identifying key features in a wallet, it’s important to consider five different types of wallets when deciding where to keep your ADA.
- Web wallet: Accessible online, often through exchanges, offers convenient access to your assets but is less secure, exposing them to potential online threats. Ideal for day traders, larger holders should store most of their assets in more secure wallets.
- Mobile wallet: Like web wallets, these are usually online and offer convenience for quick transactions on your phone, secured by PIN and a recovery phrase. However, they pose a risk if your phone is stolen, potentially giving thieves access to your crypto despite the possibility of recovery using the words.
- Desktop wallets: They balance convenience and security, offering better protection than web or mobile wallets but less than hardware wallets. They safeguard your assets by disconnecting from the internet when your computer is off, reducing the risk of online threats and making them a generally safer option for storing your assets.
- Hardware wallet: These wallets are entirely external devices that store your assets offline. You plug one into your computer or mobile device and enter a PIN number. That PIN must be input via a small screen on the device, making it hard for anyone to look over your shoulder.
- Paper wallet: Often, a QR code printed from an offline computer provides the highest security for cryptocurrency and keeps it safe for long periods. Accessible by scanning, it’s crucial to prevent damage; a torn or ruined paper wallet means lost assets without a recovery key. Investors often laminate their paper wallets to protect them.
Cardano wallets keep your ADA secure
Now you know the best Cardano wallets to keep your ADA secure. On top of that, you now understand cryptocurrency wallets in general and can get involved in the crypto space without issue. If you still haven’t bought Cardano, you can do so through any reputable and reliable cryptocurrency exchange like StormGain.
On the fence about a reliable ADA wallet? Try Ledger Wallet today!
Frequently asked questions
Cardano is a decentralized public blockchain and cryptocurrency project that was created by blockchain development firm Input Output Hong Kong (IOHK). The project was co-founded by Charles Hoskinson, who is also the CEO of IOHK, and Jeremy Wood.
Cardano was developed to address the scalability, security, and sustainability challenges facing other blockchain platforms and to provide a more secure and scalable platform for the development of decentralized applications (DApps). The Cardano blockchain and its native cryptocurrency, ADA, were launched in September 2017.
A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.
Hardware are physical devices that store private keys offline and are designed to be highly secure. Hardware wallets are often considered the most secure type of cryptocurrency wallet because they are not connected to the internet and are therefore less vulnerable to hacking. Software wallets are wallets that are installed on a device, such as a computer or smartphone.
A hot wallet is a cryptocurrency wallet that is connected to the internet and is therefore more easily accessible. Hot wallets are convenient because they can be used to quickly send and receive cryptocurrency, but they are also more vulnerable to hacking and other online threats.
A cold wallet, on the other hand, is a cryptocurrency wallet that is not connected to the internet and is therefore more secure. Cold wallets are often stored on physical devices, such as a USB drive or a hardware wallet, and are considered the most secure type of cryptocurrency wallet because they are not vulnerable to online threats.
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