Trezor: Best for Hardware Wallet for Security
Just like cash in your wallet, if someone steals your cryptocurrencies, you are probably out of luck. After high profile cryptocurrency hacks and losses in the past, it is wise to keep a strong focus on the security of your cryptocurrency.
The Trezor hardware wallet is a device you store your bitcoins on. It plugs into your computer or smartphone. The device has a small screen you can use to manage your secure connection. Current models sell for $55 to over $500 depending on which one you choose.2 The cheapest version, a black or white plastic device called the Trezor One, is an incredibly secure device that includes multi-factor authentication and supports more than 1,000 digital coins.3
Just make sure you never lose your Trezor or your Trezor password, otherwise your bitcoin could be gone for good.
Ledger: Best Hardware Wallet for Durability
The Ledger Nano X and Ledger Nano S are hardware wallets that keep your bitcoins safe in an offline device. About the size of a USB flash drive, Ledger devices connect to your phone or computer to store and access your digital holdings. The device is surrounded by a stainless steel cover, which makes it very durable.
With the included Ledger Live software, you can check your balance, and send and receive currencies. Ledger supports over 1,200 digital coins and tokens, so you are far from limited to Bitcoin. Ledger Live even supports coin staking, in which you can earn rewards based on your balance.
The basic Ledger Nano S and Bluetooth-enabled Ledger Nano X cost $59 or $119, respectively.4 Nano S supports up to 20 currencies at a time while Nano X holds up to 100 at a time. Both use highly secure chips similar to the ones used in a chip-based credit card or passport.
SoFi: Best for Beginners
SoFi is a financial company that offers banking, investing, lending, and other products. Within SoFi Invest, you can buy, sell, and hold bitcoins and other cryptocurrency. There is a $1 minimum to open an account.5 When buying crypto, SoFi charges up to 1.25% of the transaction as a markup.
On May 2020, SoFi supports five different currencies. That is not as impressive as some of the digital wallet providers and dedicated crypto exchanges that offer hundreds or more. But the most popular coins are supported. SoFi Invest supports Bitcoin and four other cryptocurrencies.5SoFi offers a great user experience and works well for crypto beginners. It’s good for buying and selling, but not as much for transfers to other wallets. Advanced users may find the platform and trading system at SoFi limiting. Fees are average.