What is Cardano (ADA)?
Before proceeding to the Cardano (ADA) wallet discussion, we must present a few general takeaways about what Cardano is. Besides that, we remind you that we also have a separate in-depth article titled “What is Cardano”. Don’t miss it!
You are familiar with the first and second-generation cryptocurrencies, Bitcoin and Ethereum, right? So, let’s say Cardano is the “first third-generation cryptocurrency.” It intends to provide a platform similar to Ethereum and simultaneously tries to solve the shortcomings specific to Ethereum.
A group led by Charles Hoskinson created Cardano to give cryptocurrencies a “more balanced and sustainable ecosystem.” Initially, Cardano was a research project, but it has since grown into its own blockchain platform. Its developers thought blockchains like Ethereum have problems with scalability and working with other systems. So, the best way to solve these problems is to build a new platform from the ground up. And finally, ADA is the token that powers the Cardano blockchain.
What is the Cardano Wallet?
To invest in ADA, you must have a Cardano wallet app. A wallet is needed to store, send, and receive ADA, so you can’t do anything on the network without one.
The best Cardano wallet should not only be able to handle transactions but should also be very safe. An ADA wallet’s main job is to keep money safe. In general, hardware wallets are the most secure, while exchange wallets are the least secure. It’s important to know that a wallet on an exchange is only as safe as the investor’s account. To keep the wallet safe, you must use strong passwords and turn on two-factor authentication (2FA).
Why You Need a Cardano Wallet?
As we mentioned above, you need to have a Cardano wallet to perform operations with the ADA token. But those wallets are different.
Even more, most exchanges offer their own wallets, and every type of ADA wallet has advantages and disadvantages.
Suppose you are a first-time user wanting to purchase or keep a modest quantity of Cardano. In that case, a mobile or online wallet will provide a decent balance of security and usability. On the other hand, an advanced user may opt for a hardware wallet.
How does the Cardano wallet works?
When you set up a new Cardano wallet, you receive public and private keys.
The public key is for your ADA wallet address, which you can share to get ADA. And when you send ADA tokens, the private key’s purpose is to digitally sign the transactions, which can then be added to the Cardano blockchain ledger. It means you have to keep the private key a secret.
Depending on how the wallet handles your keys and other functionalities, we can differentiate various types of wallets.
Types of Cardano Wallets
Let’s look at Cardano wallet types.
NOTE: There are three types of ADA wallets: software, hardware, and paper. But the software type has some subtypes.
Hardware Cardano Wallet
These USB cold-storage wallets transport and store cryptocurrency offline, making harmful attacks nearly impossible. Hardware wallets are costly for amateur investors. However, long-term investors choose them because they combine security and usefulness.
Cardano Web Wallet
Web wallets are great for newcomers because they don’t require additional software. Private keys must be stored on a third-party Internet server. Thus, only a browser is needed. Unfortunately, hot wallets can be hacked and stolen.
Cardano Mobile Wallet
Casual users can also download mobile apps for all operating systems. Mobile wallets are user-friendly and, while not the safest, are an excellent option for buying and storing smaller quantities of Cardano.
Cardano Desktop Wallet
Desktop wallets are operating system apps like mobile wallets. They provide acceptable security for small to midsize crypto. However, y our computer is always linked to the internet, offering a perpetual attack vector.
Cardano Paper Wallet
Simple paper wallets might be tricky to set up. Although your ADA funds are housed in cold storage, providing excellent protection. Both public and private keys are printed on a piece of paper, like paper money, that you must keep secure.
Best Cardano Wallets
And now, it’s time to move on to discussing the best wallets that support Cardano. In this comparison table, we have collected what we think are the best ADA wallets, specifying their types, essential features, and fees.
As you can see, there are many offers available in the market. All the wallets presented in the table are of exceptionally high quality. You should choose which wallet you will use depending on your personal preferences, budget, and investment plan.
Just to note that Daedalus and Yoroi wallets are Cardano’s native wallets, which means that some crypto operations can only be done through them. We will talk about those actions below.
Best Cardano Wallet for NFT Trading
Of course, you can buy and sell Cardano NFTs on various NFT marketplaces, but if you want to use a separate wallet, then the choice is not so big here. Yoroi is likely the best Cardano wallet for NFT Trading.
As a dedicated Cardano platform, it supports all NFTs created on the Cardano network. Furthermore, it allows investors to send their assets for true cost and is constantly getting upgraded.
Best Cardano Wallets for Cardano (ADA) Staking
Daedalus and Yoroi are the best wallets that can be used for Cardano staking because, as we already mentioned, they are native wallets.
You can also use these two ADA native wallets for other Cardano-related things like governance. Here you can see a complete list of Cardano pools, watch their performance and delegate your ADA tokens.
We will discuss the “Cardano Staking” in a separate article. Read it!
What to Consider When Choosing a Cardano Wallet?
Even though we have provided a list of Cardano wallets, it might be challenging to decide which one best suits your requirements. So, to simplify the decision process, we’ve listed some of the most crucial factors to consider when choosing a wallet.
Every cryptocurrency wallet’s main objective is to keep money secure. The best Cardano wallet must thus feature top-notch security. Of course, the best safety is provided by using a hardware wallet, as we’ve already discussed. However, even the more practical exchange wallets may be safe if the platform is governed and has two-factor verification.
As we previously discussed, several Cardano applications are made specifically for ADA. Maintaining a broad portfolio is simpler on platforms like Blocktrade since they support various currencies. It may be beneficial to know in advance how many coins a platform supports depending on an investor’s plan.
The best ADA wallets often don’t have a lot of fees attached to them; for example, the Blocktrade wallet does not require any fees at all. But still, there might always be a network fee applied to each transaction sent. Some wallets tack on their fees for transactions, which may add up rapidly. Extremely high transaction fees are likely to be wary of since they indicate the platform puts revenue over its consumers.
Few people today spend their days trading or investing while seated at a desk. Instead, a large portion of global investing takes place on smartphones. Therefore, having a robust, user-friendly mobile app is crucial for the finest Cardano wallets.
Every Cardano wallet must be convenient; after all, no one likes to go through extra hoops to access their money. A wallet should have a straightforward onboarding experience, and no essential functionality should be hidden behind menus. Unfortunately, convenience often means sacrificing security. Therefore, before selecting a platform from our list of Cardano wallets, each investor should carefully consider what they value more.
How to Get a Cardano Wallet?
- Go to https://yoroi-wallet.com and click “Download” to get started. In this tutorial, we’re going to use the Chrome extension. Once you agree to the terms and conditions, the extension will automatically be installed on your computer. Open the add-on, choose the language you want to use, and then click “Next.”
- You can now choose between the simple and advanced versions of the Yoroi Wallet. Pick the one that meets your needs the best. In this guide, we will use the “simple version.”
- Next, choose whether Cardano can use payment URLs or not. Remember that Yoroi Wallet will never share or store your personal information without your permission.
- To move forward, you must now choose between “Create a wallet,” “Connect a wallet,” or “Add hardware wallet.” In this case, a new wallet will be made.
- After clicking “Create a wallet,” choose “Cardano” from the next window. Then, click “Create Wallet” a second time.
- You will now be asked to enter your wallet’s name, password, and identity. Then, you’ll have to write down the 15-word recovery phrase. This must be kept safe if you want to get your wallet back.
- Make sure you have your ADA assets in your account before you start staking or delegating. Then, select “Receive” from the top menu to move ADA assets to your new Yoroi wallet. To transfer money from another wallet or exchange, copy the wallet address or scan the QR code.
Then you’re all set to go!
In conclusion, we can say the following: if you have decided to engage in multi-faceted Cardano investments (e.g., Cardano staking) and want to make the processes completely manageable, then Cardano’s native wallets, like Daedalus and Yoroi, are the right choice.
On the other hand, if high security is a vital priority for you, then naturally, hardware wallets are the safest. Finally, suppose you want to start investing in Cardano in small steps. In that case, you can consider a no-fee software wallet from a third party. Blocktrade wallet fits this role perfectly as a quality product.