My Top 11 Picks of the Best Crypto Wallets in Canada (2023)

When I first heard about crypto wallets, I imagined something like the everyday wallets we use to store our money. However, I learned that crypto wallets are entirely different since they use a technology created through cryptography.

A crypto wallet is software that securely stores your private key. Technically, your crypto assets don’t get stored in your wallet, but on the blockchain.

When you own any cryptocurrency, you have a private key that proves ownership of that cryptocurrency on the blockchain. Since all the information on the blockchain is public and accessible by anyone, people can verify your ownership using your public key.

You can use a crypto wallet to start making cryptocurrency transactions, buy or sell tokens through Centralized or Decentralized Exchanges (DEX), and interact with Decentralized Finance (DeFi) protocols. Now let’s get into how crypto wallets work!

How do Crypto Wallets Work?

Let’s go through an example together to help understand the purpose of the public key and private key better. When someone wants to send you an email, they should have your email address. Your public key is like your email address; if you wish to receive crypto from anyone, you need to give them your public key.

The private key is like your email password, which is even more critical since it contains your crypto holdings. So losing your private key is equivalent to losing your money, which means you should keep it in a secure location and not share it with anyone.

Since private keys are long strings of numbers and letters, securely storing them is challenging. There is a high chance of making an error while writing or typing your private key, which may be scary for the new investor in crypto.

Due to this reason, when you create a new crypto wallet, you are provided with 12 or 24 words randomly generated from your private key using different algorithms like SHA256 or BIP39. These 12 or 24 words are also known as Seed Phrases. If you need your private key, it will still be accessible from within your wallet.

The safest method for you to store your seed phrase is to write it down on a piece of paper, make two copies, and keep them in various locations that are secure for you. This way, even if you lose one of them, you will still have two backups, and thus you won’t lose your belongings.

Storing your seed phrase on your mobile phone or computer is not very secure since these devices get connected to the internet and have exposure to hacks and malware. Whether you are a citizen of Canada or any other country, learning what crypto wallets are and how they work is a necessary step. Next, let’s get into the different types of crypto wallets.

Based on how and where a wallet stores information, different types of crypto wallets can be divided into the following categories:

• Software (Hot) Wallets: These wallets can be a mobile app, a desktop app, or a website extension. Software wallets stay connected to the internet, which makes your crypto more easily accessible compared to hardware wallets, and they are free of cost.

• Hardware (Cold) Wallets: These wallets are hardware devices that look like USB thumb drives. Hardware wallets are offline and only go online when connected to a computer with an internet connection. The fact that hardware wallets are mostly offline makes them more secure than software wallets. These wallets cost between US $50 – 300.

• Paper Wallets: These wallets are physical printed papers containing the private keys and the QR code of a wallet. Paper wallets are intended for long-term holders who want maximum security for their coins. However, this method has many disadvantages.

Since paper wallets are intended for long-term storage, it’s a complicated process if you ever want to conduct transactions or trades. Another issue is that they can only store one type of cryptocurrency, meaning if you want to hold multiple types, you will need multiple public and private keys for each. For these reasons, I don’t recommend using a paper wallet.

Now, what about Custodial and Non-Custodial Wallets? What are those, and what’s the difference between them? Well, I’m going to explain that right now.

If you want to ensure your funds are more secure throughout your journey in crypto, you should always pay attention to whether a wallet is custodial before you start using it. A custodial wallet service (like Coinbase or Binance) holds onto your private key, so it is responsible for safeguarding your funds.

Conversely, a non-custodial wallet gives you complete control over your private key, meaning you are responsible for protecting your holdings. The main advantage of using a centralized exchange (custodial) wallet is that you can connect it to your bank account and easily swap between cryptocurrencies and fiat currencies.

However, the fact that you do not hold your private keys is a huge disadvantage – you can lose your funds in hacks or if the exchange goes bankrupt, like in the case of FTX and BlockFi, which collapsed recently.  So, I only recommend using a custodial wallet if necessary. Always keep this great quote in mind: “Not Your Keys, Not Your Coins.”

Even though non-custodial wallets are much more secure, the disadvantage is that if you lose your private keys, even the developers who built the wallet cannot retrieve your coins. Hence, I emphasize storing your seed phrase securely. Now that you have the necessary knowledge about crypto wallets, let me outline my top 11 picks of the best crypto wallets in Canada.

Remember that this list is not in any specific order, and each wallet is the best in providing certain features.

1. Ledger Nano S Plus

Ledger wallets have never been subject to hardware breaches, giving them a clean track record. The Ledger Live app that comes with the wallet allows you to swap cryptocurrencies, purchase them with a debit or credit card, or even stake your crypto assets.

You can also sync your Ledger with MetaMask in order to interact with DeFi protocols while keeping your private keys offline safely. You can’t find another wallet that offers so much value at such a moderate price. This is why I have ranked the Ledger Nano S Plus as the best crypto wallet overall.

2. Metamask

With over 30 million monthly active users, MetaMask is a crowd favorite and considered the go-to for Web3 apps, making it my choice for the best Web3 wallet. MetaMask lets you connect to dApps, store NFTs and crypto assets, and trade cryptos across several blockchains. You can access Metamask using your mobile phone or personal computer.

3. Ledger Nano X

The Ledger Nano X is the best-known hardware wallet in the market, and it comes with many great features. It is robust in terms of security and supports a wide range of cryptos along with Ethereum and Polygon NFTs. You can also connect it to desktop and mobile interfaces.

The Ledger Nano X is Bluetooth-enabled and compatible with Android and iOS mobile devices, so you can quickly manage your crypto assets wherever you are. These are the reasons why I have picked the Ledger Nano X as the best hardware wallet.

4. Coinomi

Coinomi is a desktop and mobile wallet supporting over 1,770 coins and tokens on 125 blockchains. Coinomi supports such an impressive range of blockchains, putting it far ahead of most wallets on the market and making it my choice for the best multi-crypto wallet.

The Coinomi wallet allows you to manage your crypto holdings and NFTs, stake certain assets, and interact with DeFi apps. Coinomi wallet has Decentralized Exchange (DEX) built into the wallet interface, allowing you to swap your cryptocurrency without using a centralized service like Coinbase or Binance.

5. Trust Wallet

Trust Wallet supports 65 various blockchains and all their coins and tokens, saving you the hassle of downloading multiple wallet apps and making it my pick for the best mobile wallet.

Trust Wallet lets you import popular coins and tokens, view pricing information, and receive notifications directly to your mobile device. You can also connect to DEXs and dApps that support the Wallet Connect extension using Trust Wallet.

6. Trezor Model T

The Trezor Model T wins my best pick for experienced users thanks to several advanced features like Multisig, Taproot, Shamir Backup, Time-lock, and Tor Switch, which come together to give you greater control over your funds.

Though this wallet supports altcoins, this wallet is best thought of as a Bitcoin wallet primarily. The Trezor Suite software only supports a handful of popular blockchains, but the Model T supports over 1,800 coins and tokens through third-party software.

7. Exodus

Exodus Wallet is a software wallet available on desktop and mobile that provides access to a wide range of cryptocurrencies on different blockchains.

Many wallets only let you manage coins on a single network, but Exodus supports assets on various blockchains, including Bitcoin, Ethereum, and Solana. This all-in-one functionality makes it my top wallet pick for beginners.

One of the most beginner-friendly features of Exodus is its highly-responsive support team. If you email them for support, you are most likely to hear back within an hour.

8. Atomic Wallet 

Atomic Wallet is my pick for the best desktop wallet since it supports over 500 crypto coins and tokens across over 50 blockchains in a single app – and it’s available on Windows, Mac, and Linux operating systems. Its user-friendly interface makes it a popular choice for both beginners and pros.

You can stake over ten cryptocurrencies, including Cosmos (ATOM) and Cardano (ADA), and the wallet features an NFT gallery for the Solana blockchain. If you run into problems while using Atomic Wallet, you can contact its 24/7 customer support team.

9. Coinbase Wallet

The Coinbase Wallet doesn’t necessarily require a Coinbase account, but verified account holders can connect directly to Coinbase’s exchange to buy crypto. This seamless integration makes it my pick for the best exchange wallet.

You can download the Coinbase Wallet on your mobile device, or you can use its browser extension. Its features and easy-to-navigate user interface are consistent with the Coinbase exchange. The Coinbase wallet is automatically configured to support many blockchains, including Ethereum, Solana, Fantom Opera, and more.

10. COLDCARD Mk4

The COLDCARD Mk4 is one of the most popular hardware wallets among hardcore Bitcoiners since you can only store bitcoin on this wallet. It was designed for Bitcoin maximalists by technologists who advocate for privacy-enhancing technology, also known as Cypherpunks.

The Mk4 doesn’t exactly have all the functionality of Ledger or Trezor hardware wallets. Still, it offers industry-leading security for the private keys to your BTC, which makes it my pick for the best Bitcoin wallet.

11.  Crypto.com DeFi Wallet

Though most known for its global exchange, Crypto.com also offers a non-custodial DeFi wallet with standout features deserving of my pick for best DeFi wallet. Crypto.com DeFi Wallet is available for everyone and is not limited to Crypto.com users, but Crypto.com users can sync the DeFi wallet to the centralized exchange app to simplify transfers between accounts or buy or sell cryptocurrencies easier.

The Crypto.com DeFi Wallet also features in-app swaps via various blockchains, namely Ethereum, BNB Smart Chain, Cronos, and Polygon blockchains. In-app staking and connection to Web3-enabled sites are also possible.

Why do I need a crypto wallet?

A crypto wallet is software that stores the public and private keys required to make cryptocurrency transactions on the blockchain. Crypto wallets are essential to ensure your cryptocurrencies, like Bitcoin and Ethereum, are securely stored on the blockchain.

Do crypto wallets cost money? 

While software wallets are free of charge, hardware wallets do cost money. Depending on the features, hardware wallets range between US $50 to $300.

Which crypto wallet has the lowest fees? 

Apart from the cost of acquiring the wallet (hardware), crypto wallets don’t charge fees. You pay a network fee whenever you interact with a blockchain, which varies depending on the blockchain you use, and this fee is not related to crypto wallets.

How do I buy a crypto wallet? 

Crypto wallets are available for purchase on their respective brand’s websites. You can also purchase crypto wallets through third-party merchants. Crypto software wallets are available to download for free on their respective websites.

How are cryptocurrencies taxed in Canada?

Buying or holding cryptocurrency in Canada does not require you to pay taxes. However, if you are a taxpayer in Canada, you are subject to pay capital gains or business income tax after selling or mining cryptocurrency. The percentage of net taxable profits depends on whether the profits are classified as capital gains or business income.

Are Cryptocurrencies legal in Canada?

Cryptocurrency is legal in Canada, making you eligible to buy, sell, and pay for goods and services using crypto, provided the other side accepts. However, due to the risks involved, the Canadian government has established rules and regulations to protect investors and their money.

Conclusion

Crypto wallet software allows you to interact with different blockchains and securely store your cryptocurrencies. There are many types of crypto wallets out there, but with the list I prepared for you, you can choose the wallet that best fits your requirements.

When choosing which crypto wallet to use in Canada, these are some of the factors you must keep in mind: Security, Accessibility, Supported Coins, Cost, and the User Interface of the wallet.

For those in Canada, I recommend Trust wallet as your go-to software wallet since it is straightforward and supports many blockchains. Trust wallet enables users to make payments quickly through their phones, saving a lot of time.

I would recommend Metamask to participate in the DeFi space (decentralized applications and web3). Through interacting with DeFi protocols, I recently invested $2000 and made $5000 in return, and it didn’t even take me that long.

Additionally, for long-term holdings, which you want to keep highly secure, I would use a Ledger Nano S Plus since it offers so many features at such a moderate price.

You must have noticed that I only chose non-custodial wallets, and this decision may make you wonder why I want full responsibility for my assets. The reason for that is by participating in crypto, we are going to eliminate a lot of intermediaries.

As Vitalik Buterin, the founder of Ethereum, says, “Most technologies tend to automate workers on the periphery doing menial tasks, but blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.”

So by using a non-custodial wallet, you are making sure that your assets are not affected in the case of a centralized exchange collapsing like FTX; you have complete control of your assets.

Also, you are not letting centralized exchanges make fees off of your crypto transactions since you will be interacting with the blockchain directly while using a non-custodial wallet. I hope this article gave you some valuable tips for choosing your crypto wallet. I’m optimistic that this article will help you make an informed decision, even if you have just started your journey in crypto.