Your Crypto Wallet Guide For 2025

Everything You Need to Know About Crypto Wallets

Securing crypto properly is crucial, and that’s why having the correct knowledge and understanding of crypto wallets is vital. Crypto wallets are important tools. The reason being is because you store, send and receive your blockchain assets. 

But with various types available, from EVM-compatible wallets to non-EVM options, and from hot wallets to cold storage, understanding the differences is key. 

This guide breaks down the different types of crypto wallets, their purposes, and how to choose the right one for your needs.

What is a Crypto Wallet?

A crypto wallet is a digital tool that stores the private keys needed to access and manage your cryptocurrency on the blockchain—it does not actually hold the cryptocurrency itself. These private keys act as proof of ownership and allow you to send, receive, and store digital assets securely.

Think of your crypto wallet like a digital keyring that holds the keys to different bank vaults (your blockchain accounts). Without the right key—your private key—you cannot access your funds.

Crypto wallets come in various forms, from hardware devices to mobile applications, each offering different levels of security and convenience.

Types of Crypto Wallets

Now let’s break down the different types of wallets along with their characteristics:

EVM-Compatible Wallets

EVM stands for Ethereum Virtual Machine, a computing environment that allows smart contracts to run on the Ethereum blockchain and other compatible blockchains. EVM-compatible wallets are designed to interact with these ecosystems, making them essential for anyone participating in decentralized applications (dApps), DeFi protocols, or token swaps on EVM networks.

‍Popular EVM Wallets:

  • MetaMask: A browser extension and mobile app, MetaMask is widely used for its seamless integration with Ethereum-based dApps. 
  • Trust Wallet: A mobile wallet that supports multiple blockchains, including EVM-compatible ones like Ethereum and Binance Smart Chain.

Key Features:

  • Support for multiple EVM chains (Ethereum, Binance Smart Chain, Polygon, etc.)
  • Ability to interact with dApps directly
  • Storage of ERC-20 tokens and NFTsNon-EVM Wallets

Non-EVM Wallets

Non-EVM wallets are designed for blockchains that don’t use the Ethereum Virtual Machine. These wallets cater to ecosystems like Solana, which has its unique architecture and smart contract platform.

‍Popular Non-EVM Wallets:

  • Phantom: The go-to wallet for the Solana blockchain, offering an intuitive interface for managing SOL tokens and interacting with Solana-based dApps. Although currently Phantom supports EVM chains, at its core, it is a Solana-native wallet. 
  • Keplr: A wallet designed for the Cosmos ecosystem, supporting IBC-enabled blockchains.
  • Trust Wallet: A super adaptable wallet that covers non-EVM blockchains.

Key Features:

  • Tailored for specific blockchain ecosystems
  • Support for native tokens and unique token standards (e.g., SPL tokens on Solana)
  • dApp integration within their respective ecosystems

Hot and Cold Wallets: Securing Your Crypto

‍Once you've identified whether you need an EVM or non-EVM wallet, the next consideration is how you want to store your assets: hot wallets or cold wallets. This distinction is based on whether the wallet is connected to the internet.

‍Hot Wallets

‍Hot wallets are connected to the internet, making them convenient for frequent transactions. They are typically software-based, including mobile apps, desktop applications, and web extensions. Both EVM and non-EVM wallets can function as hot wallets.

ExamplesExamples of Hot Wallets:

Key Features:

  • Quick and easy access to funds
  • Suitable for daily trading and DeFi activities
  • Higher risk of exposure to online threats like hacking

Cold Wallets

‍Cold wallets, on the other hand, are offline storage solutions, offering a higher level of security by keeping your private keys disconnected from the internet. Both EVM and non-EVM assets can be stored in cold wallets, making them ideal for long-term holders who prioritize security over convenience.

‍Examples of Cold Wallets:

Key Features:

  • Enhanced security against online threats
  • Ideal for storing large amounts of crypto for the long term
  • Less convenient for frequent transactions

Hardware Wallets: The Ultimate Security

‍For those prioritizing maximum security, hardware wallets are the gold standard. These physical devices store your private keys offline, protecting them from malware and hacking attempts. Hardware wallets can support both EVM and non-EVM assets, making them versatile for various blockchain ecosystems.

‍Popular Hardware Wallets:

  • Ledger Nano S/X: Widely recognized for its robust security features and support for a broad range of cryptocurrencies.
  • Trezor Model T: Known for its user-friendly interface and top-tier security protocols.
  • SafePal S1: A hardware wallet with air-gapped signing mechanisms, ensuring complete offline security.

Key Features:

  • Offline storage of private keys for maximum security
  • Multi-currency support across EVM and non-EVM chains
  • Physical confirmation required for transactions, adding an extra layer of protection
  • Resistant to malware and phishing attacks

Crypto Wallet Seed Phrases: Protecting Your Keys

‍When setting up any crypto wallet, you’ll be given a seed phrase (also called a recovery phrase or mnemonic phrase). This is a series of 12-24 words generated by your wallet that serves as the master key to your funds.

Choosing the Right Wallet for You

‍Selecting the right wallet depends on your needs and how you plan to use your cryptocurrencies.

  • Do you trade crypto daily? → Use a hot wallet like MetaMask.
  • Are you holding crypto long-term? → Use a cold wallet like Ledger.
  • Do you need a mobile wallet for small amounts? → Use Trust Wallet or Phantom.

Top Security Tips

‍One of the most crucial steps is backing up your seed phrase and storing it offline—never on a phone or computer—to prevent unauthorized access. 

Additionally, users should never share their private key or seed phrase, as anyone requesting this information is attempting to steal their funds. 

Enabling two-factor authentication (2FA) on exchange wallets provides an extra layer of protection against unauthorized logins. 

Finally, staying vigilant against phishing scams is essential; always double-check URLs before entering wallet information to ensure the website is legitimate. 

‍Check Out These Wallet Tutorial Videos

‍If you need some assistance to set up a crypto wallet then have no fear! Below you can find tutorial videos on all of the wallets we’ve listed in this crypto wallet guide: 

Keeping Your Assets Secure

‍Understanding the differences between EVM, non-EVM, exchange, hot, cold, and hardware wallets empowers you to make informed decisions about how to manage and protect your digital assets. Choosing the correct wallet type is essential when on-chain.

No one’s limited to the different wallet types, therefore if you need multiple types of wallets then don’t hold back!

If you have any questions about wallet types for your experience with ChainGPT’s suite of AI powered blockchain tools, you can contact our team on our official Telegram group.

‍Crypto Wallet Glossary 

‍Here are some of the important crypto wallet related words throughout the blog and their meanings: 

  • Crypto Wallet – A tool that stores the crypto’s private keys. 
  • Seed Phrase – A set of words that allows you to recover your wallet if lost.
  • Private Key – A secret code that proves ownership of your crypto.
  • Public Address – The address you share with others to receive funds.
  • Gas Fees – A small transaction fee paid to the blockchain network when transferring crypto.
  • EVM Wallet – A wallet that operates on Ethereum Virtual Machine (EVM) networks e.g Ethereum and Binance Smart Chain.
  • Non-EVM Wallet – A wallet that operates on networks like Cosmos that are not compatible with EVM.
  • Cold Wallet - They keep your assets offline, adding further security - e.g Ledger 
  • Hot Wallet - They keep your assets online and more accessible e.g an Exchange Wallet