IOTA is one of the few cryptocurrencies that does not operate on blockchain. Instead, IOTA uses a distributed ledger – it’s called The Tangle.
However, IOTA still has a wallet. It just operates a little different than the traditional blockchain wallet.
That’s besides the point, though. This article will cover some of the best IOTA wallets and how exactly the IOTA wallet works, whether it’s secure, and why you should use an IOTA wallet.
Why do you need an IOTA wallet?
You might wonder why you need an IOTA wallet if you can store your IOTA on a cryptocurrency exchange.
And sure, you can store your IOTA on a cryptocurrency exchange. It’s not recommended, however, because cryptocurrency exchanges are much more likely to get hacked than The Tangle.
Why is this the case?
Cryptocurrencies are frequently the target of hackers because it’s impossible to trace stolen cryptocurrency. And really, all it would take is a rogue employee to steal the cryptocurrency from an exchange.
There have even been cases of cryptocurrency exchanges being set up with the sole purpose of stealing all deposits once they reach a certain point – it’s called an exit scam.
To make yourself less susceptible to an exit scam or hack, we recommend keeping all IOTA on a wallet where you possess the private keys.
It’s simply safer that way.
Different Types of IOTA Wallets
There are a few different types of IOTA wallets that you can use to store your IOTA. Not all the wallets are recommended for storing IOTA, though.
In fact, we have omitted a few types of wallets from our recommendations because they lack security features.
A hardware wallet is the most secure type of IOTA wallet available for use. For those that don’t know, a hardware wallet is a piece of hardware dedicated to storing cryptocurrency. They will have a keypad on them, which means you get to set your own passcode to access the wallet.
A hardware wallet is the most secure type of wallet that is also convenient to use. You also have the ability to store many different cryptocurrencies on a hardware wallet.
A software wallet is simply software that you download to your computer. The wallet goes on your computer.
As you might have guessed, this is extremely convenient to use and free. The downside with a software wallet is that they are slightly less secure because hackers may have access to your wallet in the event your computer is hacked.
We recommend a software wallet for beginners or those not willing to invest in a hardware wallet.
A mobile wallet is similar to a software wallet, but the software is designed for use on a cell phone rather than a desktop.
These wallets are as secure as a software wallet. And a little more convenient to use because you have access to the wallet on your phone.
Unfortunately, IOTA does not have a suitable mobile wallet at the moment.
A web wallet is the least secure type of cryptocurrency wallet.
We strongly discourage you from using a web wallet because of the lack of security features. These wallets are easy to use, though.
If you do use a web wallet, then we don’t recommend using them for long term use or storing a large amount of cryptocurrency on them.
Best IOTA Wallets
Here are the two best IOTA wallets to use for storing your IOTA coins.
Best IOTA Hardware Wallets
The Trezor hardware wallet is the top hardware wallet in our opinion. Hardware wallets are very secure and easy to use. They can also be used with hundreds of cryptocurrencies, which makes them perfect for those of you that like altcoins.
Ledger Nano (S or X)
The Ledger Nano S or Ledger Nano X are both hardware wallets with IOTA compatibility. They offer slightly less cryptocurrencies than the Trezor hardware wallet, but they both cost slightly less.
If you’re looking for an affordable hardware wallet for your IOTA, then the Ledger Nano S or Ledger X are both excellent options.
Best IOTA Software Wallets
Hardware wallets will cost you a little bit of money. And we understand that not everyone can afford a hardware wallet.
This is why he have chosen the best IOTA software wallets. The official mobile wallet for IOTA is not very good because it’s still in it’s beta stage, so we have excluded it from our list.
Note: Software wallets are slightly less secure than a hardware wallet, but you still should be safe if you keep your private key private and use smart browsing habits on the internet.
Top IOTA Software Wallet for Beginners: GUI IOTA Wallet
The GUI IOTA Wallet is great for beginners for a few reasons:
- It’s easy to install.
- It’s easy to use.
- It’s available on Windows, MacOS, and Linux.
You don’t have to worry about complicated code or GitHub repositories. Simply go to the official website, download the wallet, and run the executable.
This is the wallet we recommend if you have a small to medium amount of IOTA, don’t have a hardware wallet, and want an easy to use and easy to install wallet.
As with most software wallets, the GUI IOTA Wallet is free to install and open source.
Top IOTA Software Wallet for Experienced Users: Nostalgia IOTA Wallet
Are you a knowledgeable computer user? Someone that knows how to code?
If you are, then you should consider downloading the Nostalgia IOTA Wallet. It’s a little more complicated to install because you must pull the source code from GitHub.
However, it does offer more security features than the GUI IOTA Wallet.
It’s also available on Windows, MacOS, and Linux, so you don’t have to worry about any operating system problems.
Keeping Your IOTA Safe
As mentioned previously, you should always use a cryptocurrency wallet for any long term cryptocurrency storage.
Cryptocurrency exchanges just aren’t secure enough to store cryptocurrency for a long period of time.
That said, having a wallet simply isn’t enough to keep your cryptocurrency safe. Here are some additional tips to ensure your IOTA stays safe in your wallet.
Keep Your Private Key Secure
A wallet is only secure as the private key protecting it.
What does this mean?
It means you should not tell anyone your private key. If you do tell someone your private key, then the wallet should be considered not secure and you should use a different wallet.
Use Safe Browsing Habits (Software wallet)
If you have a software wallet, then the wallet is only secure if your computer remains secure. This means that you should avoid downloading risky things on the internet or clicking unsafe links.
A virus or remote access tool (RAT) could allow a hacker to steal all the cryptocurrency from your software wallet.
Don’t Lose Your Private Key
Contrary to popular belief, hacking is not the most common way people lose their cryptocurrency.
Most cryptocurrency users that lose cryptocurrency lose it because they lose their private key or forget it.
Due to this, we recommend writing down your private key on a piece of paper and storing it in a fireproof safe.
If you lose your private key, then you have basically lost your cryptocurrency because you have lost access to it.