5 Best Custodial Wallets for Your First Altcoins

The altcoin market is booming, with countless coins from all leading crypto trends right now, including the NFT projects, DeFi, metaverse, and more. If you are only getting into crypto now — do not worry, you are still quite early on, and there are plenty of opportunities to be had.

However, before you can get into investing and trading your favorite altcoins, you first need a wallet for the — one that would keep your coins safe and available whenever you need them.

Another thing to note is that it is always a good idea to diversify your portfolio, but using different wallets for different coins is overly complicated and often quite limiting. As a result, we recommend that you seek out an altcoin wallet that can support multiple cryptos – as many as possible, in fact.

So, you need a wallet that can store your altcoins, and you should make sure that it can store as many as possible. The last requirement is that the wallet should be as user-friendly as possible, given that you are still new to crypto, and there are plenty of complicated things for you to learn. With that said, you should try to avoid complications wherever possible.

Fortunately, we have a list of quite a few wallets that fit this description, so if you want to know which ones are the best, here are our recommendations.

Should you choose a custodial or non-custodial crypto wallet?

Before we move on to our list, one last thing to talk about is whether to select a custodial or non-custodial wallet. The difference between the two is that custodial wallets are centralized, or hosted, and they are run by third parties. Meanwhile, non-custodial ones are your own to manage, and you have full control over them. You are also the only one who has that kind of control.

So, if non-custodial wallets seem to be the ones that work in the true spirit of crypto, why would you even consider a centralized, custodial one?

The answer is simple — if you are new, you will need some help before you get the hang of it. You see, when it comes to cryptocurrencies and non-custodial wallets, it is very easy to make a mistake that might cost you all your money.

If you use a mobile wallet and you lose your phone, or if you forget your private keys, or even if you make a single mistake when typing in an address when making a transfer, your coins could be lost forever. These are all the risks that you need to learn to deal with on your own. But, in order to be able to get into the crypto industry immediately instead of spending weeks learning details about it, we recommend custodial wallets as a way of transferring responsibility for some aspects of it to someone else – at least until you educate yourself on the ways of the crypto world a bit more.

With that out of the way, here are the top custodial wallets for your first altcoins that we can recommend right now.

1) Cobo Wallet

The first on the list is Cobo Wallet, which claims that it can “grow and protect” crypto assets of all users. The wallet offers all the top features that you would expect from a safe and secure option, including multi-signature. Two-factor authentication, and alike.

Meanwhile, it supports up to 30 coins, and over 500 tokens at the time of writing. All in all, Cobo is a rather unique wallet, especially due to the fact that it is the first wallet in the world to support pooled staking for multiple projects. This is not something that attracts new crypto users to it, per se, but it is worth keeping in mind, just in case that you ever decide that you wish to give that aspect of the crypto industry a go, as well.

One thing to keep in mind regarding Cobo, however, is that it was reported to have quite a lot of issues with Tron. Apparently, there were multiple cases of Cobo stopping users who own TRX, especially when it comes to those who have less than $30 in this coin. They were not allowed to withdraw their cryptocurrencies. This led to quite a few complaints, so if your intention is to store and manage Tron’s TRX coin, you might want to skip this one.

2) Freewallet: Crypto Wallet

The next on our list is Freewallet, which is actually an entire family of wallets that were founded five years ago, in 2016. In only two years, the company became the third-most-popular wallet provider in the world. Of course, like most custodial wallets, it was facing a lot of mistrust from certain members of the crypto industry, who were keeping a close eye on it, waiting for it to make mistakes.

This has led to its reputation rising and falling quite a lot over the years. Still, it managed to maintain quite a large and loyal community thanks to its features and benefits. After all, the wallet is quite security-oriented, featuring things like two-factor authentication, fingerprint logins, PIN code locks, and alike. The fact that it also supports over 100 coins and tokens also helped, and so did the fact that it offers a built-in exchange, as well as cold storage, which ensures that users’ tokens and coins are as safe as they can be, and out of danger of being hacked.

However, there are also things that some users dislike about it, including the fact that Bitcoin is more expensive when bought through Freewallet’s service. Typically, it costs around 0.5% more than the industry’s average price, which can be quite a lot of money, especially in 2021, when the coin’s price nearly managed to reach $70k.

On the other hand, the project offers free transactions within its own ecosystem, which also reduces the costs of making transactions, so things balance out in the end.

As mentioned, those who have some experience with crypto would typically avoid using hosted wallets due to the fact that there is a company out there that holds their private keys. But, if you are a new user and you could use any help you can get, this one is a pretty good choice.

3) CoinSpot

In the third spot, we have CoinSpot — a hosted multicoin wallet that was created by the CoinSpot exchange, which is quite well known for being a member of the Australian Digital Commerce Association. Its wallet supports over 50 cryptos, it offers transactions in Australian dollars, which is pretty convenient for their Australian users, and it has integrated trading features, meaning that you can trade directly from the wallet.

However, like with all the others, there are a few cons to be aware too, including the lack of multi-signature, but also very high exchange rates that go significantly above the 1% nominal fee that the project is offering, unless when it comes to Bitcoin and Ethereum. In other words, the trading conditions seem to be encouraging BTC and ETH trades, while discouraging everything else.

So, if you are an Australian user who wants to trade BTC and ETH, you might find this wallet to be to your liking, but most others will likely see the drawbacks as a deal-breaker.

4) MetaMask

Nearing the end of our list, we have MetaMask. Now, this is one of the best-known wallets in the world, which is typically used for Ethereum and any coin based on Ethereum’s network. The wallet supports Ethereum’s entire blockchain, its entire ecosystem. That means that users can use it to send, receive, and store assets like ETH itself, but also any ERC-20 token, and even stablecoins like USDT and USDC.

The wallet has such a strong focus on Ethereum that its entire mission is to make Ethereum as easy to use for as many people as possible, and so far, it has done a pretty good job. It is compatible with three major browsers, it allows for easy connections with Ledger devices, and it is considered to be safe, given that there were never any cases of hacking or theft.

The same cannot be said when it comes to phishing attacks, however, and since MetaMask is an online wallet, it is exposed to hackers and scammers 24/7. Plus, as a browser-based wallet, it likely won’t be the first choice for those who are concerned about browsers collecting and storing their data.

5) Holy Transaction

Finally, we have Holy Transaction, a web-only wallet that was designed specifically for those who have zero experience with crypto. In fact, if you are not on friendly terms with technology but you still need or want to get into crypto, then this is the wallet for you.

In terms of benefits, it is quite safe, and it offers a 2FA. On top of that, it also supports 11 networks, which includes the main ones such as Bitcoin, Dogecoin, Tether, Litecoin, and alike. On the downside, however, its users have reported that there is no multi-signature support, and that it doesn’t offer exchange services to US users. On top of that, many have criticized it for not adding some major coins, such as XMR.

All in all, the wallet is not bad, but it does have some work to do in order to satisfy the needs and requirements of its clients.

Conclusion

The crypto world is massive, and filled with opportunities. On top of that, it is constantly developing and growing further, with new sectors popping out every year now, and offering new products and services, as well as new opportunities for growth and advancement. But, in order to get in on that action, one must have an advanced cryptocurrency wallet, but also one that is easy to use, and that has as many assets as possible. Hopefully, this list of recommended wallets will be of help to you, so do check them out if you are looking for a custodial app of this kind.