If you want to buy ADA, the native token for Cardano, and store it, there are many ways to do it. Many popular wallets allow you to store ADA as they are compatible with the Cardano blockchain.

Here is everything you need to know about storing your ADA securely.

1

What is a Cardano Wallet and How to Set it Up?

Let’s begin by clarifying that there is no one Cardano wallet. Instead, there are multiple wallets in the market that cater to different users. For example, Daedalus, Yoroi, Nami, GeroWallet, and Ledger Nano X, to name a few. 

ADA is a cryptocurrency that runs on the Cardano blockchain. You can’t store it on popular wallets like Metamask or Phantom. You need a wallet compatible with the Cardano blockchain to store ADA. 

Luckily, you have a wide range of options. While some are best for long-term holding, some best suit traders. Some are digital, while others are physical. At the end of the day, it’s all about your priorities. But make sure it is both secure and functional. 

Setting up a Cardano wallet is easy. The steps vary depending on the type of wallet you have gone for. Each wallet comes with tutorials that help users onboard the ecosystem. Plus, most platforms offer technical support via email or chat.

2

The Difference Between Hot and Cold Wallets

Wallets can be divided into two — hot and cold. A hot wallet is connected to the internet, whereas a cold wallet is offline. Let’s take a closer look at what sets them apart.

Hot wallet

Web extension wallets, mobile wallets, and desktop wallets come under hot wallets. Since the assets are stored online, they are more prone to attacks. However, hot wallets are widely used because of their convenience.

You don’t need to shuttle between online and offline to make a transaction with a hot wallet. More importantly, they often come free of cost.

Cold wallet

Cold wallets are physical wallets or hardware wallets. Some examples are paper wallets, physical coins, and secondary offline computers. They are immune to hacking as they are not easily accessible.

Cold wallets are either plugged into a computer or connected using Bluetooth. Asset transactions via cold wallets do happen online. However, they require signing, which is done from the device. The best part is private keys never leave the device.

However, they are costly. You have to pay anywhere from $50 and $200 to buy a cold wallet.

As discussed, cold wallets are safer. If you have a large amount of ADA, it would be wise to go for a combination of hot and cold wallets. Store a major share of the assets in the cold wallet. Then, you can transfer a small amount to the hot wallet for day-to-day transactions.

3

Different Types of Cardano Wallets Available

Listed below are the different types of Cardano wallets:

Digital wallets

These are hot wallets that you can download online and use without paying any additional cost. They can be downloaded to your computer or installed as a browser extension.

Your assets are automatically deposited in a digital wallet when you use a centralized exchange like Binance or Coinbase. There are mobile wallets too, where you can send and receive ADA using QR codes.

If you want to participate in Cardano block validation, some of the best wallets to go for would be Daedalus, Yoroi, and CCVault. Daedalus is a desktop wallet designed for the Cardano ecosystem. It is quite bulky, though.

Yoroi is a lighter option. It comes as a browser extension. You can also download it on your mobile device. For general transactions, GeroWallet, Nami, and Typhon are good options.

Hardware wallets

Hardware wallets like Ledger Nano X, Trezor Model T, Ledger Nano S, and Ellipal Titan offer a safe and secure way to store ADA.

Ledger Nano X is a cutting-edge ADA wallet that supports Windows, Linux, Mac, Android, and iOS devices. It connects via USB cable or Bluetooth.

Trezor Model T, while an excellent option, doesn’t support iOS yet. It comes with a touchscreen. Interestingly, the Ellipal hardware wallet uses Air-gapping instead of USB or Bluetooth.

In case you are wondering, yes, you can use hardware wallets for staking by connecting them with a digital wallet.

Paper wallets

As the name implies, paper wallets are printed paper documents that hold public and private key details. Once you print your keys to a paper wallet, the assets are removed from the network. Therefore, you can no longer use them for transactions.

To access them, you’ll need the keys on the paper wallet. Paper wallets are a cost-efficient way to store ADA offline. However, if you lose the paper wallet, you also lose the assets. You can create an ADA paper wallet using apps like Yoroi Wallet.

Physical coins

Physical crypto coins have been around since the time of bitcoin. Their utility goes beyond storage. They are mostly used as a collectible rather than a crypto wallet.

You will find plenty of online sites that sell ADA physical coins. However, exercise caution when buying.

4

What's the Best Wallet for Safe Storage?

There is no best wallet to store your Cardano (ADA). We recommend using a combination of online and offline wallets. This is the best approach to strike a balance between functionality and security.

If you hold a large amount of ADA, don’t hesitate to invest in a robust crypto hardware wallet. It’ll be worth it. You can transfer your assets to a hot wallet for everyday transactions. 

Regardless of the wallet you go for, ensure the keys are in safe custody. 

FAQ

Which are the best Cardano hot wallets?

Cardano hot wallets are available as web extension wallets, mobile wallets, and desktop wallets. Some good options are Daedalus, Yoroi, CCVault, GeroWallet, Nami, and Typhon. 

Which are the cold wallet options for Cardano?

You can use hardware wallets, paper wallets, physical coins, or secondary offline computers to store Cardano offline. 

Which are the best Cardano hardware wallets?

Some of the best hardware wallets for Cardano are Ledger Nano X, Trezor Model T, Ledger Nano S, and Ellipal Titan.

Which is safer to store Cardano, a hot wallet or a cold wallet?

Cold wallets are more secure as they are disconnected from the internet. 

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