6 min read

Overview

Web3 wallets are essential tools for anyone interacting with cryptocurrencies or blockchain-based applications. They allow users to store, manage, and transfer digital assets securely. With the rise of decentralized applications (dApps), the need for secure and user-friendly Web3 wallets has become more important than ever.

In this guide, you’ll learn what a Web3 wallet is, the different types available, and how to keep them secure.

What is a Web3 Wallet?​

A Web3 wallet is a digital wallet designed to interact with decentralized applications (dApps) on blockchain networks. These wallets store digital assets like cryptocurrencies, NFTs, and tokens, and provide the necessary tools for managing blockchain identities and signing transactions.

Unlike traditional financial apps, Web3 wallets enable direct interaction with smart contracts and blockchain protocols, making them a cornerstone of decentralized finance (DeFi) and Web3 ecosystems.

Types of Web3 Wallets

There are three main types of Web3 wallets: non-custodial, custodial, and smart contract wallets.

Non-custodial Wallets

Non-custodial wallets, also known as self-custody wallets, give users complete control over their private keys and assets. They use a public and private key pair.

• Public key: Your address on the blockchain, a unique identifier used to receive cryptocurrency or other assets on the network. It is generated from a corresponding private key.
• Private key: A secret cryptographic key that allows you to access and authorize transactions. The private key is used to sign transactions sent on the blockchain, ensuring that only the private key owner can access and control the associated assets.

To understand public and private keys, think of your house. The public key is like the address to your house. Anybody can know it or look it up. The private key is like the key to your house. You want to keep it safe and secure because losing access to it will result in unauthorized people being able to access your house.

Non custodial wallets can be browser extensions, mobile apps (hot wallets), or physical hardware devices like Ledger or Trezor (cold wallets). While they offer maximum control, they also put the responsibility of security entirely on the user.

Custodial Wallets

Custodial wallets are managed by a third party—typically an exchange such as Coinbase or Binance. These services hold your private keys and often require KYC verification. Custodial wallets are generally easier to use, offering features like account recovery similar to traditional email providers.

However, they require trust in the custodian. Users looking for a simple onboarding experience might prefer this option, especially when first exploring Web3.

Want to go deeper? Check out this QuickNode guide on non-custodial and custodial wallets.

Smart Contract Wallets

Smart contract wallets are managed by a smart contract on a blockchain network. On Solana, these smart contracts are referred to as programs so we'll be using these terms interchangeably. These wallets allow for advanced features like:

• Multi-signature support - providing increased security by requiring multiple approvals for a transaction.
• Custom recovery options - making it possible for any arbitrary logic in the smart contract wallet to allow the recoverability of funds, for example two-factor authentication.
• Transaction batching - batch transactions together, for example, approve and transfer a token in one step.

These wallets are ideal for individual users, businesses, or organizations who want flexible controls over their funds.

To go deeper check out our guide on smart contract wallet security.

Which Web3 Wallet Should You Use?

Choosing the right Web3 wallet depends on:

• Control: Do you want to hold your own keys?
• Security needs: Do you need multi-sig or recovery options?
• Experience level: Are you a beginner or an advanced developer?
• Trust in third parties: Are you comfortable with a custodian managing your keys?

Non-custodial wallets are recommended for users who want complete control over their assets. Custodial wallets, on the other hand, are better suited for users who are new to the space and want a simple way to manage their assets. Smart contract wallets are ideal for businesses or organizations that require multiple parties to approve transactions.

Popular Web3 Wallets

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Please note that this is not an exhaustive list and QuickNode does not endorse any specific wallet. Users should conduct their own research to determine which wallet best suits their needs and security requirements.

There are many Web3 wallets available today, each with its own features and functionalities. Here are some of the most popular Web3 wallets:

• MetaMask: A popular non-custodial wallet that allows users to interact with dApps on EVM-compatible blockchains (e.g., Ethereum, Polygon, Optimism, Avalanche, etc.)
• Phantom: A popular non-custodial wallet that makes it safe & easy for users to store, buy, send, receive, swap tokens, and collect NFTs on multiple blockchains (e.g., Solana, Ethereum, Polygon).
• MyEtherWallet: A non-custodial wallet that allows users to store and manage their assets on EVM-compatible blockchains
• Trust Wallet: A non-custodial wallet that allows users to store and manage their cryptocurrencies on mobile devices.
• Torus: A non-custodial wallet that offers a simple and user-friendly interface for managing cryptocurrencies and digital assets. It uses a unique login system that allows users to sign in with their Google, Facebook, or other social media accounts, eliminating the need to remember complex private keys. Torus supports multiple EVM-compatible blockchains.
• Coinbase Wallet: A non-custodial wallet that allows users to store and manage their cryptocurrencies, including those not supported by Coinbase. Coinbase Wallet supports EVM-compatible blockchains such as Ethereum, Polygon and non-EVM blockchains such as Solana.
• Coinbase: A custodial cryptocurrency exchange platform that allows users to buy, sell, and trade various cryptocurrencies.
• Binance: A custodial cryptocurrency exchange platform (one of the largest) that allows users to buy, sell, and trade various cryptocurrencies with low trading fees and advanced trading features.
• Safe (previously Gnosis Safe): A smart contract wallet that allows users to set up multi-sig wallets for added security. Safe has grown to support several EVM blockchains.
• Argent: A smart contract wallet that offers an easy-to-use interface and unique features, such as guardian accounts, allowing users to add trusted friends or family members to help recover their wallets in emergencies.
• Squads: A multi-signature wallet that helps teams manage various on-chain assets intuitively, securely, and in a decentralized way. Supported on Solana.
• Bitget Wallet: A multi-chain wallet that offers access to Swap, NFT Market, dApp Browser, and Launchpad functionality right within the wallet.

These are just a few of the many Web3 wallets available. It's important to do your research and choose a wallet that meets your needs and provides the level of security and functionality you require.

Wallet Security Best Practices

Web3 wallets hold valuable digital assets and are a target for hackers. To keep your wallet secure, here are some best practices to follow:

• Keep your private keys safe: Your private keys are the key to your wallet. Store them in a secure location, and never share them with anyone.
• Use two-factor authentication (2FA): 2FA adds an extra layer of security to your wallet. Enable it whenever possible. Note this is mostly geared toward Custodial wallets.
• Keep your software up to date: Ensure your wallet software is always up to date, as updates often include security fixes.
• Use a hardware wallet: Hardware wallets are physical devices that store your private keys offline. They are considered the most secure way to store your digital assets.
• Beware of phishing attacks: Be wary of unsolicited emails or messages asking for your private keys or personal information.

By following these best practices, you can significantly reduce the risk of losing your digital assets to hackers. We also highly recommend reading this QuickNode guide - An Introduction to Crypto Wallets and How to Keep Them Secure for additional tips on keeping your wallet secure.

How QuickNode Supports Web3 Wallets

QuickNode provides the reliable, low-latency blockchain infrastructure that powers many of today’s leading wallets. With access to 65+ blockchains, our tools help developers:

• Send transactions faster
• Monitor wallet activity in real time
• Leverage APIs for dApp integration
• Analyze wallet interactions with powerful RPC endpoints

Whether you're building a wallet or integrating one into your app, QuickNode delivers the infrastructure to make it fast, secure, and scalable - you can try it free today.

Final Thoughts

Web3 wallets are an essential tool for anyone interacting with blockchain-based applications. They provide a secure way to store, manage, and transfer digital assets while giving users control over their private keys. When choosing a Web3 wallet, consider your level of expertise, the amount of control you want over your assets, and your trust in third parties. By following best practices, you can keep your Web3 wallet secure and your digital assets safe.

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