Caring for and keeping your cryptocurrency investments safe has never been more important than it is today. Thankfully, there are many established organizations and startups that have provided the public with some great cryptocurrency storage options you can count on. And if you are a lucky owner of IOTA coin, you are probably looking for the best IOTA wallet to store your digital treasures in a safe place. However, there’s a limited range of wallets available for the relatively new IOTA cryptocurrency, so read on to find out which IOTA-compatible wallet is right for you.
When you deposit funds, you are trusting that the exchange will protect them. The biggest risk about trusting a company that uses centralized servers is that if they get hacked, then the entire database is at risk. As well as your cryptocurrency. That’s why it is much safer to store your digital money in a wallet, but not leave it on the exchange after purchasing it.
IOTA wallet types
When getting started with IOTA, it can be very hard to understand the difference between the types of wallets.
Full Wallet (GUI): This is an IRI (IOTA Reference Implementation) running and being accessed locally via a GUI. Any full node needs to be connected to neighbors via a static IP in order to function.
Headless Node: A full node running in your local console. You can access it via a simple UI called Nostalgia in your browser. It has the same requirements as a GUI full node, but has the advantage that you can open multiple Seeds (Accounts) at the same time.
Light Wallet (GUI): A local interface that accesses a full node (IOTA Node) in a different environment (e.g a node on a server; Please note: Your Seed NEVER leaves your computer).
The GUI wallet makes it possible to be used either as a Light Wallet or as a Full Wallet. If used as a Light Wallet, you are basically interacting either with your own hosted full node, or with the full node of a third party (often referred to as “light wallet provider”).
All sensitive functions (such as hashing and signing) happen client side. This means that if you interact with a light wallet provider, your seed (like your seed generator) or your private keys, never leave your possession and the light wallet provider cannot steal your funds. However, when interacting with a third party, it should be noted that there are different security assumptions related to that, especially when making state-related API calls (such as getBalance and getInclusionStates). If your usage requires high security, make sure to use a quorum of Light Wallet providers.
|Web||A web wallet is the least secure wallet on the market and it simply means you can only access your coins through an internet browser. Although web wallets are the most at risk, they are also the most convenient. This means that if you need to quickly send someone some funds, it is best to use a web wallet.||GUI IOTA Light Wallet, CarrIOTA|
|Mobile||A mobile wallet is when you hold your coins on your mobile device. Sending and receiving funds is very convenient. Not only do you have instant access to your coins, but you can also use the features of QR scanning. For example, in Japan you can use your phone instead of the credit card to pay with the cryptocurrency at the checkout.
But if somebody steals your phone, they might be able to access your coins as well.
|IOTA Wallet, Nelium, Trinity|
|Desktop||It can be more secure than a mobile wallet, however, it is slightly less convenient. When you use a reputable desktop wallet, your private keys are not held by any third party servers, meaning that only you have access to them. At the same time, this also means that if you misplace them, your coins will be gone forever! Also, if you forget to back up your wallet and your device breaks, you could lose your IOTA coins.||Nostalgia IOTA Light Wallet, IOTA Desktop wallet, Trinity
|Basically, this is an offline wallet in a physical hardware device, meaning that it is only ever connected to a server when you plug it in. To authenticate a transfer of funds, you would need to enter the pin code onto the hardware wallet. Even if you had your wallet stolen, the hackers wouldn’t be able to access your coins. Instead, you could recover them by using your password recovery phrase!
And you will actually need to pay for your IOTA hardware wallet, but if you are looking to hold a large amount of coins, it is well worth the investment.
|Ledger Nano S IOTA
|Paper||IOTA paper wallet is a way to keep your private keys offline. In reality, it is just printing them on to a piece of paper! Just remember to keep your IOTA paper wallet safe, as it is vulnerable to fire damage etc. — consider laminating it!|
IOTA Light Wallets
A Light Wallet is the easiest and the best wallet to send and receive IOTA coin. You have two options to run one: GUI Light Wallet and Nostalgia Light Wallet.
- GUI Light Wallet
The GUI IOTA light wallet is perfect for beginners as it is really simple to install and it can be both your IOTA wallet for Mac and IOTA wallet for Windows on your choice. But this particular IOTA wallet is not compatible with mobile devices. This lightweight wallet is incorporated into IOTA’s graphical user interface (GUI) and allows fast access to your IOTA holdings. If you like the sound of this IOTA wallet, you can download it.
During the setup process you will be asked if you want to install the full or light node. If you are a beginner and only looking to keep things simple and secure, then it is best to choose light node, as it allows you to use IOTA without the need to find and connect to neighbors via a static IP.
However, this wallet doesn’t have a great option for user-friendliness, while even the choice between a light and full node during the setup process may be confusing for cryptocurrency newcomers.
Nostalgia IOTA Light Wallet
The Nostalgia IOTA Light Wallet is available to download on Windows, Mac and Linux devices, making it a desktop IOTA light wallet.
It is known to have really good security features, however, it is quite complex to use. So, unless you have a good understanding of basic coding, this might not be the best IOTA wallet for you. You will need to connect Nostalgia Light Wallet to a Pow-enabled server on which IOTA is running. All you have to do is open the nostalgia.html file in an html editor. To do this, you can use software called Text Wrangler. While the full process is explained in this IOTA tutorial, but it’s likely to be too complicated for tech novices, who may want to explore other options. But if you are able to use Nostalgia, it will give you the fastest access to the IOTA network, making it really convenient if you need to make quick payments.
Best wallets for IOTA
If you are fortunate enough to have an Android phone, you can download the official IOTA wallet for Android by visiting the Google Play store. This is of course a mobile wallet, which gives you lots of convenience on the go.
All you need to do is download the official app and you can send, hold or receive IOTA (MIOTA) coins wallet to wallet. Other features include a QR scanner, an IOTA-to-Fiat currency exchange rate and extra password tools.
However, if you are an iPhone owner, the app will not available for your IOS device.
New IOTA wallets (coming soon)
Yes, the number of IOTA wallets available at the moment is very limited. Although there are a few new ones that are currently in development. So what are the new offerings?
The Trinity wallet, previously known as the ‘UCL Wallet’, was a project started as a Master’s thesis by University College London student Charlie Varley. The intention was to develop a cross platform mobile application that would serve as an alternative IOTA wallet for the community. Over the past few months, developers from the community have joined Charlie in the development of the wallet. This has allowed for a number of additional features to be included and has increased the speed of development significantly.
The Trinity Wallet is set to be an extension of the current IOTA wallet, but with a couple added features, mostly related to the ease-of-access prerogative the company seems to be pushing.
The Trinity Wallet app (iOS and Android) and desktop have already started beta testing. So you can help the wallet to become better buy downloading and testing it. The Trinity Wallet is for many IOTA supporters the hope of a more user-friendly, safe and simpler solution compared to the IOTA Light Wallet.
Nelium is another user-friendly wallet that is currently being developed. Once it is ready for release, this IOTA wallet will be compatible with both Android and iOS, making it a mobile-only wallet. The main benefits of using the Nelium wallet is that it will be absolutely perfect for beginners. Nelium practically eliminates the need for manual re-attaching, re-broadcasting, node changes, manual address exchange, manual bookkeeping, and so on streamlining the transfer process. Do you want to test it?
CarrIOTA is designed as a finance manager for IOTA. Its developers claim it will allow users to manage a single wallet, a household or an entire business. It can be run as a stand-alone app on your computer or a web-app on your home server, a single-board computer (SBC) in your safe or a cloud service accessible from anywhere through a virtual private network.
A planned reporting feature opens a door to powerful financial insights for total transparency. Additional future exchange service will make it easy to load IOTAs or withdraw funds from your wallets using your bank or PayPal account.
Ledger Nano S IOTA
In April 2018 the IOTA team announced that their cryptocurrency is soon to be compatible with the Ledger Nano S wallet!
This will be the most secure way to store your IOTA coins, as even if you have your hardware wallet stolen, you can still regain access to your funds. Ledger Nano S is a IOTA, Bitcoin, Ethereum and Altcoins hardware wallet, based on robust safety features for storing cryptographic assets and securing digital payments. It connects to any computer (USB) and embeds a secure OLED display to double-check and confirm each transaction with a single tap on its side buttons.
It is important to remember that you should only ever purchase the Ledger Nano S from the official website, which can be accessed by clicking this link.
Tips for safety storing your IOTA
- Do not store IOTA on the exchange (exchanges have been hacked before and probably will be hacked in the future).
- Don’t forget to back up your wallet so you can always recover your funds if something goes wrong.
- Create a reliable password that will consist of upper and lower cases, letters, numbers and special symbols
- Download IOTA wallet only from official websites.
- Store your private keys in a secure place, do not share with anyone.
- Regularly update OS and antivirus on your PC/Mac.
Although the IOTA team first started working on their project back in 2015, there are still only a few wallets to choose from. Yes, it’s really limited at the moment, but the good thing is there are some cool wallets on the way.
I really like the sound of the Ledger Nano S IOTA wallet, as it is the safest place to store your coins! And what wallets do you normally use?