The bonus of the article is a list of the best Web3 wallets.

Reading time: about 7 minutes

In this article:

• What is Web3?
• What is a Web3 wallet, and how does it differ from a crypto wallet?
• How to create a Web3 wallet?
• Types of Web3 wallets.
• Benefits of Web3 wallets.
• Factors to consider when choosing a Web3 wallet for business.
• Examples of popular Web3 wallets for businesses.

What is Web3?

Web3 is a concept of a new, third generation of the Internet, more advanced than Web2 and Web1. Web3 is opposed to the World Wide Web Web2, which operates based on centralized platforms for communication between users.

The new version is important for solving decentralized observations and cryptocurrencies on the Internet; Web3 lets create an independent and transparent financial ecosystem; in which anyone can be a buyer and seller, working in an environment without intermediaries. The emphasis is decentralization: Web3 launches the game so that all platforms control immunity to the functions of persons, the user community. When platforms are transferred to everyone, it becomes easier to normalize the operation, and it is safer to control the violation.

Web3 also has a lot of focus on security, privacy, machine learning, and artificial intelligence.

What is a Web3 wallet, and how does it differ from a crypto wallet?

A Web3 wallet is required to access the Web3 space and cryptocurrency. Web3 wallet is essentially the same crypto wallet but with more features. Both tools allow owners to send, receive, and store assets with virtually no limits, have user-friendly interfaces, and offer high levels of security and hot and cold storage features (more on that in a moment).

There are many common features, but it is still wrong to call the Web3 wallet a crypto wallet. While a crypto wallet aims only to store cryptocurrency, the Web3 wallet lets work with cryptocurrency, NFT tokens (non-fungible tokens) and other digital assets. Using the Web3 wallet, you can control intangible assets and work with decentralized applications on various blockchains.

How to create a Web3 wallet?

The first step in creating a wallet is registering on the platform and receiving a private key or seed phrase. This data is unique and cannot be changed, so take care not to lose it (according to complaints on the Internet, this is a common problem).

All popular applications have fairly universal interfaces: as soon as you enter the wallet, you will see all the assets that are placed in it. Here you can send or receive digital assets from other wallets, connect to the blockchain or trading platform, and purchase digital assets.

Types of Web3 wallets

Let’s first understand what they are.

Cold wallets

They aim to store digital assets offline when not in use. This is a popular option recommended for both: those who sell and buy assets frequently and long-term investors who trade less often. Due to the fact that the wallet is not active most of the time, it is less prone to fraud and hacker attacks.

Cold wallets are divided into hardware and paper ones.

Hardware wallets

This is the most famous crypto wallet option. It stores digital assets on an external device, usually a USB drive. When you need to use your wallet, connect the USB flash drive to your computer or laptop. The small size and similarity to a flash drive are both an advantage and a disadvantage of this type of wallet: an inconspicuous appearance does not attract too much attention of pickpockets, but it is very easy to lose such a wallet. No one can steal assets without a PIN, private key, or seed, but you most likely won’t be able to recover your device if you lose the media.

It is better not to store a hardware wallet with the keys to your house or car; the ideal option is to put it into a safe.

Best cold hardware wallets: Trezor Model T, Ledger Nano S, Ledger Nano X.

Hardware wallet Ledger

Paper wallets

These are documents with a unique code for representing the cryptocurrency: QR or a long chain of numbers and letters. Such wallets are usually generated and stored in a safe before being sold.

Creating a paper wallet will first require selecting a reliable wallet generator and generating private keys with it. These tools are usually open source, so read the reviews carefully for the one you use.

Paper wallets are safe because the data is not stored on the Internet but on a physical medium. For the same reason they are not for fast transactions and applications. Such wallets are often used as a backup copy of a hardware or desktop wallet.

Hot wallets

Always connected to the Internet. You can sell assets and deposit funds to buy NFTs or cryptocurrencies through an application on your smartphone or browser, which is more convenient than with the cold version.

Most crypto wallet platforms promise security, but having assets constantly connected to the Internet makes them more vulnerable to hackers.

Hot wallets are divided into browser, mobile and desktop ones.

Browser Wallet

It looks like a web browser and is an extension for it. Allows you to connect to decentralized applications on various blockchains through a browser.

An example of a browser wallet

Popular hot browser wallets: MetaMask, Coinbase Wallet, Argent X Wallet.

Desktop Wallet

Allows you to buy, sell, trade, and earn with digital assets through a computer program.

An example of a desktop wallet

Best hot desktop wallets: Exodus, Frame.

Mobile Wallet

As the name implies, work with digital assets takes place directly in a mobile application on a smartphone.

Mobile Wallet Glow

Best hot mobile wallets are: Glow, Rainbow, Argent.

Benefits of Web3 wallets

Convenient interfaces

The developers of both hot and cold wallets are interested in you staying on their platform and not being afraid of unfamiliar buttons in the scary new crypto world. The interface of any of the top wallets will allow you to set up an account and start trading assets within minutes without any technical knowledge.

No limits

The Web3 marketplace is decentralized, which means that while many wallets are created and hosted by third parties, it’s entirely up to you to control where and how much you sell, buy, and send assets to.

Anonymity

Sending crypto assets leaves no paper or digital footprint. If you want to transfer a sold asset, you enter the wallet address with no other personal information.

Safety

Without private keys or a seed phrase hackers cannot access hot wallets. Without storage media they cannot access cold wallets.

Strong communities

Cryptoworld is a gathering of enthusiasts, so you will find the answer to any question you have in online forums and helpful videos.

Factors to consider when choosing a Web3 wallet for business

When choosing a Web3 wallet for business, there are several factors to consider. Security features should be a top priority, as the wallet will be used to store valuable digital assets. Ease of use is also important, as employees may need to access the wallet regularly. Compatibility with different blockchains is crucial, as businesses may need to work with multiple blockchains. Finally, integration with existing business systems is essential for seamless operation.

Examples of popular Web3 wallets for businesses

There are several popular Web3 wallets that are suitable for businesses. We’ve already mentioned them in the article when considering their types. 

• Trezor is a hardware wallet that offers advanced security features and compatibility with multiple blockchains. 
• MetaMask is a browser extension wallet that is easy to use and integrates well with existing business systems. 
• MyEtherWallet is a software wallet that allows the users to store Ethereum and other ERC-20 tokens securely. 
• Ledger is another hardware wallet that offers high-level security and compatibility with multiple blockchains.

Conclusion

Choosing the right Web3 wallet is essential for businesses looking to develop blockchain-based programs. It is important to consider factors such as security features, ease of use, compatibility with different blockchains, and integration with existing business systems when making a decision. By carefully selecting the right Web3 wallet, businesses can ensure the security and efficiency of their blockchain-based programs.

If you need help implementing your idea of developing a Web3 wallet and making business with it, contact us and get a free consultation from our team.