Best ERC-20 Compatible Wallet Options
In a rapidly expanding blockchain technology world, ERC-20 tokens are not slowing down. As of January 13, 2022, there are 486,617 tokens on the Ethereum blockchain, according to the list provided by Etherscan.
In this article, we will highlight some of the best ERC-20 compatible wallets. Before then, it is necessary to have a foundation for these terms.
What Is ERC-20?
ERC-20 is an approved framework for proposing Ethereum (ETH) network improvements. The framework determines the rules that all ERC-20 tokens should follow before running on the blockchain. "20" is the proposal identifier, while "ERC" stands for "Ethereum Request for Comment."
What Are ERC-20 tokens?
ERC-20 tokens are blockchain-based assets that hold value, are created, stored and hosted on the Ethereum blockchain. These tokens are like every other blockchain asset except that they run on the Ethereum network rather than a new blockchain system. They are also sent, received and used for transactions via Ethereum addresses. To conduct such transactions, a "gas fee" is required to cover the cost of computational resources used.
Popular ERC-20 tokens are Tether (USDT), USD Coin (USDC), Tron (TRX), Fantom Token (FTM), Binance Coin (BNB), and many more.
However, you can only purchase, store, send, and receive these ERC-20 standard tokens into a compatible wallet. While many wallets are available, not all of them are compatible with ERC-20 or guarantee the safety of your assets. Here are some of the best ERC-20 compatible wallets handpicked by the BitPrime team.
ERC-20 Compatible Wallets
MetaMask is undoubtedly one of the most popular ERC-20 wallets because of its simplicity and device compatibility. Metamask is available for Chrome, Firefox, Edge, and Brave as a browser extension. It's also available as a mobile wallet for iOS and Android users.
In addition to storing, sending, and managing your ERC-20 tokens, you can smoothly switch between MetaMask network browsers and the Ethereum network. You can also access Ethereum DApps and smart contracts securely.
2. Atomic Wallet
Atomic Wallet is a non-custodial cryptocurrency wallet that supports all ERC-20 tokens and is entirely free to use. It works with various operating systems, including macOS, Windows, Linux, Android, and iOS. The wallet's most exciting and well-known function is inbuilt trading. The Atomic wallet's user interface is also straightforward.
3. Trust Wallet
A purely mobile wallet, Trust Wallet supports Ethereum coins and all ERC-20 tokens created on the Ethereum blockchain. The security keys are stored on your device to provide an extra layer of security against hacking attempts or forgetfulness. Your data remains private to keep you anonymous. You can download Trust Wallet from Google Play or the iOS App Store.
MyEtherWallet is an Ethereum-based blockchain wallet renowned for securely holding Ether and other ERC-20 tokens. Using this web-based wallet, you can access the Ethereum blockchain.
Its distinguishing feature is the compatibility with hardware wallets like the Ledger Nano S. Offline transactions are possible with this functionality.
Although the user interface of MyEtherWallet is relatively user-friendly and enables token conversion via swapping, it’s recommended for crypto experts rather than newbies.
Coinomi supports more than 17,000 digital assets, including all ERC-20 tokens. It is one of the oldest crypto wallets on the market. Like Trust Wallet, private keys are saved on the user's mobile device rather than Coinomi servers.
You create a password requested every time you open Coinomi. If you lose the password, enter the recovery seed phrase instead, and it will instantly restore your wallet. The password creates an extra security layer. Coinomi supports Windows, Mac OS X, and Linux.
Ledger hardware wallet owns up to its reputation with a bold slogan of "it's your money, own it". Both wallets from Ledger - Nano S and Nano X are famous for their advanced security and compatibility. They support more than 1,800 coins and tokens - including the ERC-20 ones.
While both wallets offer security and compatibility, there are noticeable differences.
- Like cold wallets, private keys are stored on the chip of both hardware wallets giving an enhanced form of security. In addition, both wallets use tamper-proof secure element (SE) chips and a custom operating system known as BOLOS.
- Nano X has a bigger size and weighs more than Nano S. However, this increase in size offers users higher screen resolution, ease of use and larger buttons.
- Both wallets support over 1,800 coins and tokens. Nano S users can use three apps simultaneously (uninstalling & installing as needed), whereas Nano X offers up to 100 crypto applications.
- Nano X offers a longer-lasting battery compared to Nano S.
- In addition to the highlighted differences, Nano X supports desktop, iOS and Android. It also costs double the price of Nano S, which only supports iOS in consultation mode via Ledger Live.
Exodus boasts of supporting over 150 cryptocurrency assets, including ERC-20 tokens. The wallet can be downloaded as an application for Android, iOS, Linux, Mac and Windows users. Exodus is very easy to set up and offers responsive customer service. Exodus offers password and biometric fingerprint 2FA.
Other ERC-20 Compatible Wallets Are:
- Enjin wallet - available on iOS and Android.
- O3 wallet - available on Android, iOS, Mac OS X, and Windows.
- Coinbase wallet - available on Android, iOS and Chrome.
- imToken - available on Android and iOS.
- Pillar - available on iOS and Android.
Which Is Better: Hardware, Software, Hot (Online) or Cold (Offline) Wallets?
Different types of ERC-20 compatible wallets have been outlined above. At this point, you might be thinking - which wallet type is better? Here's what you should know.
Proper cold storage (aka paper wallet) is an offline cryptocurrency wallet. While setting up the wallet, users print out a QR code of the wallet’s private key. Since it is entirely offline, a cold wallet is the most secure. However, they’re more complicated and intended for long term storage.
A hardware wallet is similar to a cold wallet in being predominantly offline; they’re secure physical USB devices that store private keys. You must connect a hardware wallet device via a computer or mobile to enable transactions. Both Ledger wallet and Trezor wallet devices are great examples.
A software wallet (aka hot wallet) is an application installed onto a mobile device or a desktop. The application stores a user's private keys and uses an internet connection to track and access cryptocurrencies. Examples are Exodus, MetaMask and Coinomi.
A hosted wallet is those used on an exchange platform. Bear in mind, the exchange platform controls and keeps your private key, so they’re most susceptible to hacking.
Choosing a preferred wallet is dependent on three criteria - security, compatibility and mobility. While all the wallets outlined in this article are compatible with ERC-20 tokens, some are more secure and mobile than others. While making your choice for a wallet, consider these criteria before trading or storing ERC-20 tokens or other cryptocurrencies.
For a more in-depth guide to the different crypto wallet options and how to choose which is the best type for you, refer to our Beginners cryptocurrency wallet guide.
About the author:
Olaniyi is a freelance finance & business writer experienced in writing about cryptocurrencies & NFTs, personal finance, entrepreneurship & small businesses, stock market & investing. You'll find him on LinkedIn.
The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.