IOTA, which stands for Internet of Things Application, is a popular project in the cryptocurrency space. Not only is the technology behind IOTA unique, but it also sets itself apart from other cryptocurrencies such as Bitcoin. For example, IOTA is not dependent on blockchain technology, instead utilizing a unique network configuration known as Tangle. Additionally, IOTA is a leading cryptocurrency project in the race towards the Internet of Things (IOT). In this review, we take a look at what IOTA is, as well as the best wallets for storing this innovative token.
What is IOTA?
Let’s face it, the IOT is a fast-growing phenomenon that’s transforming how people and things relate to each other. Our computers, mobile devices, cars, and even some refrigerators are already connected to the internet, and there’s a high probability that other devices will soon follow suit. Here’s where IOTA comes in. IOTA was created to be the main technology behind the IOT by facilitating transactions between different devices, thereby shaping the machine economy of the future. The project promises feeless micro-transactions along with the utmost data integrity for all devices. I know what you are thinking — what, exactly, does IOTA do?
IOTA manages the scalability and fee issues of blockchains by getting rid of both the block and the chain. It introduces a new network known as the Tangle, which allows you to verify two past transactions. There is no central ledger or need for miners to verify transactions. Devices on the network verify each other’s transactions, thereby achieving consensus between themselves and promoting true decentralization. This kind of verification is known as Directed Acyclic Graph (DAG) verification, which in this case is referred to as ‘Tangle.’ IOTA’s long-term goal is to enable the creation of a decentralized device market.
What IOTA Wallets Are Out There?
If you’ve recently purchased some IOTA and you are wondering where to store it and which wallets support IOTA tokens, keep reading. Wallets come in various forms, each with a unique set of features, and capabilities. In this section, we will be reviewing different types of IOTA wallets and breaking down their pros and cons. We will also take a look at factors such as cost, security, accessibility, among others, to determine which wallet is best for you. With that said, let’s first examine the different types of wallets available. They include:
- Hardware wallets
- Exchange wallets
- Web wallets
- Desktop Wallets
- Mobile wallets
Hardware wallets are wallets that you can actually handle physically. You store your MIOTA in the actual devices offline, safe and secure from any prying eyes. The wallets can be accessed when the device is connected to a computer system. We recommend the hardware wallet as the best IOTA wallet for storing large amounts of IOTA tokens.
- Hardware wallets are more secure than exchange, web, desktop, and mobile wallets.
- They offer support for a broad range of digital currencies.
- They enable you to have control over your private keys.
- They are user-friendly and can be easily used by anyone, anywhere, at any time.
- Doesn’t offer support for all cryptocurrencies.
- In case you require quick access to the wallet, it is highly inconvenient as it requires a PIN and connection to a computer to open.
- Hardware wallets are not free. If you want one you are going to have to purchase one.
- They are susceptible to bugs or viruses hidden inside a computer system.
Exchange wallets are software or system wallets that are created by exchanges where IOTA is traded or exchanged. Exchange wallets are optimized for the easy buying and exchanging of crypto like IOTA. The problem with exchange wallets is that they offer less security and users don’t have complete control over their wallets. It’s best that you only store a few coins in an IOTA software wallet and keep the rest in a private wallet.
- Registration is quick and easy.
- Offers support for multiple cryptocurrencies.
- Convenient for on-the-go use and active trading.
- Excessive risk. There is inherent risk in a cryptocurrency exchange getting hacked and digital assets getting stolen.
A web wallet is a wallet that can only be accessed online. Often, web wallets are easy to use and their user interface is quite simple. They are mostly owned and operated by third party providers. However, due to their simplicity and the fact that they are online, they are at high risk of getting hacked.
- Convenient for making fast transactions.
- Offers support for multiple digital currencies.
- Excellent for on-the-go use and active trading.
- Susceptible to online hacking and scams.
- Susceptible to viruses hidden inside a computer system.
- Lack of control over cryptocurrencies as a third party stores them on your behalf.
Desktop wallets are app-like wallets that can be downloaded and installed on a desktop or laptop. Most are supported on Mac, Windows, and Linux. For instance, if you have a MacBook, the best way to get a desktop wallet is to head to the IOTA website and click “download IOTA wallet mac.” Once downloaded, install IOTA wallet and you’ll be done. No harm no foul! Any crypto stored in a desktop wallet is stored offline and can only be accessed once the desktop or laptop is connected to the internet.
- A convenient choice for those who are always on their computers.
- You have control over your private keys.
- Even safer in a computer that’s not connected to the internet.
- Less secure if the computer is connected to the internet.
- If the desktop or computer gets stolen, lost, or crashes, you lose access to your digital assets.
Mobile wallets are the same as desktop wallets, except for the fact that they are built for mobile devices only. These wallets are supported for IOTA on both IOS and Android. For instance, if you are using an iPhone, all you have to do is search the words “IOTA wallet iPhone” or “best IOTA wallet IOS” to get access to a mobile wallet. If you are an Android user, the words “IOTA wallet android review” will yield similar results. These wallets are secure and cannot be accessed unless the phone becomes virus-infected or stolen.
- Relatively safer than web wallets.
- Can be conveniently used on-the-go.
- Presence of additional features such as scanning QR codes.
- If mobile device gets lost or stolen, you lose access to your digital assets.
- Inherent risk of mobile malware and devices.
What is the Best IOTA Wallet?
Based on all the above categories, there are some wallets that are better than others. For instance, desktop and mobile wallets are free IOTA wallets. Others, such as the hardware wallets, come with a price tag. With that said, let’s take a look at the best IOTA wallet in each category.
Hardware Wallets: Ledger Nano
When it comes to hardware wallets, Ledger Nano takes first place. Ledger Nano is the most secure IOTA wallet in the world right now. In addition, users have total control over their IOTA stash. Ledger Nano supports IOTA on both the Nano S and Nano X versions. You can safely store your IOTA offline and access it once you plug the wallet into a computer system.
Exchange Wallet: Coinbase Wallet
The Coinbase wallet is the best wallet in this category, and it also happens to be a great place to trade IOTA. Coinbase itself is a popular and reputable exchange platform with large trading volume. The Coinbase wallet is an excellent exchange wallet that allows you to store, exchange, and trade IOTA on the platform without any problems. Additionally, within the same wallet, you can purchase IOTA using fiat currency or digital currency. You can trade other crypto for IOTA tokens or store them in the same wallet. The wallet is also easily accessible, has a great user-friendly interface, and offers optimized security features such as biometric authentication.
Web Wallet: Nostalgia IOTA Light Wallet
The Nostalgia IOTA light wallet is a great wallet in the web wallet category. There is also a desktop wallet for Nostalgia IOTA light wallet available for Mac, Windows, and Linux. As a light wallet, Nostalgia performs transactions faster than any other wallet. It also has a number of quality security features that are excellent for anyone concerned about the security of their digital assets. The only problem is that it can be quite complex for beginners to navigate its interface. However, if you are struggling to install this IOTA wallet, simply follow the instruction manuals available online.
Desktop Wallet: GUI IOTA Light Wallet
The GUI IOTA light wallet is the best desktop wallet for IOTA. It’s compatible with Mac, Linux, and Windows and is fairly simple to set up. It also has a friendly-user interface and is easy to use. You can download it from GitHub. It comes in two flavors; the full node wallet and the light node wallet. The light node wallet is easy to use and most suitable for beginners. The full node wallet is a little more complex and is recommended for those with the necessary technical expertise. If you have trouble setting up this wallet, GUI provides easy to follow step-by-step instructions.
Mobile wallet: Trinity Wallet
Trinity wallet takes the first prize for mobile wallets. The mobile wallet is easy both to set up and to operate, so it is a great choice for beginners. It was developed by the IOTA team and thus has Tangle-enabled features already baked in. It’s available for both Android and iOS mobile devices. It’s a perfect choice for any IOTA beginner, and offers top-notch security.
IOTA is certainly a unique and interesting cryptocurrency project that could transform the IOT environment as we know it. It’s Tangle network promises to help optimize, manage, and leverage the Internet of Things to solve many of the problems that blockchain faces today. Furthermore, IOTA promises no transaction fees making micro-transactions more accessible than ever before. Is IOTA the future? Although very promising, IOTA’s technology is largely untested. Therefore, deciding whether or not to buy IOTA, and how much to purchase should be based on through research.