Binance Coin (BNB) is the native coin of the Binance chain ecosystem. You can use BNB to pay for goods or services and to pay transaction fees on the Binance exchange or the Binance smart chain.
BNB was good to investors during last year’s bull market. From a low of $38 on January 1, 2021, BNB soared to $691.80 on May 10 for a gain of over 1,700%. Investors who bet heavily on BNB saw massive gains, turning a $1,000 investment into over $18,000 in months.
With those kinds of gains, you need to take steps to protect them. Leaving large amounts of crypto on exchanges is never a good idea. It is better to transfer most of your crypto into a wallet. Using a software wallet (hot storage) is a step in the right direction, but the most secure way to store your crypto is in a hardware (cold storage) wallet.
Best Crypto Wallets for BNB
Where to store crypto assets is an important decision that every investor needs to make. Here is a list of things to consider when choosing a good crypto wallet.
- Ideally, you want a cryptocurrency wallet that supports many coins and tokens.
- Does the wallet have a swap feature?
- Is it non-custodial (you have sole control of your private keys) or custodial?
- Is it open source?
- How many platforms support the wallet?
- Is it compatible with decentralized exchanges (DEXs)?
- Does the wallet support non-fungible tokens (NFTs)?
- What backup features does it have?
Finding a single wallet that meets all your needs may be challenging. But the reality is that most crypto investors probably use multiple wallets anyway. Most software wallets are free, so it makes sense to try a variety of wallets until you find the ones you like.
Crypto wallets have two categories of storage: hot storage and cold storage. A hot storage wallet is a software wallet connected to the internet most of the time. A cold storage wallet is a hardware wallet that is only connected to the internet while managing your assets. The fact that the hardware wallet is isolated from the internet most of the time makes it much more secure.
Best Software Wallets for BNB
Now let’s look at some of the best software wallets for BNB. Although not as secure as hardware wallets, software wallets are much more convenient. That is why many crypto investors will use both a hardware wallet for long-term storage and a software wallet for interacting with DeFi exchanges.
One of the best software wallets available today is the MetaMask wallet. MetaMask is available as a browser extension or a mobile wallet for iOS and Android. It is straightforward to download and user-friendly.
The MetaMask wallet is also effortless to connect to DEXs. Besides just storing cryptocurrencies, you can also swap one crypto for another and make purchases from inside the wallet.
MetaMask is primarily an Ethereum-based wallet, but you can add custom networks that are compatible with the Ethereum Virtual Machine (EVM). Binance Smart Chain, Polygon, Avalanche, Fantom and Celo networks can all be added. This ability expands the number of tradable coins and tokens by a significant amount.
Trust Wallet is another excellent software wallet. It also comes as a browser extension and mobile wallet. With over 160+ assets and 40 blockchains supported, you will have no shortage of cryptos to buy or exchange.
You can also stake 12 different cryptocurrencies right from the wallet. Another useful feature is the ability to store NFTs in Trust Wallet. You can store Ethereum ERC721, ERC1155, Binance Smart Chain BEP721 and BEP1155 NFTs.
Best Hardware Wallet for BNB: Ledger Nano S
Any crypto investor who wants the absolute best security will want to use a hardware wallet. One of the best hardware wallets on the market is Ledger, which comes in two models: the Nano S and Nano X. The Nano S costs about $59, while the Nano X costs $149. Although the Nano X is more expensive, it also has more storage capacity.
What makes hardware wallets so secure is they are only connected to the internet when you manage your assets. This ability to isolate the wallet from the internet makes it virtually impossible to hack. Also, Ledger forces the user to confirm transactions on the device manually. A hacker would need to physically have your wallet in their possession to complete the transaction.
Do You Need to use a Crypto Wallet?
Whether you choose a software or hardware wallet, using a crypto wallet is a good idea for everyone. It is not a good idea to store large amounts of crypto on exchanges. Owning crypto comes with risks, but this one is easily mitigated. Each investor will have to determine how much risk they are comfortable with.
If you are an active trader, you will have larger quantities of crypto locked in trades at times. However, it is essential even for traders to use a crypto wallet to store most of their digital assets.
Where to Earn Interest on BNB
Every investor should take advantage of the opportunity to earn interest on their crypto. Any way that you can earn passive income is worth pursuing. Many platforms allow you to earn interest in various ways. Which platform you can use will depend on the cryptocurrency you want to stake or lend. In this case, let’s look at where you could earn interest on BNB.
- Binance.com: The most obvious place to stake BNB would be on Binance.com. The lock-up periods vary from 30 days (5.86% APY) to 120 days (12.99% APY).
- BNB Smart Chain staking: You can also stake on the BNB Smart Chain from the Binance wallet extension. To activate the staking feature, click on the three dots to the right of the wallet address, then click on staking. The BNB Chain staking page will open where you can choose the validator to whom you will delegate your BNB. The interest paid will vary by validator as well as their commission.
- Crypto.com: To stake BNB on Crypto.com, log into your account. Select Stake & Earn, select stake BNB and input the amount you want to stake. After reviewing your staking details, click on confirm.
- Trust Wallet-Mobile: Using the Trust Wallet mobile app, you can also stake BNB. Purchase or deposit BNB into your wallet. Open the financial dashboard, choose BNB, click on “More” and then on “Stake.” Enter the amount of BNB you want to stake and click on “Next,” then click send to confirm and start staking.
Cryptocurrency Wallet Best Practices
Ideally, if you were to only use a hardware wallet, that would be the most secure way to store your crypto. That might be okay for some people, but it is not practical if you are active in the crypto market. That’s why many crypto investors will usually have a variety of wallets.
If you must use software wallets, you can take steps to protect your digital assets. The first step is creating strong passwords and keeping them in a safe place. A VPN can also enhance your online security, as well as using key scrambler software.
Also, when you are done using a software wallet, be sure to lock it. You could also use a computer dedicated to only being used for crypto transactions. When not in use, this computer would be isolated from the internet and only connected when using your wallets.
Are Cryptocurrency Wallets Worth it?
The last thing you want to do is leave large quantities of crypto on exchanges, so cryptocurrency wallets are always worth it. If you plan on using DEXs, you will need a crypto wallet to connect anyway.
There definitely is no shortage of wallets, so you should have no problem finding wallets that work best for you. The number one responsibility of every crypto investor is to protect your digital assets. Using a hardware (cold storage) wallet for long-term storage and various software (hot storage) wallets for short-term storage is a good strategy.