Do You Have Two Crypto Wallets? Bybit Study Says You Should

• Bybit’s study on best wallets for beginners to advanced users.
• All users should have at least two wallets. 
• Wallets have developed a lot since the early days. 

Crypto wallets are at the heart of owning digital assets. Still, many users don’t know enough about them or rely on storing their assets on exchanges. 

To tackle that issue, crypto exchange Bybit has published a study on users and crypto wallets. It suggests that all users, whether experienced or not, should have at least two types of wallets. 

Bybit’s Crypto Wallet Study

On Friday, January 5, Bybit published the findings from its latest user study on crypto wallets. The study presents a case for a dual-wallet strategy, where each user has two types of wallets. 

According to Bybit’s study, the recommendation for which users should use which types of crypto wallets is as follows:

• Beginners should opt for user-friendly software wallets (EOA) and mobile wallets, which offer basic security. These wallets are ideal for ease of use and straightforward crypto management.

• Intermediate Users are advised to use multichain wallets and Web3 wallets. These offer DeFi/NFT integration, enhanced security, and multichain support, making them great for users looking to expand into DeFi, NFTs, and multichain assets.

• Advanced Users should consider hardware wallets and advanced software wallets (like MPC, AA wallets). These provide high-level security, a wide range of cryptocurrencies, and advanced features such as decentralized identity. 

This approach provides enhanced security and convenience, no matter how experienced a user is. 

Wallets Have Come a Long Way

Bybit’s study also looked at how crypto wallets developed since their first launch, dividing the period into different eras. 

The first era (2009-2013) was about simple tools for storing and transferring Bitcoin. The second era (2014-2020) saw the emergence of more complex platforms that facilitated interaction with decentralized applications (DApps) and the DeFi ecosystem. 

The current third era (2021-present) is characterized by multichain, multi-asset management platforms focusing on enhanced user experience and interactive features. 

On the Flipside

• Advocating for two types of wallets for all users might not be practical. This is especially true for users currently relying on custodial solutions like exchanges. 
• Some users might find managing multiple wallets cumbersome or confusing, potentially leading to security risks due to mismanagement.

Why This Matters

Crypto wallets are key for decentralized crypto ownership, but most users don’t know much about them. Educating more users about wallet use would open up new opportunities in the decentralized space. 

Read more about the best wallets of 2024: 
Best Crypto Wallets 2024: Where Should I Store Cryptocurrency?

Read more about ETF inflows: 
Bitcoin ETFs See $1.9 Inflows in 2023, Reach 87% Dominance