Anonymous crypto wallets are popular with crypto investors who value their privacy or want to trade with little to no hassle. Most mainstream crypto users use famous centralized wallets such as Binance and Coinbase. However, when it comes to anonymous crypto wallets, there are several options. Since they are less famous than centralized wallets, it might be difficult to make a decision on which one to use. We’ll narrow down the best options in this article. The main thing to note about anonymous crypto wallets is that they require no KYC.
What is KYC?
KYC is essentially the process of verification that most financial institutions use to allow customers to use their platforms. This includes personal identification data such as names, date of birth, physical location, and passports. Crypto exchanges and wallets also conduct KYC but not all people deem it acceptable as it erodes individual privacy. Apart from privacy, anonymous crypto wallets have other advantages that attract investors, one of them being global access. Investors can be out of a specific country without legal restrictions. In addition, setting up and getting started with anonymous crypto is straightforward. It does not involve complicated KYC procedures that could otherwise take days or weeks depending on the platform.
The best anonymous crypto wallets should therefore give the user more privacy, ease of setting up, and security. In this article, we will review some of the best anonymous crypto wallets currently available in the market. Please note that crypto wallets may differ from crypto exchanges. Some exchanges also have wallets. For an in-depth analysis of crypto exchanges, we recommend taking a look at this article on the best crypto exchanges.
Let’s now conduct a detailed review of 5 best anonymous crypto wallets.
5 best anonymous crypto wallets: examining the top anonymous crypto wallet options for June 2024
Below, we will review the advantages and disadvantages of each wallet providing you with useful information to help you decide on the best anonymous wallet for your needs.
1. Exodus
Launched in 2015, Exodus is one of the popular anonymous crypto wallets. It is a non-custodial wallet supporting over 100,000 crypto assets, according to its website. It is a well-designed wallet that is easy to use. The wallet has several capabilities such as storing crypto, staking assets, and swapping between different cryptocurrencies. Users can also see the daily price movement of coins, best performer, allocation of each asset, send & receive options for each asset, and the networks supported
Exodus supports over 50 crypto networks and unlimited token support. In terms of design and user interface, exodus has both mobile and desktop wallets. It is easy to use for both beginners and experienced crypto users.
When it comes to security, exodus has self-custody meaning the user has access to their private keys. All user information is stored on their local device. There is also a software update every two weeks; users are given timely prompts to keep their wallets updated. For additional security, Exodus has partnered with Trezor, a hardware wallet to store crypto giving users more options and easy movement of assets between Exodus and Trezor.
Exodus is also fully anonymous as no personal information is needed when downloading and installing the wallet. Users have their private keys and it does not collect personal information. In case a user loses their wallet and needs to restore it, they will just need to use the 12-word recovery seed phrase by selecting the ‘restore wallet’ option.
One of the main cons of Exodus Wallet is the lack of traditional two-factor authentication methods with apps like Authy and Google authenticator. However, exodus explains that this is designed to avoid reliance on third-party apps which could compromise security.
2. Zengo
Zengo wallet is a hardware secure crypto wallet that uses multi-party computation (MPC) cryptography instead of seed phrases used by most wallets. Even though seed phrases are the most widely adopted means of ensuring security, a user can lose funds if the seed phrase gets stolen or lost/damaged. Instead, it uses 3-factor authentication to enable access to the wallet. These are email verification, biometric authentication, and recovery file to access the wallet. The only information required is email address and no other personal identifiable information is needed. There is no KYC required.
Zengo supports over 120 tokens and users can buy Bitcoin via third-party integration.
With Zengo, all transactions are conducted offline. There is no USB, Bluetooth, NFC, or internet. Instead, QR codes are used to sign transactions. The keys remain offline. With over 1 million users and no hacks reported so far, Zengo has solidified its place in the best anonymous wallets list.
3. Ellipal
Ellipal is among the best anonymous crypto wallets. It is an air-gapped non-custodial hardware wallet working in such a way that it is isolated from the internet. Due to it being offline, it greatly reduces any instances of cyber hacks, malware, and other online threats. The private keys are offline further preventing any instances that could lead to online access. Instead of using the internet, USB connections, Bluetooth, or cables, Ellipal has a QR code scanning camera that is used to sign transactions. There is also a MicroSD card for undertaking firmware updates. Cold storage is also a major feature of Ellipal. Unlike other wallets that store private keys locally, Ellipal’s private keys are held offline. If you lose the Ellipal device, a user just needs to buy another wallet and import a seed phrase to regain access to crypto assets.
Ellipal provides additional capabilities such as swapping coins, staking, and connecting to popular DAPPs. The hardware wallet has a companion mobile app for both Android and iOS. This enables users to directly buy crypto via fiat through third-party providers.
4. Metamask
Launched in 2016, metamask is one of the most famous anonymous crypto wallets globally. Boosting over 30 million users, metamask has gained massive approval from Web3 users who want to store and take part in the growing tokens ecosystem while retaining anonymity and privacy. It has self-custody of private keys so the user has full control. When signing up, a 12-word phrase is displayed for the user to store securely. You can add an additional layer of security by enabling a password to the account. Like many other non-custodial wallets, all passwords and keys are stored locally on the device.
Metamask is available as a desktop extension as well as in Android and iOS. It is compatible with any tokens in the following blockchain networks: Ethereum, Binance smart chain, avalanche, Harmony, polygon, Aurora, and Fantom. It is one of the main crypto wallet platforms to access Ethereum ERC-20 tokens. However, apart from Ethereum, which comes pre-installed, users have to manually add the other networks. The main disadvantage is that Metamask does not support Bitcoin. It has very low fees for swaps and no markups for transfers.
5. Electrum
Electrum is one of the oldest anonymous crypto wallets introduced in 2011. As a desktop application, it is available on windows, mac and Linux. Its code is open source and available on GitHub. It has been verified and continues to be monitored by multiple experienced developers.
It offers robust security features one of them being multisig permissions. This means it requires more than one device to sign transactions before Bitcoin can be sent. It embodies some of the earliest Bitcoin ethos in that Bitcoin should be about freedom and independence meaning it prioritizes verification of transactions to ensure only the owner can execute transactions. Users can keep their private keys on cold storage and the wallet can remain offline. Being a decentralized wallet means its servers can never go down. It is free to use and there is no markup on transaction fees.
The two major limitations of Electrum are that it supports only bitcoin and does not have an iOS app. Furthermore, it does not offer additional features such as staking which is a common feature in other anonymous crypto wallets. It is simply for receiving, sending, and storing bitcoin. All in all, for users that only want to store Bitcoin without the need for daily or constant use, electrum is a reliable anonymous crypto wallet.
Summary
This article has analyzed the 5 best anonymous crypto wallets in 2024. As shown above, the underlying feature of all anonymous wallets is no KYC and the security features that protect crypto stored in the wallets. Different wallets have adopted different mechanisms such as keeping seed phrases offline, keeping passwords on local devices, 3-factor authentication, and multisig permissions. All these have various pros and cons but the underlying concept is to ensure private keys are always safe and only accessed by the owner. In addition, some anonymous wallets have made additional features such as staking and the option to buy crypto with integration of third-party apps. It is important to note that in most cases, integration of other third-party devices may compromise anonymity. Furthermore, supported cryptocurrencies is an important consideration as not all wallets support every crypto network. All in all, users can choose different anonymous wallets for different purposes. For example, if you only hold bitcoin for the long haul, then you can choose a bitcoin online anonymous wallet and use another for daily trades. It is also important to keep software up-to-date at all times. I hope this article has been insightful in helping you make a decision on the best anonymous crypto wallet.
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- Source: https://coinweez.com/anonymous-crypto-wallets/
