9 Best Crypto Wallets in South Africa

Choosing a suitable crypto wallet is crucial - not only in terms of safety but for sending and receiving tokens. In this guide, we compare the best crypto wallets in South Africa for 2023. 

Read on to discover the top crypto wallets for security, features, usability, fees, privacy, and much more. 

List of the Best Crypto Wallets for South African Investors 

Here's an overview of the best crypto wallets in South Africa:

1. Best Wallet - This is the best crypto wallet for South African investors for 2023 because it can store coins and tokens from various blockchains like Ethereum, Polygon and BNB, it can seamlessly swap them, and it can hold your NFTs all within one mobile app. Its upcoming features are what will set Best Wallet apart from any competitor. This includes market insights and advanced charts as well as token analytics and sentiment.
2. eToro - The eToro wallet is simple to use and benefits from strong regulation. It supports over 90 cryptocurrencies and is secured by eToro's custodian service. This ensures that the crypto tokens remain safe at all times. No fees are charged, and the wallet can be accessed via web browsers and an iOS/Android mobile app. What's more, the eToro wallet supports trading and smart portfolios. 
3. Trust Wallet - Trust Wallet is a decentralized wallet, meaning investors take control of their private keys. It supports dozens of blockchain standards and over 4.5 million digital assets. Trust Wallet comes with many in-built features, including trading, staking, and support for Web3 applications. Trust Wallet can be downloaded as a browser extension or mobile app. 
4. Trezor - Trezor is one of the safest storage options for long-term crypto investors. As one of the best crypto hardware wallets, it requires users to enter a PIN when transferring funds. The Trezor device is always offline, removing the threat of remote hacks. Trezor supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, XRP, Litecoin, and Dogecoin. 
5. MetaMask - This is one of the best crypto wallets for storing ERC20 tokens. MetaMask is free to use and can be downloaded as a browser extension for Chrome, Firefox, Edge, and Brave. MetaMask also comes as an app for iOS and Android. In addition to the Ethereum blockchain, MetaMask is also compatible with the Binance Smart Chain and several layer 2 networks, including Polygon. 
6. Binance - Binance is a leading crypto exchange that also offers an in-built wallet. This is a custodian wallet that supports hundreds of cryptocurrencies, ranging from Bitcoin and BNB to Ethereum, XRP, and Shiba Inu. The Binance wallet is one of the best options for active traders seeking low commissions. It also supports savings accounts and staking. 
7. OKX - OKX is a non-custodial wallet supporting MPC (Multi-Party Computation) security. This is an innovative safeguard that ensures private keys do not have a single point of failure. The OKX wallet supports 50+ blockchains and comes with an aggregator bridge. This allows users to swap tokens and earn interest without leaving the wallet interface. 
8. Coinbase - Coinbase is a popular crypto exchange that offers a custodian wallet service. Accessible via web browsers and an iOS/Android app, Coinbase offers the perfect balance between security and user-friendliness. The wallet allows users to store, trade, and earn crypto in one safe place. It also supports fiat money payments, including debit/credit cards and PayPal. 
9. Exodus - This is a multi-asset crypto wallet available as a browser extension, mobile app, and desktop software. Users have full control of their private keys, and there is no requirement to provide any personal information when getting started. Exodus supports thousands of cryptocurrencies across over 50 blockchain networks. It also allows users to connect to Web3 applications. 

Crypto Wallets Explained 

Choosing a suitable crypto wallet is crucial. Investors will need to select a wallet that offers adequate security controls, a user-friendly interface, and convenient accessibility. In addition, investors will need to consider what features they seek from a wallet, such as being able to trade or stake tokens. 

Crypto wallets come with many different functions, but they are primarily used to store digital currencies. For example, consider an investor who buys Bitcoin from a crypto exchange in South Africa. Instead of trusting the exchange to keep the tokens safe, many investors will withdraw the funds to a private wallet. 

In doing so, the investor can retain full control of their cryptocurrencies. In addition, crypto wallets allow investors to send and receive funds. Transactions are conducted on a wallet-to-wallet basis and do not go through a centralized entity, such as a bank or e-wallet provider. Instead, wallet transactions are private and decentralized. 

When sending funds to another person, the user will need the receiver's wallet address. No two wallet addresses are the same. After confirming the transaction, it will be executed by the underlying network. 

The best crypto wallets in South Africa come with additional features, allowing users to fully engage with the blockchain ecosystem. 

• For example, wallet providers like Best Wallet and Binance support trading. This means that users can buy, sell, and trade cryptocurrencies without leaving their wallet. 
• Providers like Trust Wallet and OKX come with staking tools, enabling users to earn passive income on their idle tokens. 

As we explain in more detail later, there are many different types of crypto wallets. For instance, non-custodial wallets provide users with their private keys. This means the user has full control of their crypto tokens. 

Custodial wallets, on the other hand, remove the need to secure private keys. This is because the custodian will keep the crypto tokens safe on behalf of investors. Investors also need to consider their preferred device type, such as a mobile or desktop wallet. 

Do You Need a Crypto Wallet? Key Reasons Explained 

There are various reasons why a crypto wallet is crucial when investing in digital currencies. This is the case for both short and long-term traders. 

Discussed below are the key benefits provided by the best crypto wallets in South Africa. 

Safely Store Cryptocurrencies

Cryptocurrencies are highly sought after by cybercriminals, due to their anonymous characteristics. Put otherwise, if an investor has their crypto tokens stolen remotely, the likelihood is that the funds will never be recovered. This is why wallets are so important, as they keep cryptocurrencies safe. 

The level of security offered by a wallet will vary greatly. 

For example, 'cold' wallets are always offline, so offer the greatest security controls. 'Hot' wallets are less secure as they are always connected to live servers. But hot wallets can still be protected by two-factor authentication and other security tools. 

Nonetheless, crypto wallets allow South Africans to store wealth away from banks and other financial institutions. 

Send and Receive Cryptocurrencies

Wallets also allow users to transact, often without a centralized intermediary. Transactions are processed on a wallet-to-wallet basis via public addresses. 

• For example, suppose an investor wants to transfer some Bitcoin tokens to a family member. 
• After providing the receiver's wallet address, the Bitcoin transaction should be confirmed by the blockchain in about 10 minutes. 

If the investor wishes to receive Bitcoin from another person, they would need to provide their unique wallet address. 

Additional Features

The best crypto wallets for South African traders come with additional functionality. This removes the need to use third parties when engaging with the blockchain ecosystem. 

• Some wallets allow users to swap tokens instantly. For example, swapping Bitcoin for Dogecoin without needing to use an exchange. 
• Earning passive income is also possible when using a top-rated wallet. The most common methods include staking and yield farming. 
• Many wallets are able to connect to Web3 applications. This includes decentralized exchange and lending platforms, offering a world of possibilities for South African investors. 

While security should be the main priority when choosing a wallet, investors should also explore what features are available. 

Top Crypto Wallets in South Africa: Full Reviews  

There are many metrics that should be considered when choosing the best crypto wallet for South African traders. This includes everything from fees and security to accessibility, user-friendliness, and core features. 

Below, we rank and review the best crypto wallets in South Africa for 2023. 

1. Best Wallet - The Overall Best Crypto Wallet for South African Traders and Investors

Best Wallet is our top pick for the best crypto wallet in South Africa for 2023. This wallet offers multi-chain support, meaning you can hold tokens on the Ethereum, Polygon and BNB blockchains, and you can swap them between chains. The team plans to add Bitcoin blockchain in the future, which will make it the ultimate crypto wallet for storing your coins.

This solves one major issue for crypto investors. Instead of having multiple crypto wallets for each blockchain, you can store all your coins in one wallet. What's more, the team will add NFT support, meaning you can hold your digital collectibles in your wallet or you can exchange them directly from your wallet.

Another useful feature is the Best DEX integration. This is a decentralized exchange that swaps your tokens. In addition, anyone with a crypto wallet can use the Best DEX as you don't have to sign up. All it takes is to connect your wallet and you're good to go.

Best Wallet and Best DEX users are eligible for the $BEST token drop, which is planned for Phase 6 of the wallet's development.

The $BEST token will be the ecosystem's utility and governance token, meaning you can use it to vote in the Best Wallet governance or you can stake it to get benefits like feeless swaps.

You can now download the Best Wallet on your iOS and Android devices and use some of its features while new features are being built. In the future, the wallet will integrate market analysis, which comes with advanced price charts for the tokens you wish to trade. There will also be token analysis, where you can find trending tokens to buy or track investor sentiment for select tokens.

To put your mind at ease, Best Wallet comes with advanced security features such as two-factor authentication and PIN or biometrics unlocking, depending on your smartphone. So even if someone steals your phone, they won't be able to access your crypto wallet.

Overall, this is more than just a crypto wallet. It's designed to be the ultimate Web3 hub where you can swap coins between chains, trade NFTs and monitor the crypto market all within a single mobile app.

Stay up-to-date with new information on the Best Wallet Telegram channel and follow Best Wallet on X to get insights on feature releases and $BEST token airdrops. 

Pros

• Overall best crypto wallet for South African investors 
• Supports multiple blockchains
• Employs 2FA and biometrics
• Easily buy and sell cryptocurrencies without leaving the wallet
• NFT gallery and marketplace
• Using the app makes you eligible for $BEST token airdrops 

Cons 

• No crypto wallet browser extension available at the moment
• Third-party fees for buying crypto with a credit card

2. eToro - Leading Crypto Wallet for South African Traders  

eToro covers all bases, including rock-solid security, usability, and a wide range of useful features. First and foremost, the eToro wallet is custodial. Put simply, this means that the provider keeps cryptocurrency tokens safe on behalf of South African investors. 

eToro achieves this by keeping the majority of tokens in cold storage. Investors will need to set up two-factor authentication, ensuring that only the wallet owner has access to their Bitcoin account. What's more, eToro is heavily regulated. It holds licenses in multiple jurisdictions, including the UK, the US, Australia, and Cyprus.  

In addition to high security and regulation, eToro is the best crypto wallet for beginners. The wallet comes with a simple interface, and there is no requirement to safeguard private keys. The eToro wallet also makes it easy to buy and sell cryptocurrencies. This is because eToro doubles up as a regulated and low-cost exchange. 

It supports more than 90 cryptocurrencies, including Bitcoin and some of the best altcoins. This includes Ethereum, Dogecoin, Shiba Inu, XRP, Litecoin, Cardano, and BNB. The wallet connects directly to the eToro exchange, so there is no need to keep moving funds. eToro also supports fiat money payments, allowing South Africans to enter and exit the crypto markets with ease. 

This includes support for local bank transfers, debit/credit cards, and a selection of e-wallets. South Africans are charged just 0.5% when depositing fiat money. This is an FX fee to convert ZAR to USD. eToro is also popular with long-term crypto investors that want to access the markets passively. 

It supports copy trading, an innovative tool that allows users to replicate successful traders. For example, if the chosen trader buys Ethereum and sells a few days later at a 10% profit, the same position will be replicated in the user's eToro wallet. It also supports smart portfolios, which consist of multiple cryptocurrencies that are handpicked and managed by the eToro team.       

In terms of accessibility, most traders use the eToro web wallet. It comes with all of the features discussed above and does not require any downloads or installations. eToro also offers a mobile wallet for iOS and Android. Users can transfer funds from the web wallet to the app at any time. This provides additional functionality, such as wallet-to-wallet transfers via the blockchain. 

Pros

• Overall best crypto wallet for South African investors 
• Backed by a heavily regulated crypto exchange with institutional-grade security controls
• Supports over 90 cryptocurrencies
• Easily buy and sell cryptocurrencies without leaving the wallet
• Passively invest in cryptocurrencies via copy trading and smart portfolios
• Very user-friendly and ideal for first-time investors 

Cons 

• In-built staking tool supports just three cryptocurrencies 
• 2% fee to transfer tokens to the eToro crypto wallet app 

Crypto assets are highly volatile investment products. Your capital is at risk. 

3. Trust Wallet - Popular Non-Custodial Crypto Wallet Used by Over 60 Million People 

Trust Wallet is popular with South Africans that prefer non-custodial storage. This means that only the wallet owner has access to the private keys. And hence, users can store, send, and receive cryptocurrencies without going through an intermediary. Trust Wallet - which is used by over 60 million people, is completely free to use. 

It is available on multiple device types and operating systems. This includes a mobile app for Android and iOS, as well as a browser extension for Chrome and other web browsers. The setup process is very simple, and Trust Wallet provides users with a 12-word passphrase. This is to be used if the wallet PIN is forgotten or the device is lost or stolen. 

Trust Wallet supports more than 70 blockchains, making it ideal for diversified portfolios. This includes all tokens on the Bitcoin, Ethereum, Cardano, XRP, Binance Smart Chain, Arbitrum, and Polygon networks. Trust Wallet also stores NFTs across multiple network standards. We also found that Trust Wallet is ideal for earning passive income on idle crypto tokens. 

It comes with an in-built staking tool that supports many proof-of-stake cryptocurrencies. This includes Tron, Tezos, Osmosis, Kava, and BNB. No staking fees are charged by Trust Wallet. Moreover, users can swap tokens via Trust Wallet without paying any fees. Trust Wallet also connects to Web3 applications like PancakeSwap and Uniswap. 

Pros

• Best Bitcoin wallet for South Africans seeking decentralized storage
• Supports over 70 blockchain standards
• Completely free to use and available as a browser extension or mobile app
• Stake and swap cryptocurrencies without paying fees
• Used by more than 60 million people globally 

Cons 

• Pay up to 5% to buy cryptocurrencies with ZAR
• No browser extension for Firefox or Edge

4. Trezor - Cold Wallet Device Aimed at Long-Term Crypto Investors   

Trezor is one of the best crypto wallets in South Africa for long-term investors. This is a cold wallet device that does not expose private keys to the internet. And hence, investors can rest assured that their cryptocurrencies cannot be hacked remotely. What's more, even if the Trezor device is lost, damaged, or stolen - the funds can be recovered via the backup passphrase. 

This is provided when the wallet is set up for the first time and should be written down and kept somewhere safe. Another safeguard is that cryptocurrencies can only leave the Trezor wallet when the PIN is entered on the device. Not only that but unlike its main competitor Ledger, the Trezor wallet is open source. 

This ensures that any potential vulnerabilities are made available to the crypto community. We also like that Trezor supports more than 1,200 cryptocurrencies across multiple blockchain standards. This includes everything from Bitcoin and Ethereum to Cardano to BNB. Trezor also allows investors to add custom tokens, as long as the underlying network is supported. 

In terms of pricing, there are two Trezor models to choose from. The Trezor Model One costs $69 (about 1,300 ZAR), while the Model T retails for $219 (about 4,100 ZAR). The latter comes with additional features, such as an in-built staking tool and a more convenient touchscreen LCD pad. That said, the $69 model offers the same level of robust security as the premium version.       

Pros

• Best Bitcoin wallet in South Africa for long-term investors
• Robust security features - including cold storage 
• Supports more than 1,200 cryptocurrencies 
• Recover lost, damaged, or stolen devices via the backup passphrase 

Cons 

• Will not appeal to active crypto traders 
• The basic model does not support staking
• ZAR payments are handled by third parties 

5. MetaMask - Top Decentralized Wallet for Storing ERC20 Tokens   

MetaMask is an established crypto wallet used by over 30 million people globally. This is a decentralized wallet that will appeal to investors wanting to take custodianship over their cryptocurrencies. MetaMask does not ask for personal information, and it does not have access to the user's password or private keys.

This allows South Africans to store their wealth away from centralized bodies. Although MetaMask does not support Bitcoin, it's one of the best crypto wallets for storing ERC20 tokens. Any ERC20 token can be added to MetaMask via its unique contract address. MetaMask also supports layer 2 blockchains, including Polygon, Arbitrum, and Avalanche. 

This is in addition to all tokens operating on the Binance Smart Chain. There are no fees to download or use MetaMask. The wallet supports multiple devices, including smartphones and web browsers. Supported operating systems include iOS and Android, plus extensions for Chrome, Firefox, Edge, and Brave. 

MetaMask does not charge any additional fees when sending cryptocurrencies to another wallet. Users simply pay the real-time blockchain fee. MetaMask supports an in-built staking tool for Ethereum, backed by Rocket Pool and Lido. It also supports token swaps, but users will be charged a markup of 0.875%. ZAR payments are processed by third parties, costing 3-5%.  

Pros

• Popular non-custodial wallet used by over 30 million people
• Supports Ethereum, Binance Smart Chain, and a selection of layer 2 blockchains
• Free to store cryptocurrencies with no markups on outgoing transfers
• Completely decentralized - only the user has access to their password and private keys  

Cons 

• 0.875% markup charged when swapping tokens
• Does not support Bitcoin

6. Binance - User-Friendly Web Wallet Aimed at Active Crypto Traders     

Binance offers one of the best crypto wallets for South African traders. It is a leading crypto exchange that doubles up as a user-friendly web wallet. The Binance wallet is custodial, so users are not provided with their private keys. The wallet comes with a variety of security controls, including IP and device whitelisting. It also comes with two-factor authentication. 

Behind the scenes, Binance operates both hot and cold wallets. This provides an adequate balance between security and accessibility. Binance users can trade and store over 350 cryptocurrencies. This includes the most popular cryptocurrencies, such as Bitcoin, Ethereum, BNB, Cardano, Tether, USD Coin, and Solana. 

There is no requirement to transfer funds from the wallet to access the Binance exchange. Thousands of trading markets are supported, with South African traders paying a commission of just 0.1%. South Africans can also access leveraged markets, including futures and options. This is in addition to Binance savings accounts and other DeFi features. 

This offers a seamless way to earn income on idle cryptocurrencies. For example, Ethereum holders can currently earn an APY of 4.27%. This is a flexible account without any withdrawal limits or fees. A 90-day savings account for Axie Infinity offers a huge APY of 32%. While Polkadot holders can earn 14.9% on a 120-day lock-up term.  

Pros

• Best Bitcoin app for active crypto traders
• Deep liquidity and low trading commissions of 0.1%
• Uses a combination of hot and cold wallets
• Two-factor authentication and IP/device whitelisting 

Cons 

• As a custodial wallet, users do not have access to their private keys
• The Binance exchange was hacked in 2022  

7. OKX - Non-Custodial Wallet App Supporting Over 50 Blockchain Standards      

OKX is a popular crypto exchange that also offers a non-custodial wallet. The wallet is decentralized and does not connect to the primary OKX wallet. There is no requirement to open an account, and only the wallet user has access to their private keys. The OKX wallet supports more than 50 blockchain standards. 

This includes Bitcoin, Ethereum, Binance Smart Chain, and Arbitrum. It also allows users to add custom tokens via the project's contract address. In terms of security, users can activate MPC (Multi-Party Computation) security via the OKX app. This means that there is no single point of failure, a major safeguard when keeping private keys secure.  

Instead, the private keys are split into smaller segments and secured in multiple, unknown locations. This ensures that the OKX wallet remains safe against remote hacking attempts. The wallet is also secured with a backup passphrase. This will be needed if the user forgets their wallet PIN or the device is lost or stolen. 

One of the best features of the OKX wallet is its bridge aggregator. This allows users to instantly swap tokens without leaving the wallet. It also allows users to earn income on idle tokens via staking and yield farming. These tools are integrated with over 200 decentralized exchanges, allowing OKX users to get the most competitive rates. 

Pros

• Decentralized wallet backed by MPC security 
• Supports more than 50 blockchain standards
• Aggregates to over 200 exchanges for staking, token swaps, and other DeFi features
• Compatible with smartphones, desktop devices, and Chrome browsers 

Cons 

• Does not display token swap commissions until the order is created
• Some yield farming pools have little liquidity  

8. Coinbase - Global Crypto Exchange With a Secure Custodial Wallet      

Coinbase - one of the largest crypto exchanges for trading volume, also offers a secure custodial wallet. This wallet provider is popular with beginners that want a simple but regulated place to buy and store cryptocurrencies. Coinbase holds many licenses in the US and several international markets. It also offers premium security features. 

For example, Coinbase accounts are protected by cold storage, two-factor authentication, and device whitelisting. Coinbase also has an internal security team, and all accounts must go through a KYC process. We also like that Coinbase supports over 100 cryptocurrencies. This includes Bitcoin, Ethereum, Dogecoin, USD Coin, Tether, and Litecoin. 

The Coinbase wallet supports web browsers and smartphones. The latter comes as an app for iOS and Android. Coinbase is also popular with South Africans that want to trade crypto against ZAR. This removes the need to pay foreign exchange fees. That said, trading commissions are high at 1.49%. There is also a 3.99% fee to buy crypto with a debit/credit card. 

Pros

• Custodial wallet is robust security features - including two-factor authentication
• Buy, sell, and store cryptocurrencies in one regulated place
• Comes as a mobile app or web wallet 
• Stake idle cryptocurrencies at APYs of up to 109.6%  

Cons 

• Charges 1.49% in standard trading commissions
• Withdrawals are often slow  

9. Exodus - Free Crypto Wallet Supporting 50+ Networks and Multiple Device Types   

Exodus is an established crypto wallet that supports over 50 blockchain networks. This includes everything from Bitcoin and Binance Smart Chain to Ethereum, Cardano, and Litecoin. Exodus is also a multi-device wallet, compatible with desktops, mobiles, and web browsers. This includes software for Windows, Mac, Android, iOS, Chrome, and Brave. 

Exodus offers non-custodial storage, so does not have access to the user's private keys or password. There is no requirement to provide any personal information when downloading Exodus, allowing South African investors to remain anonymous. We also like that Exodus is free to use, and no markups are charged when sending cryptocurrencies to another wallet. 

Exodus also connects to Web3 applications and comes with an in-built staking tool. The latter supports multiple staking coins, including VeChain, Tezos, Cardano, and Cosmos. Currently, APYs of up to 18.9% are available. We also like that Exodus comes with portfolio management tools. This includes a full breakdown of key investment statistics, such as real-time values.    

Pros

• Online Bitcoin wallet supporting 50+ other blockchain networks
• Available as desktop software, a mobile app, and a browser extension 
• No fees to store or receive cryptocurrencies    
• Comes with an in-built staking tool with APYs of up to 18.9%

Cons 

• High fees to buy crypto with ZAR - up to 5.45% 
• Limited security tools 

Tips for Selecting the Best South Africa Bitcoin Wallet 

Investors should do lots of independent research when researching the best Bitcoin wallets in South Africa. This means assessing security, usability, supported coins, fees, and other important factors. 

Still undecided on the best South Africa Bitcoin wallets? Read on for assistance on how to select the most suitable wallet in 2023. 

Type of Wallet

South African investors should consider the type of crypto wallet that is most preferable for their needs. 

This begins with a choice between custodial or non-custodial storage. 

• Custodial wallets: Investors have no access to their private keys. The custodian is responsible for keeping the crypto wallet safe.
• Non-custodial wallets: Private keys are provided when setting up the wallet. The investor is responsible for keeping the crypto wallet safe.  

What's more, South Africans need to choose the device type to store their crypto wallet. 

Mobile apps offer a great level of security and convenience. Another option is desktop or browser-based wallets. When opting for a software wallet, make sure the respective operating system is supported. 

Those holding a large amount of cryptocurrencies might be more suited for a hardware or paper wallet. 

Supported Coins

Next, South Africans need to ensure their chosen cryptocurrencies are supported by the wallet. For example, while MetaMask is one of the best crypto wallets in South Africa - it doesn't support Bitcoin, Cardano, or Solana. 

eToro, on the other hand, supports 90+ cryptocurrencies across many different networks. In addition to Bitcoin, Cardano, and Solana, this also includes Ethereum, XRP, Litecoin, EOS, Dash, and Bitcoin Cash. 

It's best to choose a wallet that supports a wide range of cryptocurrencies and network standards. In doing so, investors can store their cryptocurrencies in the same place. 

Fees

Most software wallets are free to use. This means there are no fees to store or receive cryptocurrencies. While GAS fees apply on outgoing transactions, the best crypto wallets in South Africa do not charge any markups. 

Hardware wallets are not free. They must be purchased from the manufacturer, and prices will vary considerably. Investors should ensure that the cost price is justified, based on the value of their crypto portfolio. 

For example, those investing very small amounts likely won't want to buy the Trezor Model T - which retails for approximately 4,100 ZAR. 

Extra Functionality

The best crypto wallets in South Africa offer extra functionality, such as being able to trade tokens. This removes the need to use a third party when buying and selling cryptocurrencies. 

For example, the Best Wallet allows users to buy and sell cryptocurrencies with a credit card, and they support multi-chain tokens. 

The Binance wallet is also great for additional features. It supports staking, savings accounts, yield farming, and leveraged trading. The latter includes futures and options. 

We also like the OKX wallet, which bridges to over 200 exchanges. OKX users subsequently get the best interest rates when earning yields on idle tokens. 

Security Controls

The best crypto wallets in South Africa offer a breakdown of what security controls are provided. 

This might include:

• IP/Device Whitelisting: Additional security steps are needed when logging into the wallet from a new IP address or device. 
• Two-Factor Authentication: The user will need to enter a unique code when logging in. This is either sent to the user via email or SMS. 
• Cold Storage: Keeping cryptocurrencies in cold storage means the private keys remain away from live internet servers. This makes them practically impossible to hack remotely. 
• Multi-Sig Permissions: Some crypto wallets offer multi-sig permissions. The user will need to verify outgoing transactions on multiple devices. 
• MPC: MPC technology is offered by the OKX wallet. It splits the private key into multiple segments and stores each part in a unique location.
• Regulation: The best crypto wallets in South Africa are regulated. eToro holds licenses in multiple countries, including the US, the UK, Cyprus, and Australia. 

How do Crypto Wallets Work? 

Looking for some guidance on how crypto wallets actually work?

Here's what South African investors need to know before getting started. 

Wallet Addresses

Once a suitable wallet has been chosen, the investor will need to set it up. This will generate a new, unique wallet address. The wallet address allows the investor to receive cryptocurrencies from another location. 

Think of it like an electronic funds transfer (EFT), which requires the sender to specify the receiver's personal account number. The wallet address is safe to share with other people, as it simply allows the user to receive tokens via the blockchain. 

Each blockchain network has its own wallet address standard. For example, Ethereum wallets always start with 0x. Nevertheless, if the wrong wallet address is provided, the tokens will be sent to an incorrect location. This means the tokens will be unrecoverable. 

Private Keys

If the investor opts for a non-custodial wallet, they will be provided with unique private keys when getting started. This is usually provided as a 12-word passphrase, but some wallets use a much longer combination. 

Either way, private keys must never be shared with another person. Nor should they be kept on a device that connects to the internet. 

If they end up in the wrong hands, the private keys will allow an unauthorized person to access the wallet. This is one of the most common reasons for crypto wallets being hacked remotely. 

Custodial wallets do not provide users with their private keys. This is because the custodian is responsible for keeping the cryptocurrencies safe. Custodial wallets are popular with beginners, but investors should ensure the provider is regulated. 

Wallet Fees

Software wallets are usually free to use. There are no fees to store or receive cryptocurrencies. But fees are charged when sending cryptocurrencies to another wallet. 

The best crypto wallets in South Africa do not charge a markup on network fees. Instead, fees go directly to blockchain miners. 

Fees are quoted in real-time and rise and fall based on network demand. 

Crypto hardware wallets, however, are not free. Prices vary depending on the provider and model type. For example, Trezor charges $69 and $219 for its basic and advanced models. 

What are the Different Types of Bitcoin Wallets?

Once South African investors have chosen between a custodial or non-custodial wallet, the preferred device type should be considered. Wallets come as mobile apps, desktop software, browser extensions, and hardware devices. Investors should also consider whether they prefer a hot or cold wallet. 

We will now discuss the main types of crypto wallets that are available to South Africans in 2023. 

Software Wallets

Some of the most popular crypto wallets in South Africa come as software. This includes desktop software for Windows, Max, and Linux. The software is installed on the desktop device and allows users to store, send, and receive cryptocurrencies via a laptop or PC. 

Another option for desktop users is wallets that come as a browser extension. Some providers offer support for Chrome, Firefox, and other popular web browsers. 

An even more convenient option is mobile wallet apps. This allows users to store cryptocurrencies on their smartphones. As such, this makes sending, receiving, and trading cryptocurrencies a breeze. 

Hardware Wallets

A more secure option is to buy a Bitcoin hardware wallet. As noted above, prices will vary, with Trezor charging $69 for its basic device.

Hardware wallets come with the added benefit of cold storage. In simple terms, this means the cryptocurrencies and private keys are never exposed to live internet servers. 

Safeguards are also in place to protect investors from physical theft. This is because cryptocurrencies can only leave the hardware wallet if the PIN is entered on the device itself.  

Paper Wallets

We also found that paper wallets are increasingly becoming popular with South African investors. After generating a public address and private key, the user will print the credentials. 

This keeps the wallet offline at all times. It is imperative that the paper wallet is kept somewhere safe. It is also important to ensure the paper wallet provider is legitimate and that private keys are encrypted when initially shown to the user. 

Both paper and hardware wallets offer excellent security, but do make it cumbersome to send and trade cryptocurrencies.  

Tutorial on How to Get and Use a Bitcoin Wallet in South Africa

We mentioned earlier that Best Wallet is the overall best crypto wallet in South Africa. In this section, we explain how to get started with this wallet in under five minutes. 

Step 1: Download the Best Wallet app

South African investors will first need to download the Best Wallet app on the App Store or Google Play. 

Step 2: Open the Best Wallet App

First, you need to verify your email address. Next, you'll be asked to secure your account with a two-factor authentication. If you want to, you can skip this step and activate this feature later.

Whether you activate 2FA or not, you'll be asked to set up a four-digit password. You can also enable biometrics to unlock your wallet if your smartphone supports this feature.

Step 3: Create a Wallet

Now that we have secured the app, go ahead and create your first wallet. This will be your main wallet on the Ethereum blockchain. At this stage you can create multiple wallets and name them, for example, "Meme coin wallet" or "Storage" or whatever you want.

Choose a background color for each wallet. This will help you identify each wallet fast. 

Tap "Continue" when ready.

Step 4: Use Best Wallet

Your next step is to use the wallet to buy coins with a card or to send and receive tokens. You can swap the tokens you have as well. The more you use the wallet during this stage, the greater the odds of getting the $BEST token airdrop in Phase 6.

How Safe are Crypto Wallets?

While varying levels of security are offered, crypto wallets are never 100% secure from hackers and scams. Moreover, investors need to take steps to protect their wallet credentials. 

• For example, custodial wallets remove the need for investors to secure their private keys. 
• But this isn't to say that the wallet is immune to fraud. 
• On the contrary, investors should make use of two-factor authentication and any other safeguards offered by the custodian. 
• Coinbase, for instance, allows users to set up IP and device whitelisting. 
• This means an extra security step kicks in if the user attempts to access the wallet from a new IP address or device. 

Security procedures will differ when opting for a non-custodial wallet. This is because there is no custodian to protect the investor's cryptocurrencies. Instead, only the user has access to their private keys, meaning they must take full responsibility for keeping them safe. 

Non-custodial wallets do not come with two-factor authentication or whitelisting. This is because there is no custodian sitting between the investor and their cryptocurrencies. 

That said, we like that the OKX wallet comes with MPC technology. This means that only a small segment of the private key is stored on the user's device. The remaining segments are stored across multiple locations. 

Some non-custodial wallets come with multi-sig permissions. This is a security tool that requires outgoing transfers to be confirmed on at least two devices. Just like MPC technology, this removes a single point of failure - making it challenging for remote hacks to succeed. 

The Verdict

Wallets ensure that South Africans can invest in the crypto market safely. While there are many crypto wallets in the market, we particularly like Best Wallet. 

The Best Wallet can hold coins from various blockchains, it can seamlessly swap them, and you can store your NFTs in a single mobile app. Upcoming features include market insights and token analysis, which will make Best Wallet the ultimate Web3 crypto hub for your tokens. 

References

https://trustwallet.com/

https://www.bnbchain.org/en/smartChain

https://coinmarketcap.com/currencies/bitcoin/

https://trezor.io/compare

https://pancakeswap.finance/

https://uniswap.org/

https://ethereum.org/en/layer-2/

https://coinmarketcap.com/currencies/ethereum/

https://www.binance.com/en/blog/all/how-and-why-assets-move-between-binance-wallets-4835275628753556476

https://www.reuters.com/technology/hackers-steal-around-100-million-cryptocurrency-binance-linked-blockchain-2022-10-07/

https://www.fireblocks.com/what-is-mpc/

https://coinmarketcap.com/rankings/exchanges/

https://www.coinbase.com/legal/licenses

https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/kyc-process

https://ethereum.org/fi/guides/how-to-use-a-wallet/

FAQs

What crypto wallets are available in South Africa?

Dozens of crypto wallets are available to South African investors, with leading providers including Best Wallet, eToro, Trust Wallet, Trezor, and MetaMask. 

Can South Africa use Coinbase wallet?

Yes, South Africans have access to the non-custodial Coinbase wallet, as well as its centralized exchange. 

Does Binance wallet work in South Africa?

Yes, the Binance wallet not only supports South African investors but ZAR deposits and withdrawals.

What is the best South Africa crypto wallet?

One of the best South Africa crypto wallets is Best Wallet, which allows investors to store and trade cryptocurrencies from multiple blockchains.