Cryptocurrency Wallets: Categories, Functions, and Selection
Cryptocurrency wallets are essential tools for managing and storing crypto assets, with their core function being to safeguard the private keys users need to access their cryptocurrencies. Based on their internet connectivity and security levels, cryptocurrency wallets are primarily divided into two main categories: hot wallets and cold wallets.
Hot Wallets
Hot wallets are internet-connected software or online wallets, popular for their convenience. They typically exist as mobile applications, desktop clients, or browser extensions, allowing users to conduct daily transactions, access decentralized finance (DeFi) applications, and manage non-fungible tokens (NFTs).
- MetaMask: As one of the most popular browser extension and mobile wallets in the Ethereum ecosystem, MetaMask widely supports Ethereum, ERC-20 tokens, and Layer 2 solutions like Polygon. It is also a primary gateway for users to interact with DeFi protocols and NFT marketplaces.
- Coinbase Wallet: This is a self-custodial multi-chain wallet developed by Coinbase, allowing users to manage various cryptocurrencies and interact with different decentralized applications.
- Trust Wallet: A full-featured multi-chain crypto wallet, Trust Wallet supports a wide range of crypto assets and offers an intuitive user interface.
- Exodus: Known for its user-friendly interface and excellent customer support, it supports multiple cryptocurrencies.
- Phantom Wallet: Primarily serving the Solana ecosystem, it is one of the preferred wallets for DeFi and NFT users on the Solana chain.
- OKX Wallet and Bybit Wallet: These are self-custodial Web3 wallets launched by major cryptocurrency exchanges, typically supporting multiple EVM-compatible chains and Solana, offering convenient trading and asset management experiences.
Cold Wallets (Hardware Wallets)
Cold wallets, especially hardware wallets, provide the highest level of security by storing private keys offline, making them ideal for long-term storage of large amounts of crypto assets.
- Ledger: As one of the world's leading hardware wallet brands, Ledger devices (such as the Nano S Plus) support over 5,000 cryptocurrencies and can store private keys offline via a secure element chip, effectively resisting online attacks.
- Trezor: Another highly regarded hardware wallet, Trezor is known for its robust security features and open-source nature.
- Keystone 3 Pro: This is an air-gapped hardware wallet designed to ensure private key security through physical isolation, supporting multiple currencies and networks.
- OneKey Classic 1S: Supports various tokens and blockchain networks, and is compatible with its native app and third-party software wallets.
Factors to Consider When Choosing a Cryptocurrency Wallet
When selecting a suitable cryptocurrency wallet, users should consider the following aspects:
- Security: Hardware wallets are generally considered the most secure due to their offline storage of private keys. Users should choose based on their asset size and risk tolerance.
- Self-Custody vs. Custody: Self-custody wallets (non-custodial wallets) give users complete control over their private keys, requiring them to take responsibility for their safekeeping. Custodial wallets have private keys held by a third party (e.g., an exchange), which, while convenient, carries third-party risks.
- Supported Cryptocurrencies: Different wallets support varying ranges of currencies and blockchain networks. Users should choose a wallet that supports the assets they need.
- User Interface and Ease of Use: Especially for cryptocurrency newcomers, an intuitive and easy-to-operate interface can significantly enhance the user experience.
- Fees: Most cryptocurrency wallets themselves do not charge additional fees, but transactions on blockchain networks incur corresponding network fees (Gas fees).
Current State of Cryptocurrency Trading Platforms in Mainland China
Since 2021, Mainland China has continuously tightened its regulatory policies on virtual currencies, creating one of the strictest regulatory environments globally.
Comprehensive Ban and Tightened Regulation
The People's Bank of China (PBOC) and other departments have explicitly defined all virtual currency-related business activities, including trading, exchange, issuance, and financing, as illegal financial activities and have strictly prohibited them. Virtual currencies (such as Bitcoin, Ethereum, USDT, etc.) do not have legal tender status in Mainland China and are not allowed to circulate or be used in the market.
On February 6, 2026, the People's Bank of China and seven other departments jointly issued a notice further strengthening the regulation of virtual currencies. This notice for the first time included stablecoins and Real World Asset (RWA) tokenization within the scope of regulation and explicitly prohibited overseas entities or individuals from providing any form of virtual currency-related services to residents within China. Furthermore, virtual currency "mining" activities have been classified as an eliminated industry and continue to be suppressed.
Lack of Legal Trading Platforms
Given the strict regulatory policies mentioned above, there are currently no officially recognized "legitimate" or "legal" cryptocurrency trading platform apps in Mainland China. All platforms providing virtual currency trading services within Mainland China may be considered illegal financial activities by Chinese authorities and face legal risks.
Major cryptocurrency trading platforms, including Binance, Huobi (now HTX), and OKX, announced their withdrawal from the Mainland China market in 2021 and implemented measures such as delisting or restricting services (e.g., allowing only withdrawals) for Mainland Chinese users. The Chinese regulatory authorities' stance is clear: overseas virtual currency exchanges providing services to residents within China via the internet also constitute illegal financial activities.
The Chinese government's concerns about virtual currency trading and speculation primarily focus on disrupting economic and financial order, endangering people's property safety, involving energy consumption (mining), financial stability risks, capital control, and money laundering and illegal cross-border transactions. As an alternative, China is actively promoting its central bank digital currency—the digital yuan (e-CNY).
