Cryptocurrency has become an incredibly popular investment choice in recent years, with some of the largest cryptos, like Bitcoin, seeing dramatic price changes.
Before you can start investing in cryptocurrencies, though, you first need to decide which cryptocurrency wallet you’ll use to store your coins. There are so many different wallets to choose from, so which is the best crypto wallet UK?
My guide will detail the features of many popular crypto wallets so you can decide which best suits you.
Also consider: Best Crypto Exchanges UK
Browse the best crypto wallets UK July 2025
You’ve likely heard of eToro before, but did you know they also offer a crypto wallet in the UK? Indeed, the investing platform offers users access to the eToro crypto wallet, its custodial, hot wallet.
Similar to eToro’s other financial services, fees are relatively low. There is no deposit fee whatsoever and only a 2% charge on withdrawals.
You should keep in mind that there is a 1% commission on crypto trades made with your eToro wallet account, though, as mentioned, this is about the standard for crypto wallets in the UK.
Also, the eToro wallet does have an inactivity fee, though you will typically only be charged $10 a month after one year of inactivity.
There is also a decent selection of different cryptocurrencies, including some of the biggest ones such as Bitcoin and Ethereum.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.Take 2 mins to learn more
Uphold claim to have the widest range of cryptocurrencies in the UK to buy, sell and trade. Users are also able to trade precious metals and foreign exchange.
Who should use Uphold?
Uphold is suitable for for both novice crypto traders and more experienced traders, however, there is particular value to be found here for those seeking early access to new coins.
Final thoughts:
This platform seems like a solid choice for buying, selling, and storing crypto. The app is really easy to navigate, and actually conducting transactions is super simple. If you want to spend your crypto, then the MasterCard debit card is a great addition.
Pros
- Easy access of assets using the card
- Zero foreign transaction fees
- 4% cashback on all card transactions
Cons
- Fee for cash withdrawals at ATMs
- High spread fees
Key Features
- 260+ supported cryptos
- 4% cashback up to £100 when you spend crypto on your Uphold Card
- Staking rewards of more than 16% available on more than 30 cryptocurrencies
- Zero foreign transaction fees
- Low exchange rates
- Real time analytics
- FCA regulated
- Quick to set up and user friendly
Fees
- Deposit fee debit card: £3.99%
- Withdrawal fee debit card: 1.75%
- Credit card deposits and withdrawals: 3.99%
- Apple Pay/Google Pay: 3.99%
- Variable spreads apply Bitcoin and Ethereum 1.5%
- One time shipping fee of £9.95 on physical cards
Products
- More than 260 coins
- Card
- Staking
- Business account
Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
What is a crypto wallet?
While cryptocurrency isn’t a physical, tangible form of money, you still need a place to hold it. This is where crypto wallets come in.
As the name suggests, crypto wallets are essentially pieces of software that securely hold your cryptocurrencies for later use.
Cryptocurrency wallets allow users to store, send, and receive different cryptocurrencies, with some wallets even giving users the ability to buy and spend the coins within them.
There are also many different types of crypto wallet, differing so much that some are types of online software in the form of a web wallet, while others are hardware wallets, perhaps in the form of an external hard drive or a USB stick.
You can read more about the different types of cryptocurrency wallets later in my guide.
How do crypto wallets work?
Crypto wallets are backed by blockchain. This is highly complicated technology but, in simple terms, it is basically a digital public ledger that stores data in “blocks”.
The blockchain records all transactions, the balances in any given wallet, and who owns these wallets.
So, when you purchase cryptocurrency and store it in your wallet, your new currency technically isn’t in the wallet itself. It is instead stored on the blockchain, and your wallet allows you to interact with it.
When you open a crypto wallet, you will typically be given a unique private key. These private keys are passwords that allow you to access your cryptocurrencies and are essentially your wallet’s “address”.
So, for example, if you had a Bitcoin wallet, you would have your own unique Bitcoin wallet address.
Are crypto wallets safe?
While the underlying blockchain technology is usually considered quite secure, this doesn’t mean your investment is completely safe.
Indeed, some users may find themselves victims of theft, computer failure, or a loss of access to their wallets, all of which could result in the loss of your crypto investment.
As mentioned, there are several different types of crypto wallet, and when it comes to safety, the varying types bring different levels of security.
For example, cold wallets, which are essentially external hardware devices such as USB sticks or hard drives, are typically the safest crypto wallet.
This is because they usually aren’t connected to the internet, which makes it extremely difficult for hackers to steal your currencies. However, crypto hardware wallets are not entirely infallible, as you could lose the device that your coins are held on – indeed, one unfortunate investor claimed to have binned a £200 million Bitcoin wallet in 2013.
Meanwhile, this also doesn’t mean that online wallets are completely unsafe. In fact, many web wallets take countless precautions to stop theft – though, for long-term storage and safety of your cryptocurrency, you may want to consider a cold wallet.
What are the different types of crypto wallets?
There are several different categories and sub-categories of cryptocurrency wallets available to you, which can make it quite confusing to decide which would best suit your needs.
Before you open a crypto wallet and start trading, you should first compare the features of the different wallets on offer so you can decide which you most prefer.
The two main categories for crypto wallets are custodial and non-custodial wallets, while there is a further sub-category of hot and cold wallets.
Continue reading to discover the main differences between them.
| How the wallet works | Benefits of the wallet | Downsides of the wallet | The typical cost of the wallet type | |
|---|---|---|---|---|
| Custodial wallets | A wallet is provided by a third party which is responsible for it | They are simple to use and typically have an intuitive user interface | They are sometimes more susceptible to hackers since the third party has access to your private key | Typically free to open one, though the provider may have additional charges |
| Non-custodial wallets | A wallet that is completely managed and owned by you | You are given complete control over your currency and its safety | They can be more technically complex, making them typically unsuited to beginners | Typically free if using a software, though you’ll likely need to pay varying costs for an external one |
| Hot wallets | A wallet which is connected to an internet network | They are usually more convenient to use, making trading faster and easier | Since they are connected to the internet it’s easier for hackers to target them | Fees may vary depending on the provider’s charges |
| Cold wallets | A wallet on an external device that isn’t connected to an internet network | They are typically much safer – since they aren’t connected to the internet, hackers struggle to find them | They may be more expensive that other wallets since you need to buy external hardware | The price depends on the cost of hardware – can vary from £20 for a cheap USB stick, to £150 or more for an external hard drive |
Custodial wallet vs non-custodial wallet
First things first, all the different types of cryptocurrency wallets can be categorised under a “custodial wallet” or a “non-custodial wallet”.
Custodial wallets
A custodial wallet is a place to store your cryptocurrency that is hosted by a third party. This could include anything from a piece of software offered by a wallet provider, or simply a business that offers any degree of security system to safely store crypto.
One of the great things about custodial wallets is their ease of use, intuitive user interface, and the peace of mind they can offer. For example, if you lost your password or wallet address to your custodial wallet, you could easily request a new password from your provider. In this instance, you wouldn’t lose your cryptocurrency as you might if you forgot the password for a non-custodial wallet.
When you use a custodial wallet, all transactions are handled and “signed off” by your wallet provider. They will use your private key to allocate and move currencies for you.
However, since your provider uses your private key, which is used to access your wallet, this makes them a common victim of hacking as you’re relying on them to keep your wallet private keys safe.
If you do want to use a custodial wallet, you should make sure that the provider is trustworthy and reputable. Otherwise, you could end up falling victim to hackers, or end up losing your investment if the wallet provider goes bust.
You should also ensure that you keep your wallet’s private key safe to prevent hackers and scammers from accessing your funds.
Non-custodial wallets
Non-custodial wallets, on the other hand, are wallets in which the full responsibility of the storage of your crypto is completely in your hands.
You control your private keys and who can access them, which could make them safer than custodial wallets.
There are a few different types of non-custodial wallets available. These could range from browser-based and mobile wallets, to hardware wallets such as USB sticks.
While a non-custodial wallet does give you more freedom over your crypto, there is also more responsibility involved. If you forget your password for your non-custodial wallet, for example, chances are you’ll have no way to access your funds.
Also, it’s worth noting that non-custodial wallets tend to be more technically complex than custodial wallets. So, if you’re still a beginner to cryptocurrency, you may want to consider using a custodial wallet first.
Hot vs cold wallets
Next, we have hot and cold wallets. These are fairly simple to remember – a hot wallet is one that is connected to the internet, while a cold wallet is typically not. Each comes with its own set of benefits and disadvantages.
For example, a hot wallet makes trading and spending your cryptocurrencies faster and easier. Since they are always online, there’s no need to constantly change between online and offline to make transactions.
However, since hot wallets are always connected to the internet, they are typically more susceptible to hackers and crypto thieves.
Meanwhile, cold wallets are generally much safer. Since they aren’t connected to the internet, there’s little to no way for hackers to access your wallet and steal your cryptocurrency.
Though, it’s worth keeping in mind that cold wallets tend to be less convenient than hot wallets.
But which is better of the two? Well, it may be a good idea to store smaller amounts of cryptocurrency on your hot wallet that you intend to trade with.
Meanwhile, if you’re planning on storing larger amounts of cryptocurrencies over a longer period of time, then a cold wallet may be the right move.
Paper wallets vs hardware wallets
Two more sub-categories of crypto wallet types are paper wallets and hardware wallets. These are both types of cold wallets, though the features differ slightly between the two.
Paper wallets
A paper wallet is a type of wallet that you can generate from specific websites. Your paper wallet will print a private and public key onto a piece of paper, and when you want to access your wallet again, you need this sheet of paper and the codes on it.
There is absolutely no user interface with a paper wallet other than this piece of paper itself, and the wallet isn’t connected to the internet, which makes it a cold wallet.
Hardware wallets
Meanwhile, a hardware wallet is a type of external device that stores your private keys and cryptocurrencies. These can be anything from USB sticks to external hard drives.
For example, if you had purchased Bitcoin, you could transfer your new currency to a Bitcoin hardware wallet. When you have transferred your coins to your Bitcoin wallet, you wouldn’t need to give it attention until you next needed to access your cryptocurrency.
One of the biggest advantages of a hardware wallet is the reduced risk of viruses and hackers. This is because your hardware wallet will rarely come into contact with your home network.
Software wallets
You can also choose a software wallet, which is typically a hot, custodial wallet that is offered by a wallet provider.
These come in varying forms, which include:
- Web wallet – as the name suggests, these run from a browser on the internet. They typically make it easier and more convenient to interact with other web-based marketplaces.
- Desktop wallet – these wallets come in the form of software that is downloaded to your desktop.
- Mobile wallet – these are much like desktop wallets, except you download them onto your mobile phone instead. A mobile wallet can be a useful choice if you want to be able to access your funds on the go.
Can you store any type of cryptocurrency in your wallet?
When it comes to storing your cryptocurrencies in your wallet, you should first ensure that your chosen wallet provider even offers access to your chosen crypto in the first place.
Typically, most wallets will allow the storing and trading of the largest cryptocurrencies on the market. For example, you would be hard-pressed to find a wallet that didn’t allow the storing and trading of Bitcoin or Ethereum.
Though, if you wanted to trade more lesser-known cryptocurrencies, such as XRP, you should first ensure that your chosen wallet provider offers access to the currency.
What is a cryptocurrency?
Cryptocurrencies are a type of decentralised digital currency powered by the “blockchain”.
To get a better understanding of how cryptocurrencies work, you should imagine them like any other traditional currency. You can purchase things with them or invest in the currency itself with the aim of selling it when its value rises to turn a profit.
Though, cryptocurrencies differ greatly from traditional, government-backed currencies. Indeed, while traditional forms of currency are centralised, cryptos instead operate in a decentralised structure – that is, they’re separate from any centralised bank or institution.
Also, traditional forms of currency tend to be backed by commodities, such as gold and silver. Meanwhile, cryptocurrencies are typically not backed by any commodity.
How do cryptocurrencies work?
As mentioned, cryptocurrencies use something called the blockchain to operate.
This is essentially an online database that stores all of its information in a digital format. You should think of it as a digital ledger – it records all transactions and stores any information about all coins on the market.
One of the major benefits of the blockchain is that it doesn’t rely on external authorities to confirm the authenticity of the data. This means it can operate quickly and efficiently.
Cryptocurrencies are usually traded using “smart contracts”. These contracts automate the execution of trades and inform all participants of the exact value of the transaction without any external involvement needed.
Best Crypto Wallet UK FAQs
Which crypto wallet is most secure?
Which crypto wallet has the lowest fees?
The crypto wallet with the lowest fees mostly depends on what currency you wish to trade.
Though, of all the crypto wallets listed, Binance may have some of the lowest fees since it only charges 0.1% commission on trades, and there is no inactivity or deposit fee.
Please note
Crypto assets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
