Based on the provided search results, here are the key takeaways on the recommended level of encryption for crypto wallets:

• AES-256: The Bitcoin Wiki recommends using AES-256-CBC to encrypt private keys in the wallet.dat file. This is a widely accepted and secure encryption standard.
• 128-bit security: The Bit-Security of Cryptographic Primitives suggests that 128-bit security is a common and widely supported level of encryption in practice.
• 256-bit security: The same source also mentions that 256-bit security is believed to have a higher level of security, requiring an adversary to perform roughly 2^256 computations to decrypt a ciphertext.
• Key length: The Security Level - Crypto++ Wiki recommends a key length of at least 128 bits for federal systems, but many cryptographers and organizations recommend 128-bit or 256-bit security.

Manual Encryption vs. Hardware Wallets

The search results also highlight the importance of using a hardware wallet, to store and manage private keys. While manual encryption using algorithms like AES-256 can be effective, it is not as secure as using a hardware wallet that keeps keys offline and secret.

Based on the search results, a recommended level of encryption for crypto wallets is:

• AES-256-CBC for encrypting private keys
• 128-bit or 256-bit security for key length