As technology, trends, and values change daily, keeping up with the latest best practices is often difficult. One of the most important considerations you should give as an investor or owner of Bitcoin (or another currency) is where to store it.
For this, you need to know the best Bitcoin wallets. Do you use a wallet linked to the exchange?
Are you using a local software wallet for your machine? A hardware portfolio specially designed to protect your coins? Or even put it on paper and store it in a fireproof safe?
There are different approaches to wallets with cryptocurrency, and they all have their pros and cons.
Table of Contents
- Online Bitcoin Wallets
- External Wallet Software
Online Bitcoin Wallets
The best option for those new to Bitcoin, online wallets allow you to store your cryptocurrency in an easily accessible place from anywhere in the world, on any device of your choice.
Often associated with the exchange, they trade fiat currencies (like the U.S. dollar) or other cryptocurrencies quickly and easily, and are easy to set up and start. Many also have smartphone apps to give you quick access to your Bitcoin.
Most offer reliable security in terms of two-factor authentication or better, and some will require photo IDs to register to verify their identity. This means that the anonymity of these wallets is less than some of the other options on this list.
These portfolios make you more dependent on a third party for help. If the exchange is hacked and you lose all of your funds, that money will likely disappear.
If the exchange experiences heavy traffic or a DDOS attack, you may not be able to access your coins. Because your Bitcoin is stored remotely, hackers and social engineers can steal your identity, access your account, and go out with their coin collection.
For these reasons, these banknotes are recommended for those who are just starting to trade Bitcoin, those who only trade in small quantities, or those who only keep their coins for the short term.
The Blockchain.info wallet system features an easy-to-understand interface, two-factor authentication, and a variety of other security options.
It comes with the ShapeShift integrated store for easy conversion of Bitcoin, Ether, and Bitcoin Cash. Unlike some alternatives, identification is not required, although it is recommended to facilitate account recovery.
Users have fast and straightforward access to the different Coinbase markets, including its GDAX trading platform, where you can sell, buy and trade Bitcoin, Litecoin and Ether.
He was involved in a Bitcoin Cash scandal in 2017, temporarily damaging his reputation, but has recovered enough and is now one of the most popular and respected sharing platforms.
While the high costs and fees of currency conversion can add up, users can also get free cryptocurrencies by completing surveys and watching videos via Coinbase Earn.
External Wallet Software
Offline software portfolios, sometimes called banknotes, still maintain some ease of use and access. Some are explicitly used on desktops and laptops, while others are more mobile and exclusive for the application.
A significant advantage of this approach is independence. Any trade in the world may fail, but you will still have technical ownership and access to your cryptocurrencies.
It also means that you will need to be specifically hacked or attacked to stop accessing it. Your identity is protected, without the need to register anywhere or provide identification to configure or access your wallet.
If you have a companion mobile app, you can quickly transfer Bitcoins between you and other owners and even use them to purchase for certain items in real stores.
However, this does not mean that these types of wallets are perfect. They are still software-based, which makes them vulnerable to hackers and malware attacks.
Those who have an Internet component to facilitate trade are also more of an audience than really alternative material alternatives (refrigerators). If you store a large amount of bitcoin in one, it can attract unwanted attention.
It’s a complete application that combines support for various cryptocurrencies (Bitcoin, Ethereum, Litecoin, and more) with substantial privacy and security features.
Exodus is entirely free and has a built-in ShapeShift function to facilitate the sharing of different cryptocurrencies, vivid graphics, and trackers, and is compatible with Windows, Mac, and Linux.
It is also compatible with the Trezor hardware portfolio for added security.
Electrum, a fast and private offline software portfolio, has been one of the most popular options among cryptocurrency owners for good reasons.
It is private and secure, with a fast interface and the full ability to export your private key for use with another Bitcoin client. It is also compatible with hardware wallets using third-party accessories.
Mycelium, an exclusive software wallet for mobile devices, is an open-source wallet platform and fully supports Bitcoin. Although it cannot be used with other cryptocurrencies, it is continually evolving and developing.
It’s quick, easy to access, and although a little tricky for new users, it offers a multitude of advanced options for more secure Bitcoin owners.
It’s one of the most popular solutions for the Bitcoin wallet on iOS, which is now also compatible with Android devices.
A simple interface and a configuration process that takes a few seconds are one of the most straightforward mobile wallets for fast, smooth start-ups and operation.
A paper keychain means you can get a wallet even if you lose your phone.
With more than 900,000 users, SoFi has developed a reputation as an excellent newborn wallet by allowing you to manage cryptocurrencies and traditional investments with functional features and financial tools included.
Users only have to deposit $1 to create an account, and SoFi only charges 1.25% of the transaction as a fee. While it can’t transfer cryptocurrencies from one wallet to another, newbies could do much unpleasant than SoFi for their first wallet.
For those who do the entirety via mobile devices, including crypto trading, Edge is the ideal solution for the Bitcoin wallet offered via Google Play and the App Store.
While there is no option to access Edge from the Internet or via a computer, users have the advantage of two-factor authentication and blockchain services to buy Bitcoin using other cryptocurrencies or fiat currencies as required.
All you need to commence is a username and password to access over 30 popular coins and transactions.