If you are dealing with cryptocurrency, it is necessity to choose the best bitcoin wallet.
You have to store your bitcoins in bitcoin wallets.
So, you secure the wallet using a private key and can access it through this key.
You can have many bitcoin wallets, and every wallet has many private keys.
There are many types of Bitcoin wallets.
Types of Bitcoin Wallets:
There are several types of bitcoin wallets.
First, let’s learn what they are.
Then we will help you choose the best one:
- Electronic Wallet
- Software Wallet
- Hardware Wallet
- Online Wallet
- Mobile Wallet
- Paper Wallet
1. Electronic Wallet
You can download this software or host it on cloud.
This can be formatted and stored on your computer and device.
These wallets are normally very user-friendly.
You become a third party holder of the wallet.
2. Software Wallet
You control the keys directly by installing a wallet.
Most of these wallets have a relatively simple configuration.
However, the problem is they need regular maintenance, and you need backup.
The problem is if your computer is lost or stolen, you may lose your bitcoin.
3. Hardware Wallet
These are very small devices.
They are very secure and can’t be hacked easily.
They are offline, but the only threat is these can get lost.
You can, of course, choose to keep these wallets in secure places like the bank vault.
4. Online Wallet
As the name indicates, this bitcoin wallet is stored in cloud.
With the proper password combination, you can access it from anywhere world over.
This is designed to enhance user convenience.
5. Mobile Wallet
These are like simple apps on your mobile phone.
They work the same way like other mobile wallets
You can use these for making an online payment via bitcoin.
6. Paper Wallet
In very simple terms, it is a piece of paper.
The private and public keys of a bitcoin address are printed on this.
They are ideal for long-term storage.
What Are the Best Bitcoin Wallets and How Safe They Are?
Here is the list of the best Bitcoin wallets that we chose to analyze:
- Hardware Wallets- Ledger Nano S
- Hardware Wallets- Trezor
- Hardware Wallets- Opendime
- Online Wallet- Coinbase
- Online Wallet- GreenAddress
- Software Wallet- Electrum
- Mobile Wallet- Jaxx
- Blockchain Wallet
- Paper Wallet- MyEtherWallet
Given the huge demand for Bitcoin Wallets, there are many of these variants.
Rankly, there is no way to identify which is the best one?
This is because every type of Bitcoin wallet has its own set of advantages.
However, safety is one cardinal issue that you must keep in mind.
You have to ensure that you choose a secure wallet.
The security of these wallets is most important.
Especially if they are not insured, you can lose your entire savings.
As a result, you need to look out for options that promise maximum security.
In that context, the safest one is hardware bitcoin wallets.
You don’t have the risk of hacking in these.
Neither is there any risk of the key being stolen or you losing the entire money.
But if you lose the key or lose the wallet, all your money is gone.
This is, of course, if you do not have the required backup in place.
In this context, the online wallet is the riskiest of the lot.
The keys are held by a third party, and you practically have zero control on your wallet.
However, if you see, most seasoned Bitcoin traders use a mix of these.
They have an offline and another online account.
The idea is they store the bulk of money offline.
Only a limited amount of spending is put in these online accounts.
Of course, your technical understanding plays a crucial role in this too.
Needless to mention, the online ones are definitely for people with better technical skills.
But, care is necessary at all times.
Whatever bitcoin wallet you might choose, you have to be careful.
Maintain proper backups and be cautious at all times.
This will help you maintain better track of your bitcoin wallet.
1. Hardware Wallets- Ledger Nano S
This is perhaps one of the most popular Bitcoin wallets.
Almost anyone who is dealing with Bitcoins knows about it.
This is also because this wallet has a unique feature.
It provides you a strong amalgam of some of the best features of various types of wallets.
It is essentially a smartcard based hardware wallet.
The private keys, in this case, are generated and signed offline.
This smartcard takes backup offline.
This enables a more secure operational benefit in this system.
You can also assign a PIN code to the smart card.
This provides a second layer of security to the whole set-up.
It also avoids the risk of potential physical theft or hacking.
The best part is this bitcoin wallet is compatible with a huge range of device.
Starting from computers to Android phones with Myceium or Green Bits, the range is huge.
As a result, a significantly large number of people can access this wallet.
2. Hardware Wallets- Trezor
This particular Bitcoin Wallet resembles a tiny computer.
Unlike Nano, this is not a smart card.
This one operates as a standalone self –sufficient unit.
However, the private keys for these have to be generated offline.
Additionally, a 24-word seed is generated once you set it up.
During back-up, this seed is copied and displayed in the Trezor’s inbuilt screen.
You can also add an additional passphrase if you see the necessity.
As this seed is not displayed directly on online computer, it provides complete security
This also acts as a second layer of security.
This is because anyone can misuse the account once they find the 24-word seed.
However, this additional passphrase will make sure no one else can access the fund.
But you must remember that you need this seed and passphrase always.
You cannot access the funds without this seed and passphrase.
In the absence of these two, your fund is lost forever.
So you have to be careful in terms of creating this passphrase.
Most importantly, you must take care to store these in a safe place.
If someone gets access to your seed and passphrase, then the security can be compromised.
3. Hardware Wallets- Opendime
This is a first of its kind, a Bitcoin Stick.
This USB Still enables you to spend the Bitcoin the same way as dollar bills.
You can connect it to any USB port t check the balance.
All you have to do unseal and you it when you need to,
So practically, it is like taking money out of your wallet.
So it can work on your laptop, desktop, phone, practically everywhere.
Normally this USB has a QR Picture or text file inside.
The Bitcoin address and support are stored within this.
The private is self-generated, no one knows including you.
So, no risk of forgetting the private key and passing it onto someone else.
The biggest advantage is this wallet is based on the primary Bitcoin features.
So, it has been able to adjust to the various changes in the Bitcoin world quite easily.
You can physically transfer this Bitcoin from one to another.
So you don’t incur any additional expense in the transfer of these either.
Moreover, there are no confirmation delays as well.
This particular Bitcoin Wallet uses message signing and normal Bitcoin payment address.
This particular wallet simplifies Bitcoin transfer to a large extent.
It actually becomes as simple as handing over a $10 Bill to someone.
There are no additional hassles or charges associated with it.
So even if you are not very technology savvy, you can use this Bitcoin Wallet with ease.
4. Online Wallet- Coinbase
This is a unique wallet provided by the Coinbase exchange.
Just like the exchange, this Bitcoin wallet is specially meant for beginners.
Needless to mention that it is easy to use and extremely convenient operationally.
As a result, accessing this wallet as well as using it is extremely convenient.
As this is an online wallet, you can use it from anywhere across the world.
But the point here is how safe is this online wallet?
Well, for beginners, this could be one of the most user-friendly alternatives.
The icing on the cake is you are not compromising the security of the user either.
There is a two-step verification process that makes it difficult for hackers.
You can also choose to use the convenience offered by Coinbase Vault.
This will add another much-needed layer of security to the users.
They can be relaxed about the way to store their currency as well.
All the Coinbase wallets are insured by the FDIC.
As a result, there is a basic minimum guarantee associated with them.
This means that users can have greater trust in accessing the account.
Moreover, you can transfer funds from these instantly without any associated fees.
You can also use the same wallet to buy fiat currencies.
But the only problem is that the options are limited in this case.
Coinbase allows only Bitcoin or Ethereum wallets.
So if you are invested in any other cryptocurrency, you have to transfer it first.
5. Online Wallet- GreenAddress
In case you are looking for other convenient online option, you can consider this.
This too is an extremely user-friendly alternative for cryptocurrency users.
This is a multi-signature Bitcoin Wallet.
You can access it through any desktop or other Android devices.
The additional advantage is that this type of wallet is compatible with some hardware wallets.
Several popular hardware wallets like Trezor, Ledger Nano are compatible with it.
So, a seasoned user will mostly access these in tandem.
They mostly store a bulk of the Bitcoin in a hardware wallet.
Only a limited sum is kept aside in the online wallet.
This is one of the best options of hybrid wallet.
In this way, you are not exposing your entire Bitcoin savings to potential theft.
You can maintain a healthy balance between available options.
The multi-signature element improves the security of the wallet as well.
In very simple terms, it means that you need manual confirmation.
So no transaction can happen without your manual intervention.
This is one of the most important aspects of this online wallet.
Most times, security is the biggest threat to any online wallet.
The multi-signature feature addresses just this factor in a concise manner.
It makes sure that your wallet has sufficient protection.
The relative chance of a theft is reduced to a large extent.
But at the same time, it remains a hot wallet.
Therefore, it is always advisable to use it in sync with a hardware wallet.
In that way, you can help protect your relative safety.
6. Software Wallet- Electrum
This is an extremely fast and effective wallet.
It is lightweight so you can easily install it on your desktop and mobiles.
It does not take up too much space, and at the same time, you can easily access it any device.
Needless to mention, this is also a very flexible wallet.
Most importantly, this also provides hybrid opportunities.
This means you can use this wallet in sync with hardware alternatives.
This software wallet is compatible with Nano Ledger, KeepKey, and even Trezor.
This means that it offers users the benefit of a dual wallet.
So you can easily maintain a secure online and offline wallet simultaneously.
This wallet too supports multiple signatures.
This means you can easily create a convenient safety net for your Bitcoin.
Moreover, it is not tied up with any centralized server.
So the potential hacking chances are minimized to a large extent.
This wallet has been operational for a long time.
This makes this online wallet even more credible.
7. Mobile Wallet- Jaxx
Well, carrying your Bitcoin is no longer a complicated process.
It is as far away as your mobile.
Now you can carry your Bitcoins pretty much in your pocket.
In fact, this is one of the world’s first mobile Bitcoin Wallet.
In terms of functionality, it is similar to other mobile wallets.
As a result, you have a variety of versions for different operating software.
So be it iOS or Android, desktop or laptop, there is a Jaxx variant that you can install.
Like many other online wallets, this one also uses a unique mnemonic seed.
You can use this to create a back-up or transfer wallet to another device.
So you can receive funds, transfer them and even make transactions using them.
Just like in case of a conventional wallet, you have a QR code to authenticate transactions.
Using these same QR codes, you can also take stock of your crypto holdings.
Many tech-savvy users prefer this wallet.
It has many interesting features like multiple platforms..
This one also enables shapeshift integration.
But as of now, stability is a major concern for this wallet.
The creators of this wallet need to look at achieving a better fit.
If these concerns are addressed, it can turn out to be an effective and efficient alternative.
8. Blockchain Wallet
It is one of the most popular Bitcoin wallets.
But at the same time, this is also relatively risky.
In many ways, its popularity can come in the way of its security.
Being very popular, a large number of Bitcoin users prefer it.
As a result, you have an equally large number of hackers targeting this wallet.
But the creators of this wallet addressed this concern using the AES encryption.
This also provides a double encryption initiative.
The biggest benefit of this wallet is it has numerous backup opportunity.
Users of this Bitcoin can create the backup in Google Drive or Dropbox as well.
Now we all understand the relatively better security prospects of these options.
This wallet also has a mobile wallet extension.
As a result of this clients get a more flexible and safe option to store bitcoins.
9. Paper Wallet- MyEtherWallet
If you want a private wallet without investing additional money, this is an option.
This helps you in creating a secure personal option like hardware wallet.
But at the same time, you don’t have to spend additional money for it.
You can just generate a wallet online on the company’s website and then note down your private keys.
Though paper wallets are free, there is a reason why it is not that popular.
The sole reason is you need to undertake detailed studies to master it.
Without the sufficient and requisite know-how, you can compromise your account quite simply.
In short, this is not a wallet for Bitcoin newcomers.
This is ideal for seasoned Bitcoin users who want to save every additional penny and invest it.
So, How to Choose the Best Bitcoin Wallet
So, on an average, you have a wide range of Bitcoin wallets now.
But choosing the right one can be tricky.
You have to look for the best fit in terms of usability as well as security.
These two factors alone can help you make the best choice.
Most importantly, you will have to look at your technological competence.
All of these considerations together can help you choose the best bitcoin wallet.