A bitcoin wallet is similar to the bank account that you use to keep your money and make transactions. A bitcoin wallet has a public address that consists of a sequence of numbers and letters. It is submitted to the third party you want to receive the payment from. Nowadays, various types of bitcoins wallets are available to store bitcoins and other cryptocurrencies. These wallets range from hardware wallets to online/web wallets to even mobile wallets. It provides us the feature storing our own private keys which gives the users the right to transfer or spend their bitcoins. Before selecting the wallet, you should think about how you are going to use your bitcoins. Make up your mind which type of wallet suits you the best fro a specific purpose.
Types of best bitcoin wallet:
- Software wallets: It’s most convenient for people who work most of the time from their desktop and laptop devices. Installing a bitcoin wallet directly on a computer allows the overall access in your hands. Moreover, the configuration of the software wallets are super easy and they are free too. An advantage of a software wallet is that it requires little technical knowledge. You have complete ownership of your private keys and its easy to send and receive. The disadvantages of software wallets are that they can be corrupted or can go in the wrong hands if the device is stolen.
- Mobile wallets: Choosing a mobile wallet for trading purpose, can be useful for you if you use bitcoin on a daily basis. A mobile wallet will run on your smartphone in the form of an app and will store your private keys inside it. It’s recommended avoiding placing a big amount of money into a mobile wallet. You can use it as pocket money at a land-based business that accepts bitcoins. Along with being convenient to use, mobile wallets are highly prone to hackers attacks.
- Paper wallet: A paper wallet is a document that holds a public address and a private key inside it. These components allow you to store, buy or sell bitcoins. Paper wallets are computer printouts with your private keys written on it. The advantages of paper wallets are that they have flawless digital security, they are relatively portable and you have the complete ownership of your private keys. The disadvantages of a paper wallet the risk of natural damage such as fire, water, etc. It takes time for setup and transacts with and you should have some technical knowledge too.
- Online Wallets: You can use online/web wallet to store your private keys and trade through them. Online wallets are very attractive and comfortable for new users because of their accessibility, easy handling, and very low cost. No installation is needed on the user devices they are hosted on a remote server and are accessed from desktop, laptop, and any other devices that have an internet connection. While using an online wallet, your private keys are stored on the server of that company which is providing you the services. This is the major drawback when it comes to storing funds as all your data is stored on an online server which is owned by someone else.
- Hardware wallet: In a hardware wallet, you as a user can store your private keys in a secure hardware device. Hardware wallets are secure and resistant to computer viruses. In hardware wallets, you get an added layer of security with the screen available in some of the hardware wallets. This screen can be used to verify and display wallet details. The advantages of hardware wallets are extreme security, they are relatively portable, you have the complete ownership of your private keys, built-in transaction functions.
Best bitcoin wallets:
- Coinbase: It’s one of the most popular, largest and reputed web wallets out there. Coinbase has an Android and IOS mobile app in addition to a convenient web interface. Exchanging fiat currency into bitcoins is made quick and easy with just a few mouse clicks.
- Blockchain wallet: Blockchain is another high-security web wallet with the 2-factor authentication and multi-signature option. It has android/ios with a recently integrated feature of buying bitcoin on the android bitcoin wallet. The service stands out for its simplicity and intuitive interface.
- Exodus: This is a multi-asset desktop wallet with very high anonymity as no account setup is required. The service does not support fiat currency exchange into bitcoins so you would have to buy bitcoin from somewhere else like Coinbase, and then you have to transfer it into your exodus wallet. An amazing thing about this wallet is that it runs on your PC and features a backup wizard to increase your control of assets.
- BTC.com wallet: The BTC wallet is an open-source wallet with great recovery options. The wallet is available for desktop, android and ios devices providing efficient security and advanced multi-sig technology.
- Electrum: A free cold storage wallet, full of features that elevate security and anonymity. Private keys are encrypted locally and are not submitted to the servers. Private keys are easily exported to other bitcoin services and the electrum platform is supported by hardware wallets like Trezor or Ledger. The two-factor identification involving TrustedCoin adds another layer of security to your bitcoin wallet.
- Trezor: It is one of the best hardware wallets on the markets that secures your cryptocurrency from being stolen. In case of losing the device, the user is able to recover the coins and gan access to accounts with the help pf a PIN. It features multi phrase encryption, a small display that shows important transaction details. An multi-web interface for making and receiving payments and an unparalleled level of cryptocurrency protection.