October 23, 2020

Best Bitcoin Wallets

Best Bitcoin Wallets

Bitcoin is a very popular cryptocurrency. There are a lot of different wallets created for it. Beginners often don’t know what they are and how to choose the best wallet. A lot of people don’t even know the answer to “What is a Bitcoin wallet?” and “What is the difference between a classic wallet and wallet for cryptocurrency?”.

What is a Bitcoin wallet?

Best Bitcoin Wallets

A Bitcoin wallet is a place where cryptocurrency is stored. In simple words, this is a place where private and public keys are kept. A private key is your personal identification in the Blockchain network. The money is connected to it. That’s why you are not supposed to lose your private key or give it to other people. You won’t be able to make any transactions with your cryptocurrency without it. Other people can carry out all transactions using the private key and steal your money if they are dishonest.

Public keys can be told to other people. This is an address that allows other people to know where to send you the money.

Best Bitcoin Wallets

There are these basic types of wallets:

  1. Online wallets. This is the least safe option, but the most convenient. Online wallets can be registered via your web browser and can be used from any place you want.
  2. Paper wallets. This type of wallet is the safest. But you need to have more than one paper wallet to protect your money from being lost. This is a simple piece of paper with the public and private keys.
  3. Hardware wallets. This is a type of device that can be connected to a computer and the user can store money on it. Usually, hardware wallets are created for different cryptocurrencies. This is one of the best of their advantages.
  4. Software wallets. This is a big type of cryptocurrency wallet that can include online, mobile, and desktop wallets.

Hot and cold wallets

Also, all types of cryptocurrency wallets are divided into two categories. These are hot and cold wallets. Let’s describe the main differences:

  1. Cold wallets are the safest. They are stored on your computer without an internet connection. You need to download the whole blockchain to use them. The size of the files that are part of Blockchain is about 100 GB. That’s why you need more than 1 day even if you have a good internet connection. Also, you are not supposed to forget where your keys are. Yet, the stability and reliability of this type are much better than hot wallets. The paper wallet is also a type of cold wallet because you don’t have to have an internet connection to store it.
  2. Hot wallets require an internet connection. The blockchain is stored online. That’s why you don’t need to download it to your computer or phone. This type is great if you often use mobile phones for payments. However, this type is less safe than cold wallets.

Main criteria

Best Bitcoin Wallets

There are some criteria that have to be considered before you choose the cryptocurrency wallet:

  1. Safety. It’s your money. That’s why a great cryptocurrency wallet has to be safe and protected from hacker attacks.
  2. Transparent. This is a universal requirement for every blockchain network. This is the main advantage of cryptocurrency.
  3. Protected. The private key should not be told to other people by anyone.
  4. Checking of transactions. Every transaction must be confirmed.
  5. Easiness of money management.

Also, you need to understand your goals to use cryptocurrency wallets. For example, mobile wallets are better for using small amounts of money. For example, you can carry out some payments using them.

If you want to store a big amount of money, only cold hardware wallets are the best choice for you. No one can steal money from your personal computer or device without the internet connection. You’d better have different wallets for different goals. For example, you can have a cold hardware wallet where the majority of your money is stored. Then, you transfer some amounts to your online wallet and carry out the transactions directly.

If you want to keep your money protected, you’d better use options where you need to download the blockchain to your computer. You need to be disconnected from the Internet after that because all your history of transactions can be opened to other people even if you use TOR.

The specialists recommend diversifying your money between 5-10 different wallets stored in different places. This is beneficial if you have a huge amount of money. However, if you have $1,000, it isn’t so necessary for you.

Let’s describe every type of wallet in detail.

Online wallets

You don’t need to download the database to your computer if you use an online wallet. You can use any device you want, create contacts, and make carrying out the transactions simpler. However, you have to trust the creators of this wallet because you actually give your money to them, and they can do all they want with your finances. Only you are responsible for your money in this case.

The best online wallets are:

  1. Coinbase.com. This website supports different cryptocurrencies. For example, you can keep Bitcoin, Litecoin, and Ethereum there. The interface of this service is very easy and convenient.
  2. Cryptopay. This is one of the most popular wallets that also supports different cryptocurrencies. It was created in 2013 in Great Britain.
  3. Blockchain.info. This is the most famous and oldest online cryptocurrency wallet in the world. It is localized to a lot of different languages and has a mobile version.

Hardware wallets

As we know, hardware wallets are useful if you want to protect your money, but they aren’t very convenient. They can be both hot and cold wallets depending on whether you have the internet connection or not. The most popular devices for keeping cryptocurrency are:

  1. Trezor. This is the first cryptocurrency wallet in the world with safe Bitcoin storage with a possibility to spend money as easily as if you had an online wallet.
  2. Ledger. This hardware wallet developer creates different cryptocurrency wallets in different price ranges.
  3. KeepKey. It is another hardware wallet with its own screen.
  4. Cool Wallet. This is a very secure hardware wallet for iOS or Android.

Software wallets

Software wallets are a type of hot wallet. You need to have a computer connected to the internet to use them. As it was mentioned above, you don’t need to download all blockchain to your computer if you use a software wallet. Also, you can use them on your Android or iOS device. Let’s describe some excellent software wallets.

  1. Electrum. There are two versions of this wallet: portable and not-portable. It works very fast and is simple to use. Electrum uses external servers for accepting transactions. It decreases the size of the data you need to download. However, your data is sent to other people. This fact decreases the level of reliability of these wallets. Yet, this is one of the best Bitcoin software wallets.
  2. Jaxx. This wallet supports several coins, which is the best advantage of it. You can see the information about tokens using the tabs that can be easily switched. Unfortunately, the functionality of this wallet is quite small. You can use only basic features: send money, look at the history of transactions, etc. The disadvantage of this cryptocurrency wallet is a very short password consisting of four numbers. It’s very easy to guess. Also, this wallet supports synchronization with other devices. That’s why you can have more than one wallet with all money. You can download Jaxx from the official site.
  3. Exodus. This wallet is similar to Jaxx, but it has one interesting feature – returning the key with email. This wallet supports different coins, which is another advantage of it.

To sum up, there are a lot of different cryptocurrency wallets. Each of them is created for different goals.