Crypto wallet, Bitcoin wallet, virtual wallet – we bet these words sound familiar. Want to learn about them in more detail? Safetrading offers you the most comprehensive guide on Bitcoin wallets, as well as a list of best of the best.
But if to be completely precise, coins are not stored anywhere – users simply receive data, which gives access to private accounts. In addition, Bitcoin wallets allow sending and receiving crypto.
You have probably heard of hot and cold wallets, private keys, and other unfamiliar terms. But don’t worry – we have made a blockchain wallet review with the only goal of explaining everything.
Let’s start with the fact that for any person that is trading or hodling crypto, the presence of such a wallet is a vital necessity.
Crypto is compared to electronic money. Thus, you can match a cryptocurrency wallet to the one, where we store money.
But before we proceed with storage types, let’s find out which one is the best crypto wallet when it comes to usability and security.
We guarantee that you won’t find a more updated and clearer article no matter how hard you try!
Hot Wallets VS Cold Wallets
The only difference between a hot and a cold cryptocurrency wallet is that the first one operates only when connected to the Internet, while a cold one can work even without it.
Hot crypto wallet representatives are less secure because there’s always a risk of losing sensitive data via the Internet. But they are more popular among users.
Cold wallets are safer.
Choosing a cryptocurrency wallet app and deciding what the safest crypto wallet is, depends on your goals.
If you regularly make small transactions, stick to hot wallets. But if you plan to HODL for a while, a cold wallet will be a better idea.
To access your crypto wallet, as well as to receive and send Bitcoin, you need to enter a private key.
I guess there is no need to explain that when losing the key or when it ends up in someone else’s hands, you may lose all the coins.
That is why it’s so important to store the key in a safe place that no one else has access to. Some wallets store keys offline, others – online. So it’s only up to you to decide which one is the best crypto wallet in terms of key storage.
When discussing the cryptocurrency wallet we couldn’t pass by multisig ones. For making a transaction they require the participation of other people.
In other words, all sides of the transaction should enter their own codes. Such wallets are usually perfect for family usage or business.
Some crypto wallet representatives allow storing only one currency, while others can deal with many of them.
For example, such wallets as Exodus allow storing Bitcoin, EOS, Ether, Dash, and other currencies.
Moreover, the best multi cryptocurrency wallet allows converting one coin into another. So if you receive Bitcoin and want to exchange it on Ethereum, multisig wallets are exactly what you need.
You can also turn to such wallets as Trustee, Ledger Nano, and KeepKey. However, the last two are hardware wallets.
It’s difficult to say which wallet supports the most coins because new types of crypto are added on regular bases allowing wallets to compete for users’ attention.
Custodial VS Non-Custodial Wallets
Custodial crypto wallet representatives don’t give users access to private keys and simply store them on servers. The main benefit of such a wallet is that you can restore access if the password was lost.
The drawback is that the cryptocurrency wallet account may be frozen in case of any intervention or during hacker attacks (which happen quite often).
A non-custodial blockchain wallet operates in the opposite way – you gain total control over the access without using servers.
Cons of using these wallets are that when losing the private key you won’t be able to regain access to the account.
For example, if you have lost your laptop or smartphone, restoring access to the account may be possible only by using the seed phrase. It’s given when opening an account.
Well, of course, if it’s not stored on the device that you have lost.
At the moment, you can pay attention to Trustee, Jaxx, Copay, Coinbase bitcoin wallet, and other representatives.
Types of Wallets
Bitcoin wallets are not limited to one option, so users can choose from five types of crypto wallets – web or online wallets, mobile wallets (installed on smartphones and tablets), local wallets (which run on computers and laptops), hardware wallets, and paper ones.
Below we’ll familiarize you with each of the types, so you could choose the best crypto wallet depending on the needs and expectations. For example, if you’re planning to store a big number of coins, it’s better to choose a hardware wallet.
But when speedy transactions are needed, you can turn to Blockchain.info or Trustee.
After reading the guidelines below even bagholders will find a wallet to their taste!
Such representatives as KeepKey, Ledger Nano S, and Trezor wallet give access to coins with a high protection level because closed keys are stored only in the wallet’s memory.
Even though they may cost from $60 to $100, such wallets allow secure transactions without fear of hacker attacks.
Such wallets are perfect for receiving and storing Bitcoins. Once the coins land in a wallet, one part can be transferred to another place for regular usage, while the main part will be safely hidden on a hardware wallet.
As we have mentioned above, such wallets don’t need downloading blocks.
All the data is available through servers. Such a cryptocurrency wallet is very easy to manage when using tablets and laptops. They are fast and convenient.
There is only one but:
Everything that requires verification is conducted by a third party, which bears harm for security. Luckily, you still own the private keys.
Thick wallets require uploading a full blockchain copy on the computer. Such a wallet is called Bitcoin Core. A thick wallet is a full network node, which not only allows managing a personal account but also supports blockchain viability.
A thin desktop crypto wallet occupies only a few MB of memory and takes several minutes to install. It’s a client program, which doesn’t require uploading all the blockchain. It allows for conducting transactions and creating bitcoin-addresses.
These wallets don’t interact with the network directly (unlike thick ones) but through developer’s servers. Thus, they are less secure. Examples of desktop wallets are Jaxx, Electrum, and Exodus.
If you need a break, go and grab some coffee, we’ll wait!
By now you know that it’s impossible to say which wallet is best for cryptocurrency. We can simply tell you about the pros and cons of every type to simplify the choice.
Browser wallets have a series of advantages.
First of all, there’s no need to download all network blocks, which saves lots of time both during the first loading and during each run. Managing such an account can be conducted on multiple devices no matter where you are.
Just be sure there is a solid Internet connection.
Most of such services offer additional perks like sending coins on emails or indicating sell phone numbers. Users can also send notifications and use address books.
But no matter how good it sounds you shouldn’t forget that when using any online wallets there is a risk of losing your money. When the service is hacked, your crypto can be stolen.
Thus, the coins’ safety is on you.
The most popular online storages are Blockchain.info, Bitpay, Cryptopay, Xapo, Matbea, and Coinbase best crypto wallet.
The good news is that you can have multiple wallets, so if you think that hardware or a desktop wallet is not enough, it’s the right time to discuss a mobile one.
To get a cryptocurrency wallet of this kind you should just own a smartphone that runs on Android or iOS. Transactions can be made using NFC technologies or QR-codes.
Wherever you are, any time of the day and night!
Great examples of these wallets are Bitcoin Wallet, Airbitz, and Mycelium.
Sounds weird, huh?
But don’t be surprised and read attentively. Especially if you want to store cryptocurrency for a long period.
A paper wallet is a piece of paper, which contains a printed version of open and private keys in the form of a QR code. You just need to scan it before using the wallet.
As a rule, paper one is the best crypto wallet in terms of safety. Here are the reasons why you should use it:
1. Such a wallet is convenient. It doesn’t take much time or skills to start an account. Using hardware wallets is more difficult and energy-consuming;
2. It is autonomous. Such wallet is not available online and is protected from hackers and scammers. Your coins are represented as a piece of paper and can be compared to a cheque. With its help you can use funds or give them to others;
3. There are no equipment issues. Paper wallets are safer compared to hardware ones, which can be damaged and undergo software malfunctions;
4. Easy to pass on. If something happens to the crypto owner, relatives, and beloved ones will hardly get access to an exchange or hardware wallet. But a paper one can be easily stored as a valuable asset in a drawer.
Ways to Make Bitcoin Storage Safe
Choosing the best crypto wallet is not enough. You bear responsibility for the coins and can always use additional measures to protect your funds. Here’s what we recommend:
1. Encryption. Almost every Bitcoin client has such a feature and doesn’t require being a tech geek. Just encrypt the wallet using TrueCrypt or Bitcoin Core. This will significantly increase the safety of the wallet (but doesn’t provide complete inaccessibility to hackers);
2. Backups. This is one of the best ways of protecting a crypto wallet along with complex passwords and two-factor identifications. Make sure to have regular backups of the wallet and leave them in several places: disks, flash drives, etc.;
3. Complex passwords and two-factor identifications. Use imagination and instead of an obvious password with your dog’s name try coming up with a difficult set of letters and numbers;
4. Cold storage. Another way to protect the wallet is to store coins offline, so hackers won’t be able to gain access to your money online. Private keys are not stored on the web, so it’s impossible to steal them through the Internet.
A bitcoin wallet is a vital necessity for those, who are somehow related to the cryptocurrency world.
There are many types of wallets and we have described each of the above. Now you can choose perfect storage depending on your activities, crypto volume, and frequency of operations.
Still waiting for our opinion?
Well, for our everyday operations we have chosen a hot non-custodial mobile wallet and a cold one for storing bigger sums.
New to the crypto world and only learning about the basic features and terms?
Go ahead and read this article, where you’ll find everything about crypto signals and providers.
Trust us, they are needed for profitable and smooth trading.