Last Updated on July 6, 2022 by Shounak
The cryptocurrency wallet is the safest way to store Bitcoin, Ethereum and all other altcoins. Understanding the use and purpose of cryptocurrency wallets is imperative to use them properly.
Cryptocurrency wallets store your Bitcoin and can be downloaded to your computer or phone. The most popular cryptocurrency wallets are centralized and online like Coinbase, not open sources like Blockchain and Xapo, but these are centralized services, and coins are stored on their servers.
Even though they are a great starting point, there is no way to ensure they will always be reliable and safe. Another important thing is that you cannot manage your private keys if you have a wallet on a centralized service. But, the question is, How do you choose the best cryptocurrency wallet to store your Bitcoin safely and securely?
The best cryptocurrency wallet for a user should be a hardware wallet as it is very secure (you control your private keys) and provides an unmatched security level. But, others like software wallets are also secure, safe and free. These wallets are free to download and support mobile and desktop operating systems.
Let’s first look into the kinds of cryptocurrency wallets available.
Kinds of Cryptocurrency Wallet:
There are two kinds of cryptocurrency wallets presently available, and they are:
- Hot Wallet
- Cold Wallet
A hot wallet is always connected to the internet. The most prominent example is a wallet installed on your smartphone, which is always connected to the internet.
They are categorized into three kinds: web wallet, mobile wallet and desktop wallet. We will compile both mobile and desktop wallets as an online wallet.
As the name states, these are cryptocurrency wallets that are always online as mobile wallets & desktop wallets. Using them only when you want to perform a transaction is recommended. They are not recommended for high storage purposes or for long-term holding.
They are those wallets that are maintained by a third party on the web and are always online. The best example of web wallet is Coinbase and Exchange wallets. They are not at all recommended for storage purposes.
This type of wallet is not connected to the internet and is usually on some device or paper. This wallet is also known as the offline wallet and is the safest among all wallets.
These wallets are used for long-term storage, and cold wallets may cost to purchase the device. There are mainly two kinds of cold wallets and, which are hardware wallets & paper wallets.
One of the safest wallets considered by the cryptocurrency community, this wallet doesn’t come for free; you need to buy it if you have invested your money to purchase many satoshis. The hardware wallet has a USB, so you can easily connect with your computer and send your bitcoins.
It also can connect with software wallets using an interface built by the manufacturer to simplify your life.
Creating a paper wallet was meant to write down the private key and the Bitcoin address. It was used in the early days but, is no longer used now. It is not recommended for storage purposes as the chance of losing or misplacing the paper by the user is very high.
Best Cryptocurrency Wallets for Bitcoin
Below are the best cryptocurrency wallets to store your Bitcoin. Let’s first start with Cold wallets and then we will discuss Hot wallets.
Ledger is a hardware wallet which means it is not free. The cost of purchasing a ledger wallet is much less than the security and protection it provides. As an owner, it is a USB device that you can carry in your pocket as it is an upgraded version of a USB.
We recommend it as it stores the private key offline. A user can always create a backup of the wallet without any issue, providing a simple-to-use interface. If you are confused about using it, they have good support and manuals available on their website.
Tezos is another hardware wallet with the same feature, but the cryptocurrency community less recommends it because of its functionality and user interface.
It is also a USB device, but it does not provide the features and technology of the Ledger wallet. Being a multi-cryptocurrency wallet, it does not support a lot of cryptocurrencies.
It does support Bitcoin and other major cryptocurrencies. But, it will not be enough for the crypto community as every day, there is a new project that might change the world.
The Keepkey hardware wallet is one of the most secure ways to store your cryptocurrency. The wallet is designed to work on any computer and is simple to set up, making it easy for all to use.
The Keepkey wallet supports multiple cryptocurrencies, making it an excellent choice for those who want to store more than one type of coin. The Keepkey has a large display, making it easy to view your transaction history and verify each transaction.
The device also features a small button which must be pressed to confirm each transaction. This added layer of security ensures that you are in control of your funds at all times.
The Keepkey hardware wallet is an excellent choice for those looking for a secure way to store their cryptocurrency. The wallet is easy to use and supports multiple coins, making it a versatile option for all types of investors.
As mentioned earlier in this post, a hot wallet is a wallet that is always connected to the internet. Mobile wallets are the best example of a hot wallet. Below on the best cryptocurrency wallet for Bitcoin, we will look into mobile and desktop wallets.
A mobile wallet is the best for those using cryptocurrency assets for trading or online purchases. As mobile wallets are always online, they are not as secure as hardware wallets.
It is always advised to keep a small number of your assets in these wallets. The following are the most trusted and best cryptocurrency wallets for mobile.
Why are we recommending your Lumi wallet from the above list? Because it offers a very high level of anonymity to its users. It provides client-side encryption, which in simple terms means everything stays in your device and never goes to a third party.
Other promising features of this wallet are:
- Buy crypto with a credit card.
- Built-in exchange.
- Browse dapps without leaving the wallet.
- Real-time crypto price.
- Supports EOS and ERC-24 tokens.
A desktop wallet is a cold storage wallet, depending on how extended your desktop has been online. But, in this age of connectivity, every computer is always online. I do not consider it cold storage and will never recommend you.
As soon as you go online, your system will ask you to download updates, and if you do not have your Private key written on paper, you will lose everything.
Web wallets are third-party-controlled wallets. Such wallets are never recommended to store your cryptocurrency assets. They are costly, unreliable, and do not provide you with a private key to your wallet. Below is the list of the best cryptocurrency wallets available on the web.
So, Which wallet do you think fits you according to your requirements?
Follow these simple rules, and you will be safe and secure:
- For trading and transactional purpose, hot wallets are the best.
- Holding purpose cold storage or offline wallets are the best for the long term.
- Always create a backup of your wallet.
- Always keep your Private key and backup words somewhere safe.
- Never reveal your Private key and backup phrases to anyone.
- Never trade or open your wallet in public places.
In the end, I would like to Thank you for reading this article about why you should invest in Bitcoin in 2022? We publish fresh content every Tuesday, Stay updated by following us on our Social media handles.