How to choose a bitcoin wallet?

  • Ultramining.com
  • 17:50 Feb 15, 2023
How to choose a bitcoin wallet?

Bitcoin has experienced a protracted fall over the past few months and is still the most attractive cryptocurrency for investment and trading. Many traders and investors prefer to deal with such an asset because you can make good money on it. And the fall in the rate makes many new investors think about buying BTC before it starts to rise again at an explosive pace.

However, this raises the question of storing digital coins. To solve this problem, you need to find the best wallet for bitcoins out there. In this article, we will tell you which digital wallets for bitcoin you should consider.

How to choose a bitcoin wallet?

It is important to choose the right place to store cryptocurrency savings. Especially because scammers are on the alert and often create services offering to create a wallet. Naturally, you will no longer see anything on your bit wallets.

Since bitcoin is the pioneer of the market and the most popular digital currency in the world, transactions with it are supported by the maximum number of wallets of different types. All wallets can be divided into 5 categories:

  • Web wallets
  • Desktop wallets
  • Mobile wallets
  • Hardware wallets
  • Paper wallets

Web wallets

Web wallets are created online on cryptocurrency exchanges. Online wallets are considered the most insecure because they are registered remotely, the data is stored on a server that can be accessed 24/7 via the Internet, which means that they are subject to hacker attacks. 

However, with web wallets you can not only store your coins there but also earn on transactions with them. Moreover, thanks to all additional security measures, this type of cryptocurrency savings has become more reliable.

The most reliable web wallets are Cryptopay, Xapo, Coinkite, Coinbase, BitGo, Hive, StrongCoin, etc.

Desktop wallets

These kinds of applications can be downloaded from a public site and installed on your PC. These programs are considered more reliable and easy to use than their online counterparts.

In terms of reliability, wallets from cryptocurrency developers are the most secure, for example, Bitcoin Core or Ethereum Wallet (Mist) applications. At the same time, they are less functional compared to universal programs, since they support only one cryptocurrency. Of the most secure and popular desktop types of bitcoin wallet, it is worth noting Exodus, Coinomi, Jaxx, etc.

Mobile wallets

All the most popular crypto wallets have versions not only for PC but also for smartphones. Storages of this type are simple and convenient, they are designed for smartphones and tablets. A bitcoin mobile wallet will come in handy if you use BTC to pay for goods and services.

Most of these apps have similar strengths and weaknesses as their desktop counterparts. Applications can be downloaded from AppStore or GooglePlay. Among easy wallets for bitcoin storage are Mycelium, Blockchain, BitcoinWallet, Coinbase, and others.

Hardware wallets

This type of wallet is considered the most reliable for storing digital currency since access keys are generated locally and stored on a special flash drive. In addition, secure chips are used to protect against hackers and viruses, PIN codes are used to confirm operations. The cost of a suitable option ranges from 50 to 100 US dollars.

However, this type of wallet also has disadvantages - to make transactions, you will constantly have to drive money from hardware to an electronic crypto wallet and back. Thus it is recommended to use a flash drive for long-term storage of cryptocurrency and large transactions. In this regard, the most secure bitcoin wallets are Trezor, Digital Box, Cool Wallet, Ledger, and KeepKey.

Paper wallets

Another option for more secure storage of digital money would be a crypto wallet on paper - a piece of paper, the size of a banknote, with a printed public and private key. The cost of this wallet will be much lower than a hardware one.

This wallet also has a high level of security. In this case, the keys are printed on paper and stored in a safe place. But a paper wallet has a flaw - you can transfer only the funds stored on the balance sheet. This is not very convenient, because paper-type storage is used only by some users.

Selection criteria

When you ask yourself what is the best wallet for bitcoin, the main thing that comes first is data security. Choosing good wallets for bitcoin storage isn’t simple, so first think about how you are going to use it: only on the Internet or pay for goods and services offline. Also, don’t forget to consider the following factors:

  1. Transaction control method
  • Full. You are fully responsible for the safety of funds.
  • Joint. The transaction requires confirmation from a third party.
  • Partial. A third-party service is responsible for security, but you have access to the funds.
  1. Code transparency
  • Basic. Does not provide a 100% security guarantee.
  • Full. Open source, any developer can test the security.
  • Remote application. Depends on the service from which the data is loaded.
  1. Check out procedure
  • Simplified. Takes less time, and may be unsafe.
  • Full. Downloads the entire blockchain, takes a long time, and requires a lot of free disk space, but should provide more security.
  • Centralized. Carried out with the help of special services.
  1. Privacy
  • Base. Information about your transactions is sent to other nodes.
  • Elevated. Your data will not be sent to other nodes.

Summary

Each wallet has its characteristics and offers its ways to protect data. Some of them combine, for example, mobile and desktop versions. The choice depends on how often you plan to use bitcoins, how much you plan to store and how you will spend the funds. Answer these questions in advance and decide which option is suitable for you.

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