You are probably storing your cryptocurrency at an exchange like Coinbase, which is ideal for small amounts. However, it is preferred that you get a bitcoin wallet if you plan to expand your funds.
The reason why the bitcoin wallet is preferred lies in the amount of security offered by it.
Having a cryptocurrency wallet means that only you can access your digital currency. Moreover, you will have a private access key to your wallet that only you will know.
Lastly, storing digital currency on a third-party website makes it vulnerable to thefts and hacks. Therefore, a bitcoin wallet ensures unmatched security and protection of funds.
In this article, we have consulted people at reputable crypto venture capital firms such as CryptoMinati Capital to find the best bitcoin wallet options for you.
3 Best Bitcoin & Cryptocurrency Wallets of 2022
- Ledger Nano X: Overall Best Bitcoin Wallet, Editor’s Choice
- Trezor Model T: Top Harware Wallet Company for Wallet Purchase
- Ledger Nano S: Best Crypto Wallet To Buy Bitcoin
#1. Ledger Nano X: Overall Best Bitcoin Wallet, Editor’s Choice
According to reviews, the Ledger Nano X is the best crypto wallet currently available in the U.S. In addition, this wallet contains high spec security features. So, you do not have to worry about hacking attacks or theft of any sort.
The Ledger Nano X supports a great number of crypto coins. As a result, one wallet is enough to secure your coins. In addition, the Ledger Nano X is a hardware wallet, and it is also known as the cold wallet because it offers offline storage.
You can connect this wallet to your device using a USB or a Bluetooth connection. So, Ledger Nano X gives you multiple options. You can use the Bluetooth connectivity of your phone if you do not have a USB port.
Using the Ledger Nano X, you can buy or manage your crypto whenever you want and anywhere you are. So, the usage of a wallet will not geographically restrict you, as you can check your coins and manage them even if you are enjoying your summer vacations away from home.
Moreover, Ledger Nano X ensures speedy services, so you can buy and exchange your crypto in mere seconds. Moreover, the wallet is simple to use, so you do not need any technical knowledge to use it.
- Supports 1,500+ cryptocurrencies
- Ensures high security
- Features an intuitive design
- Device is mobile and computer friendly
- Price is higher than other wallets
#2. Trezor Model T: Top Harware Wallet Company for Wallet Purchase
Trezor Model T is the easiest hardware wallet. So, you should get this if you are a beginner, as this wallet ensures high security for first-timers who want to invest in a large number of coins.
- Unlimited wallet storage
- Touch screen interface
- Supports more than 1,600 currencies
- Supports SD cards
- Expensive to use
- Certain security flaws exist
#3. Ledger Nano S: Best Crypto Wallet To Buy Bitcoin
The Ledger Nano S is the smaller and cheaper version of the Nano S. Ledger Nano S is known to be one of the top and most secure hardware wallets available today. So, you can store your bitcoin in this wallet without fearing theft. They provide one of the best hardware wallet support facilities.
The downside of the Ledger Nano S is that it has only 18 applications compared to the X’s 100 applications. However, the Ledger Nano S has a huge storage capacity, so you can store your bitcoin in enormous amounts.
Moreover, you can store your bitcoin in an offline manner. This makes it even better, because offline storage ensures greater security and is safer compared to online storage.
- Supports more than 1,500 crypto coins
- Allows you to set a 20-digit recovery password
- Offline wallet ensures protection of coins
- Beginners might find it hard to use
- Limited to 18 applications only
How We Made This List of the Bitcoin Wallet
There are a number of factors to consider before choosing the best bitcoin wallet. Therefore, we made sure to consider the following before making this list.
- Company Reputation
First, we considered the years of experience, and we also looked at who is running the financial company, what methods they use to store your data, who has access to your private keys, whether your account is insured, and whether the brand has experienced any incidents of hacking or theft.
We looked at reviews to see whether users had any complaints regarding the services as well. After carefully considering what they had to say, we shortlisted the most reputable digital wallet providers.
- Technologies Used
People want to know how you are securing their information, which includes the security of your private key. You might want to know whether the company holds your private key or if it is held on their server.
Therefore, we shortlisted brands that held private keys with the users, because holding keys at the server are riskier. In addition, we checked whether the wallets had two-factor authentication.
- Back-Up Features
You might have bad luck with your computers. This means your computer can die down anytime, or the rainy weather can make your laptop perspire anytime. Keeping this in mind, we made sure the wallets offered proper backup.
So, we picked companies that offered backup procedures. Some of their back-ups included rescue links, passwords, and a pin code to get everything back and running.
- Multiple Cryptocurrencies
A lot of wallets allow you to trade different cryptocurrencies in one place. So, we selected wallets that supported most cryptocurrencies. This is because a multi-coin wallet makes it easier for you to exchange any coin you want without getting another wallet.
- Conversion of Cryptocurrency
Converting one cryptocurrency into another can be hard. Therefore, we ensured the wallets we selected had integration built-in, allowing users to convert their coins into another cryptocurrency.
We checked whether users could access a single wallet across multiple platforms. Unfortunately, some of the wallets do not work on multiple devices because of security factors. However, the availability of one wallet on multiple platforms ensures ease.
- Customer Service
The market value of cryptocurrency is volatile, as it changes with the market conditions. Therefore, the customer service of a company is extremely important. So, we checked how prompt each company was in addressing issues of clients.
After considering all of these factors, we shortlisted the five best bitcoin wallets. Along with reviewing all of these factors, we also read different articles to learn about customer reviews concerning each wallet.
Beginner’s Guide to Best Bitcoin Wallet App
Crypto is a pretty new age investment system. Therefore, it is understandable if you are not too familiar with all aspects of it. In order to get on the crypto bandwagon fully and reap all of its worth, all you have to do is understand how crypto works and choose the best company to work with.
We have created a list of factors that will help you understand the bitcoin wallet.
- Cryptocurrency Wallet
Before anything, you need to understand what a cryptocurrency wallet is. This is a software wallet that helps you store your private keys inside the wallet. Your wallet uses these private keys to interact with the blockchain.
After that, the wallet gives you access to view your balance and buy or exchange your cryptocurrency. In simple words, this wallet is more like your ATM at the bank, which allows you to access your funds stored at your bank.
Remember that the blockchain ensures maximum security and keeps a record of all of your crypto transactions. You must also remember that your wallet will not contain any physical coins, but only digital crypto coins.
- Exchange of Money Through the Wallet
With the help of a wallet, you can easily send and receive how much money you want. All you have to do is insert the kind of crypto you want to send and the wallet address of the person you are sending your crypto to.
When you make this transaction, the balance at the receiver’s end will increase, whereas your number of coins will decrease. This transaction will be recorded on the blockchain, so you cannot change it later.
Therefore, this is an important step, and you have to make sure you choose the company that offers easy money exchange.
Before you use the crypto wallet, make sure you look for the main features in that wallet. Generally, crypto wallets come in three types — hardware, software, and paper. So, read about these types in detail and pick the one that suits your needs the most.
- Free vs. Paid
This is probably the first question you need to ask yourself — whether you want to pay for a bitcoin wallet or not. These wallets ensure a high degree of security. So, you should invest in a hardware wallet if you plan to store a significant amount of coins in your wallet.
Moreover, a hardware wallet allows you to store multiple coins, whereas a free wallet might not allow you to store different coins in one device.
However, this does not mean the free options are not good, as some of the free wallets are easy to use and offer high security.
You can use your wallet on your phone, computer, or both. Therefore, you must decide the way you want to access your wallet. For example, if you are more of a phone person, you should opt for wallets that are compatible with your mobile device.
- Multi-Currency or Single Currency
You need to decide if you only want to store one kind of crypto, such as bitcoin. If so, you can get a wallet that only allows you to store one currency. However, if you want to store multiple currencies in one place, you should go for a multi-currency wallet, such as Trezor or Ledger.
Another important factor you need to consider is the access retrieval mechanism. Back-up prevents you from losing access to your coins and helps you access your data if something goes wrong with your phone or computer.
Therefore, you must choose the wallet which offers a backup and allows you to set a 12 or 24-digit backup key, which you can use if something ever goes wrong.
- Private Key Control
Most customers want to use a wallet that gives them control of their private keys. Therefore, you must choose the wallet that allows you to do this. Moreover, you should not opt for exchange wallets, since they are not secure enough.
Wallet security is of utmost importance. Therefore, you should read everything about the wallet and its features before investing in one. Moreover, you must check if the wallet has two-factor authentication, as this prevents hack attacks.
These are a few factors to consider before picking the wallet. So, make sure you do your research before settling for a bitcoin wallet.
FAQs: Digital CryptoCurrency Wallet
Q. What is a bitcoin wallet?
A bitcoin wallet is computer software which allows you to send and receive your bitcoin or any other cryptocurrency. However, the type of cryptocurrency you can exchange depends on your wallet.
In addition, you can use the wallet to check your bitcoin balance and to use the built-in crypto exchange. This exchange feature allows you to trade bitcoin and other digital currencies.
Having a bitcoin wallet is almost the same as keeping your money in a bank account, as the bank ensures its safety. Moreover, a bank is less vulnerable to hacking compared to PayPal and other online platforms.
Q. Is there any difference in bitcoin wallets from different companies?
Yes, bitcoin wallets are different from each other, since they each pose different features. There are also many types of crypto wallets, such as HD wallets, brain wallets, desktop wallets, mobile wallets, hardware wallets, full node wallets, and more.
Each of these wallets has something new and different. But, remember you can divide these wallets into two categories — hot wallets and cold wallets.
Q. What is the difference between hot wallets and cold wallets?
Hot wallets are connected to the internet, and the connection can be through your phone, computer, or any other source.
Hot wallets are considered convenient to use because of their speed. However, these wallets are not as secure due to the presence of the internet at all times. This is because anything connected to the internet is under the danger of malware or attacks from hackers.
Therefore, a lot of people use hot wallets to store a small number of coins. This is because hackers are not usually interested in a little amount of crypto.
In contrast, cold wallets are not connected to the internet. They are also known as hardware crypto wallets, because they look more like USB drives.
Cold wallets are preferred by crypto enthusiasts and people who deal with big sums of cryptocurrency, because hackers are inclined towards stealing big amounts. Therefore, the users want higher security for their larger investments.
Cold wallets are almost impossible to hack because they are not connected to the internet. Of course, you would physically need this wallet to hack someone’s coins. But even then, the hacker will have to insert a number of passwords and PINs to get their hands on your account.
Q. How do these wallets work?
The main usage of a bitcoin wallet is to communicate with the blockchain. The wallet uses your private key and bitcoin address, which is similar to your email address, to allow you to make bitcoin transactions.
The whole process is secured by encrypted software, which makes it hard to hack. So, you can easily send and receive crypto without worrying about the security of your coins.
Q. Is it necessary to have a bitcoin wallet?
No, you do not necessarily need a bitcoin wallet. If you go to exchanges like Coinbase, then you will find built-in wallets there. However, these exchanges only offer hot wallets, which are not as safe as cold wallets.
You should get a bitcoin wallet if you are investing large sums in crypto.
Q. Are these wallets safe?
The answer to this question depends on the type of wallet you are using. If you are using a cold wallet from a renowned brand, you do not have to worry because the wallet is most likely to be encrypted with advanced software.
The safety also depends on whether you are using a cold wallet or a hot wallet. The safest wallets are those that do not get connected to the internet. This is because the absence of the internet makes it hard for hackers to track passwords.
Conclusion: What Is The Best & Safest Bitcoin Wallet?
Bitcoin wallets offer you that extra touch of security, putting your mind at rest that your funds are in safe hands. The main thing is to choose your crypto wallet with caution, ensuring the platform is reliable and credible.
Since all of the options listed here meet this criteria, the next things for you to consider are the additional features you would like your wallet to have. Make sure to read through the beginners guide to get a better sense of all of the aspects to look out for. This will ensure you land the best bitcoin wallet for all of your crypto needs.