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.
List of the Best Bitcoin Wallets of 2021
#1. Ledger Nano X: Overall Best Hardware Wallet
#2. Trezor Model T: Top Bitcoin Wallet Company for Wallet Purchase
#3. Ledger Nano S: Best to Buy Bitcoin
#4. Exodus: Best for Managing Bitcoin & Other Cryptocurrencies
#5. Mycelium: Easily Store Bitcoin in Offline Device
#1. Ledger Nano X: Overall Best Hardware Wallet
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.
- Mobile Friendly
Ledger Nano X is a physical wallet that is considered to be the best hardware wallet for a reason. You can manage, exchange, and buy your crypto on the go, as mobile users can use their wallet on their phone. So, even if you do not have your laptop around you, you can still trade effectively from your Android and iOS devices.
The wallet connects to your phone via Bluetooth, which most phones have. Moreover, the wallet has a large screen, which ensures ease for users no matter where they are.
- All Crypto in One Place
The wallet of the Ledger Nano X has the highest capacity, meaning you can install more than 100 apps at the same time. These apps include Ethereum, XRP, Bitcoin, and more. In addition, you can store more than 1,800 different tokens.
The good thing about Ledger Nano X is that you can buy, exchange, and grow your crypto portfolio all in one place.
- Box Contents
The Ledger Nano X contains one hardware wallet, one USB-C to USB-A cable, three recovery sheets, one leaflet to guide you, and one keychain strap.
You can use the Ledger Nano X on a 64-bit desktop computer. This includes Windows 8+, macOS 10.10+, and Linux. However, you cannot use this wallet on ARM processors.
Fortunately, this wallet is compatible with smartphones. So, you can use it on Android and iOS 9+ as well.
- Easy Return
The company behind Ledger Nano X knows that purchasing this device is a big investment. Therefore, they have a return policy. In case there is something wrong with the product, you can contact the company within 14 days for a refund or exchange.
- Customer Support
Ledger Nano X is famous for its high customer care services. In addition, the website offers multi-language support, so you can select your desired language. This ensures there is no communication barrier, and you understand the content written on the website.
In addition, Ledger Nano X has 10 crypto experts, and you can take help from them if you feel confused regarding any matter. Lastly, the company accepts more than 15 payment methods. These methods are secure, so you do not have to worry about losing your money.
It is almost impossible for a thief to steal your coins. This is because they will have to place their hands for the censor to accept the open request and then guess your PIN. Therefore, this wallet is considered the best hardware wallet for bitcoins.
- 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 Bitcoin 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.
- Easy Setup
The Trezor Model T wallet is easy to set up, and it will barely take you 10-15 minutes to complete the entire process. So, you will not have to commit a lot of time before you can use the wallet.
Moreover, the wallet comes with detailed instructions, so you will not feel confused. Read the instructions thoroughly, and you are good to go.
The Trezor Model T is highly secured and open source, which means different bitcoin users cannot check the code on your device. So, if there are any bugs or mistakes, the crypto community will get them fixed. Then, you will not have to go through the hassle.
- Touch Screen
The wallet is a touch screen, which makes it easier to use. Moreover, it has a large screen to ensure ease while using the device. So, you can easily view the screen if you are using your phone instead of your laptop.
- Digital Independence
You can take ownership of your data and easily secure your digital assets. At Trezor Wallets, you can protect cryptocurrency, have a password to yourself, and own other keys to save your funds from hacks and thefts.
Trezor Model T is not just a token, but it is a secure wallet, an authenticator, and your digital ID.
- Keep Your Keys Safe
You can get your digital keys and access your coins and data using those keys, which Trezor Model T stores for you. Moreover, the brand allows you to use these keys anytime you want, as they are always connected to your device. As a result, your data is always safe from online hacks and attacks.
- Network Isolated Authentication
Trezor Model T always asks for confirmation before you agree to any terms. Moreover, it asks you to verify your identity every time you use the wallet, and it asks for your approval before making any modifications. So, you always know where your data is being sent.
- Strong Back-Up
The Trezor Model T follows industry standards for recovery seeds. This means you can recover your wallet and data using your 12-digit recovery seed if you ever lose your device. In addition, Trezor Model T is the only wallet that has a Shamir Backup, which ensures even higher security.
Therefore, you do not have to worry about hacks while using the Trezor Model T.
- Store Your Passwords
Using your keys, Trezor locks your passwords with the password manager. These passwords will be released to you only if you confirm the action on your Trezor. Therefore, your passwords will not be stolen by someone else.
- 5-Star Customer Support
The experts at the Trezor Model T are ready to help you at all times. The support team works day and night tirelessly to address your queries and eliminate all sorts of confusion.
This is why Trezor Model T has 5-star customer support. The brand enjoys positive customer reviews because the team is prompt in catering to customers. You can also read the reviews if you are skeptical regarding the quality of services.
- Transparent Security
Trezor Model T is verified by an excellent track record and is audited by security researchers. The brand hides nothing from you, and you can learn everything about Trezor Model T in the disclosure section.
Lastly, the company follows an open-source ethos.
- Supported Operating Systems
The device supports all major computer operating systems. Moreover, on mobile devices, Android is supported as well. Unfortunately, Trezor Model T is not supported by iOS yet.
- 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 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.
- USB-Style Hardware Drive
The Ledger Nano S has a hardware drive that looks more like a USB. The good thing about this drive is that it stores your private keys, which is done in a way that is impossible for anyone to find them.
Moreover, the Ledger Nano S is a cold storage wallet, which means it is extremely difficult for hackers to steal your coins.
In addition, you can set a PIN of your choice, and you can also set the 20-digit recovery password. You will have to use this password if your device is stolen or you lose it somewhere.
- Simple and Powerful to Use
Using the Ledger Nano S, you will have to download the ledger live, install the crypto app, and create your account. Then, you can make transactions of your choice anytime you want, and the Ledger Nano S will confirm every one you make.
This helps the wallet keep your crypto secure.
- Technical Specifications
The Ledger Nano S is pocket-friendly, as its dimensions are 56.95mm x 17.4mm x 9.1mm. Moreover, it weighs 16.2g, making it very easy to carry.
The Ledger Nano S is made of stainless steel and plastic. The presence of stainless steel ensures the device will not break easily, and it also makes the device look polished and newer than ever.
The good thing about the Ledger Nano S is that it does not require a battery. So, you do not have to worry about charging it.
The box content of the Ledger Nano S includes one hardware wallet and one USB cable. But, if you do not wish to use the USB cable, you can connect the device with your phone’s Bluetooth.
You can connect this device with a 64-bit desktop computer, so you can easily use it if your desktop has Windows 8+, macOS 10.10+, or Linux. Unfortunately, the device is not compatible with ARM processors.
Moreover, the Ledger Nano S is compatible with Android 7+ smartphones. Remember, you will need an OTG kit to connect your device with your computer or smartphone. The Ledger Nano S device is not compatible with iOS yet, so you cannot use it if you have an iPhone.
- Secure Multiple Cryptocurrencies Together
You can install up to three apps on your Ledger Nano S device, which supports XRP, Bitcoin Cash, EOS, Stellar, Ethereum, Bitcoins, and more. This means you can buy different coins and store them in one place.
Plus, you can install and uninstall apps on your Ledger Nano S device. There are no safety hazards, and the installation is the same as your phone. So, you can uninstall any app if you think you need more capacity on your device.
- Secure and Powerful
If you combine the Ledger Nano S with the live ledger app, you will benefit from a deadly combination. They will work together to ensure the utmost security and help you have maximum control over your cryptocurrency.
What makes Ledger Nano S stand out is the fact that it keeps your coins offline. This makes it harder for hackers to hack your account and steal your coins. Therefore, you do not have to worry about protection if you are using the Ledger Nano S.
- 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
#4. Exodus: Best for Managing Bitcoin & Other Cryptocurrencies
Exodus is the best pick if you are new to bitcoin or crypto in general. Exodus offers multiple features and is completely free and non-custodial. This ensures you can easily access your coins without wasting your time.
Exodus is suitable for you if you buy bitcoin or trade them daily.
- Cryptocurrency Exchange
This device has a built-in crypto exchange, which is already ingrained in the device. So, you do not have to do any installations. This exchange ensures you can trade your coin and make bitcoin transactions using the software.
Moreover, Exodus supports more than 100 different coins, which means the device obviously supports big names like Bitcoin, Ethereum, and more.
- 24/7 Live Chat
Exodus offers 24/7 live chat customer support. Therefore, using Exodus, you will not complain about the poor customer service, which makes it easy for beginners to use this product. Whenever you feel confused or have any queries, you can reach out to customer support, and they will offer you solutions in no time.
The downside of Exodus is that it is the hot wallet, which makes it vulnerable to hacks, because the wallet is online. But, this does not stop Exodus from being the best wallet for beginners.
- Manage Crypto on Mobile
Exodus is mobile-friendly, so you can manage your digital assets using your phone. In addition, Exodus is supported by iOS and Android, so you do not have to worry about its usage. Moreover, you can use Exodus on your computer desktop — just make sure your desktop is Windows 8+.
- High Security
Exodus ensures the high security of your funds. Therefore, it asks you to put a face or fingerprint as a lock to your device. This will ensure no one other than you can unlock your device. Moreover, you can also set a recovery password.
Make sure no one other than you has this password. If you lose your device, you can use this recovery password to get access to your data.
- No Sign-Up
You can buy and sell bitcoin and other cryptocurrencies at the comfort of your wallet, meaning you can exchange your bitcoin in mere seconds. Moreover, Exodus does not require a sign-up. This makes it easier to use, as you do not have to enter information before trading your crypto.
- Send and Receive
With this device, you can send and receive bitcoins safely. All you have to do is use a QR code or address, and Exodus will automatically check the address you have used and verify from you to eliminate all sorts of errors.
- New Software
Exodus has been in business since 2015, and the company has released new software every two weeks since then. This is to ensure you get to benefit from better technology every time. Moreover, new software ensures high speed for the users of Exodus.
- Easy to use
- 24/7 live chat support
- Compatible with the mobile and desktop wallet
- More than 100 cryptocurrencies supported
- Vulnerable to malware
#5. Mycelium: Easily Store Bitcoin in Offline Device
Mycelium is an online hot wallet, and by using it, you can store multiple digital currencies on your mobile. This ensures you can easily trade your bitcoin or any other coin in an everyday setting.
Mycelium is easy to use, and the instructions are easy to follow. So, you can get started hassle-free.
- Built-In Cryptocurrency Exchange
Mycelium comes with a built-in cryptocurrency exchange, which means you can easily buy and sell bitcoins that are new using the device. So, Mycelium has made trading easier.
- Hardware Wallet Integration Options
Mycelium also offers hardware wallet integration options, which allow you to connect with cold storage wallets from Trezor and Ledger. This means there are multiple ways you can set up the protection and security for your coins.
Moreover, Mycelium allows you to set custom transaction fees of your choice, which gives this product an advantage over other bitcoin wallets.
- Safe and Secure
In the U.S., only about 8% of bitcoin owners store their coins in safe places that ensure data privacy. The reason is that these wallets are custodial, so they are not secure or independent. But, remember that even if a wallet is non-custodial, it may still not be secure.
Mycelium does not require your ID, the disclosure of any other identifiers, or you to submit any other data. Moreover, the wallet comes with watch-only accounts as well.
To ensure greater security, there is a separate backup system for single address accounts and several levels of pin protection. Furthermore, you have the right to turn off all third-party services manually.
So, you should go for Mycelium, because the wallet is reproducible, making it completely secure.
- Make a Back-Up
If you want to make your funds secure, you can make a backup at Mycelium. All you have to do is follow the instructions in the app, which will make a backup for you. So, even if you lose your phone, you can get your data back through backup recovery.
The restoring process is not time-consuming either. For example, if you lose your phone, you can restore your accounts in just a minute. However, if you lose your backup, then you will lose your money.
The payment depends on the situation in your bitcoin network and how urgently you need to pay. You have the power to assign a minor flat fee, so be careful before setting the fee. If you offer too much in the fee, then you will lose a lot.
On the contrary, if you set the fee extremely low, then your payment will be delayed. The payment options are available on the app, and you have to choose the one you find suitable.
- Simplified Payment Verification
This technique allows you to download a complete blockchain. Moreover, the storage function at Mycelium is considered unique, as it allows you to secure your funds until you decide to spend or transfer your coins somewhere else.
- Hierarchical Deterministic Wallet
Mycelium has a mnemonic seed that derives from your bitcoin address, which is used to restore your data in case the wallet goes missing.
- Free to use
- Ability to set your transaction fees
- Suitable for beginners
- Only available on mobile
How We Made This List of the Best Bitcoin Wallets
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 Bitcoin & Hardware Wallets
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: Bitcoin Wallets
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.
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.