Bitcoin wallets are available for a variety of different platforms and come with different features. This article will help you find the best Bitcoin wallet for you. Bitcoin has given the people the ability to transact within the global economy 24/7. For investors, it's a goldmine opportunity to benefit from this booming programmable money. Bitcoin trading software has become highly demanded among investors for trading in cryptocurrency since it optimizes their time, effort and resources.
There is also an ever-increasing number of cryptocurrency-related platforms emerging to meet the traders and investors need. To cash the cryptocurrency boom, scores of businesses have built their cryptocurrency exchange software. Many are in the active process of cryptocurrency exchange development or looking to buy ready to use Bitcoin exchange script. Whether you want to participate as an active bitcoin trader or keep it on your radar as an investment opportunity. A bitcoin wallet will help you keep your digital currency safe.
Introduction to Bitcoin Wallets
As of December 2017, Bitcoin was worth 13,860 U.S. dollars and reached a market capitalization of 237.62 billion U.S. dollars in Q4 2017. A Bitcoin wallet is the first step to using Bitcoin cryptocurrency. Without a Bitcoin wallet, you won’t be able to send or receive Bitcoin payments. You’ll need to buy or download a bitcoin wallet if you are about to receive Bitcoin.
You can think of “wallet” as a different kind of bank account where you keep your cryptocurrency, instead of money. Just like a bank which allows you to receive money in your account, a wallet allows you to receive bitcoins and other coins, store them securely, and then send them to others when you want to.
A wallet can also be seen as your personal interface to the Bitcoin network, just like how your online bank account is your personal interface to the regular monetary system. A bank account typically stores money whereas wallets store private keys, secret codes that allow you to spend your coins. So, in reality, no coins need to be stored and secured, instead, the private keys that give you access to them need to be secured. A Bitcoin wallet is simply an app or a website, or a device that helps you to store and manage your private keys.
4 Popular types of wallet
There are multiple ways in which you can save and use your bitcoins. Here are four types of wallets that are widely used. Understanding the type of wallets, convenience and security they offer will help you pick the right one.
Users can access Hot Wallets from any internet connected device like a computer, mobile phone, or tablet. You will need Private keys and secret codes to access Hot wallets. But it is not 100% secure because the private keys are generated on an internet connected device.
At best, you should think of Hot bitcoin wallets only for the purpose of frequent payment. You should never use them as a choice for the secure storage of bitcoins. Hot wallets are the Easiest way to store small amounts of bitcoin and crypto and it provides a convenient way to send and receive payments. It allows access to funds across multiple devices.
Bitcoin hardware wallets
A hardware bitcoin wallet is a physical electronic device. It is built for the sole purpose of securing your crypto coins. To use Bitcoin hardware wallets, you should connect it to your computer, phone, or tablet before bitcoins may be spent. Hardware wallets make for a good choice if you’re serious about security, convenience, and reliability of Bitcoin storage.
Since hardware wallets don’t remain connected to the system all the time, it makes it possible to keep private keys separate from vulnerable which is not possible on internet-connected devices. Hardware wallets make it possible to keep your all-important private keys in a secure offline environment. Even if you happen to plug your hardware wallets to a malware-infected computer, it will remain fully protected. Since bitcoins are a digital currency, cyber-criminals could target your computer’s “software wallet” and steal them by accessing your private key.
Hardware wallets eliminate such possibilities. Storing all your private keys offline through a hardware wallet ensures that hackers have no way to steal your coins. In order to get their hands on your bitcoins, hackers would have to steal the hardware wallet itself from you. Even if they succeed to steal your hardware wallet, still they would need a PIN code without which they cannot use the hardware wallet to retrieve your coins.
Online Bitcoin Wallets
As the name suggests, Online Bitcoin Wallets, store your private keys online. The private keys are encrypted with a user-selected password, online. It provides the lowest level of security. You can access online bitcoin wallets from any internet connected device.
Desktop Bitcoin Wallet
To use Desktop Bitcoin wallets, you have to download and install it on your physical computer (laptop or desktop). This is the best option if security and privacy is your main concern since it does not rely on third parties for data.
5 handpicked bitcoin wallets that are based on the above parameters
1. Ledger Nano S
Ledger Nano S is a hardware wallet for Bitcoin from a French start-up. It looks like a USB drive and connects to any USB port. It does not come with an anti-tampering sticker because its cryptographic procedure checks for the integrity of the instrument when you plug it to the system.
Ledger Nano S comes with an OLED screen and has two side buttons to confirm transactions. In order to secure your wallet, you will need to set up your pin code, when you configure your Nano S as a new device. You should note down your 24-word recovery phrase. You will need this recovery phrase to restore your bitcoins. Ledger Nano S keeps your private keys stored, offline.
Presented by SatoshiLabs, Trezor is the world’s first Bitcoin hardware wallet. This hardware wallet is a small device with an OLED screen. You can connect it via a USB to your personal computer or phone. Its stores your private keys offline and sign transactions. The setup for Trezor is entirely different from Ledger Nano S. When you connect your PC with Trezor for the first time you are shown a nine-digit pin code on its OLED screen. You have to enter the same pin code by clicking on your corresponding PC screen. Every time you connect Trezor to your PC, you get a new auto-generated random code. This means your Bitcoins are safe even when your PC has tampered. Once you enter the PIN you get a 24-word recovery seed. You need to note it down somewhere safe because this is the only way you will be able to restore your bitcoins.
3. Atomic Wallet
It’s a desktop bitcoin wallet that provides multi-currency custody free wallet and supports well over 300 coins and tokens. This cryptocurrency wallet has decentralized cross-chain atomic swaps on board. The wallet allows users to exchange their Bitcoin, Litecoin, and QTUM with no intermediaries. In the near future, Atomic Wallet plans to enable Ethereum also for the swaps.
The Wallet provides a built-in regular exchange service for a range of cryptocurrencies with the option to buy XRP, BTC, LTC, and ETH with a bank card. You don’t need to verify your identity or register to start using the Atomic Wallet. Atomic generates a mnemonic seed for your wallet from a security perspective and encodes private keys in your device. If you plan to use Atomic Wallet, make sure you write down the seed and keep it in a secure place, because the seed will be shown to you only once and will not be sent to you via email.
It's another desktop-only wallet that is free to use. JP Richardson and Daniel Castagnoli crafted Exodus in mid-2015. It is the world’s first multi-cryptocurrency desktop wallet. The company has put a lot of effort into creating a good user experience. Since Exodus is desktop based, it maintains no hosted servers or logs. It supports cryptocurrencies like Bitcoin, Ethereum, Dash, Golem, Litecoin, Dogecoin, and Augur.
Just like Atomic Wallet, you don’t have to register or go through identity verification when you use it for the first time. However, you should note down the seed key as soon as it is made available. You will also need to set a password if you want to send or receive the funds. When you setup Exodus, it will ask for your email id. Exodus uses it for one-click link recovery feature.
Jaxx is a digital wallet to store bitcoins and altcoins. At present, it supports 13 crypto coins and is a preferred choice for multi-cryptocurrency users. Jaxx provides a seamless and user-friendly UI. There is no requirement for email verifications, onboarding, or the requirement for usernames and passwords to start using Jaxx.
It's a hardware wallet that comes with a seed backup key feature. With the help of seed key you can control and restore your crypto assets in case your device is damaged or lost. Jaxx digital wallet allows you to export your private keys, and import bitcoins or altcoins from paper wallets. This makes it a natural choice for multi-currency lovers.
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