This guide will help you to find the best Bitcoin wallet for YOU!
What is a Bitcoin Wallet?
A Bitcoin wallet is the first step to using Bitcoin. Why?
A wallet is basically the Bitcoin equivalent of a bank account. It allows you to receive bitcoins, store them, and then send them to others.
You can think of a wallet as your personal interface to the Bitcoin network, similar to how your online bank account is an interface to the regular monetary system.
Bitcoin wallets contain private keys; secret codes that allow you to spend your bitcoins.
A Bitcoin wallet is simply an app, website, or device that manages Bitcoin private keys for you.
This guide will show you how to create a bitcoin wallet and pick the best one.
Types of Bitcoin Wallets: Hot Wallets and cold Wallets.
- Hot Wallets: Hot wallets are Bitcoin wallets that run on internet connected devices like a computer, mobile phone, or tablet. Private keys are secret codes. Because hot wallets generate your private keys on an internet connected device, these private keys can’t be considered 100% secure.
- Cold Wallets: These are wallets that are offline, meaning not connected to the Internet. Therefore they have a maximum security level storing our digital assets. In the real world the analogy is our savings funds – their liquidity is very low, but they are very secured. Cold wallet storing is recommended for large amounts of Bitcoin.
Why are hot wallets good?
- Easiest way to store small amounts of bitcoin.
- Convenient; spending and receiving payments is easy and fast.
- Some hot wallets allow access to funds across multiple devices.
Why are hot wallets bad? Not safe for the secure storage of large amounts of bitcoins.
Why are Cold Wallets good?
- Easiest way to securely store bitcoins.
- Easy to backup and secure.
- Less margin for error; setup is easy even for less technical users.
Why are Cold Wallets wallets bad? They’re not free!
A hardware wallet (Cold Wallets) is a physical electronic device, built for the sole purpose of securing bitcoins.
The core innovation is that the hardware wallet must be connected to your computer, phone, or tablet before bitcoins may be spent.
The three most popular and best Bitcoin hardware wallets are:
Hardware wallets are a good choice if you’re serious about security and convenient, reliable Bitcoin storage.
Your all-important private keys are maintained in a secure offline environment on the hardware wallet, fully protected even should the device be plugged into a malware-infected computer.
As bitcoins are digital, cyber-criminals could, potentially, target your computer’s “software wallet” and steal them by accessing your private key.
Generating and storing private keys offline using a hardware wallet ensures that hackers have no way to reach your bitcoins.
Hackers would have to steal the hardware wallet itself, but even then, it can be protected with a PIN code.
Don’t worry about your hardware wallet getting stolen, lost or damaged either; so long as you create a secret backup code, you can always retrieve your bitcoins.
How do I secure my Wallet?
- Secure your computer
- Restrict unsupervised access. Set a strong password and close all ports and maintain a strict firewall.
- Frequently change address. Use a different address for every transaction.
- Multiple Signatures (Multi-sig). Multiple private keys to deter breaches.