You are trying to choose a correct Bitcoin wallet, then keep some necessary points in your mind before choosing that, maybe you are new in this industry and you make a wrong selection in the scarcity of correct knowledge. This article will clear all your doubts in this reference.
When it comes to cryptocurrency, the name that first comes in your mind is Bitcoin. Bitcoin does not have any physical existence because it is a virtual currency, its exists in codes and numbers that can only be stored virtually. Now if you want to store Bitcoin and you are a beginner then this article is for you.
If you ask for this from a person who is a little more experienced in the field of cryptocurrency than you, then you are doing it in a wrong way. Now coming to the topic directly:
How many available ways to store Bitcoins?
you can find multiple ways to store Bitcoin. But majorly it is divided into two parts
- You can store Bitcoin offline (Hardware wallets)
- You can store Bitcoin online (Online wallets)
What features one should look while choosing a Bitcoin Wallet
As it is a new field for many, so you need to be very careful while selecting the bitcoin wallet for yourself. There are some features which must be taken into consideration while selecting the best Bitcoin wallet: Those features are as follows:
- The wallet that gives you the possession and control of your private key.
- The wallet must give you the best security and backup features.
- It must have an easy user interface.
- Because Bitcoin is a decentralized currency, its wallet should also be decentralized.
- It must not ask for your KYC (Know Your Customer)
- It must be adaptable in any operating system.
- Wallet must have the ability to generate multiple Bitcoin addresses.
- You must get technical or development support.
The above-mentioned features are not the complete features to choose the best Bitcoin wallet for you. To find the best Bitcoin wallet requires some more inputs, like
- For which purpose you are choosing any Bitcoin wallet?
- Are you looking for it for intraday trading?
- Are you looking it for long term hold?
- Are you looking it for short term hold?
- Only want to buy or sell crypto.
Select the best Bitcoin Wallet according to your need
Everyone has a different need as mentioned above, You can select the best one according to your need. Let’s make it easy for you to select the wallet of your choice:
Cold Storage (Hardware wallet)
This is the best wallet which almost fulfilled all the above-mentioned conditions. These types of wallets are best for those who want to save their crypto assets for a longer period of time. Some of the best available hardware wallets in the market:
The best part of a hardware wallet is they cannot use a similar public address repeatedly. You can store multiple currencies in a single hardware wallet. For your more understanding here are some good and bad points of a hardware wallet.
Pros of hardware wallets:
- The easiest way to store Bitcoins and altcoins in a secure manner.
- Its called most secure and easily backed up also.
- These wallets cannot directly be connected with the internet.
- Not much technically tough.
- you can use more than one hardware wallet at a single time.
Cons of hardware wallets:
- Hardware wallets are a bit expensive.
- It can be misplaced, lost or mishandled.
- These wallets are a bit tricky to use.
Hot Storage (Software wallet)
When it comes to a software wallet, this is the most used wallet. Software wallets are available in multiple uses and ways, you can start using it according to your need.
Hot storage or hot wallets are those wallets that run on internet-connected devices like a tablet, mobile phone or computer. In these types of wallets, private keys are all time connected to the internet so these private keys cannot be fully secured.
If we categorize the software wallet, it can be categorized in the following ways:
- Mobile Wallets
- Android wallets
- iOS wallets
- Desktop Wallets
- Web wallets
These are the main types of software wallets lets understand these in detail:
Mobile Bitcoin Wallet
If you are looking to store your crypto assets for a shorter period, then these mobile wallets are best for you. These wallets also contain all the required good features of a good crypto wallet.
A major drawback of these wallets is they can be hackable and attacked by malware anytime. Then also if used carefully, these are the best for you because it is easy to use. some of the good mobile wallets are:
Bitcoin Wallets for Android Devices
- Electrum Wallet
- Trust Wallet
- Green Address
- Bread Wallet
- Edge Wallet
- Jaxx Liberty
Bitcoin Wallets for iOS Devices
In the above mentioned mobile wallets, many wallets are available in both android and iOS. You can choose according to your need.
Desktop Bitcoin Wallet
Desktop wallets are those which are desktop friendly and can be easily used on the computer or laptop. Desktop wallets are programmed in a way that stores your private key in the hard drive of your desktop and manages it from there only.
There are multiple desktop wallets available, some of them are
Web Bitcoin wallets
Web-based wallets are those wallets that can be used in any web-based browser, moreover maximum of these wallets are also work as an exchange where you can trade with your crypto assets and earn money. In the web-based wallets, you can also buy or sell crypto assets with the fiat currency.
Pros of software wallets
- Good to use to store a small amount of Bitcoin and other crypto-assets.
- Fast and easy to use.
- It can be assessed anywhere in the world.
- Some wallets can be used from multiple devices.
Cons of software wallets:
- software wallets are not safe to use because of the fear of hacking and malware attacks.
- It’s tough to remember the password of many wallets at a time.
- High chances to lose private key.
- Hard to keep remember your backup phrase.
To conclude this article, If you are a beginner in the crypto field start with any software wallet and later on you can switch to a hardware wallet.
Before selecting any Bitcoin wallet you make a list of your needs and according to that you can choose the best Bitcoin wallet for you.
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