A Bitcoin wallet is often also known as a digital wallet. Similar to bitcoins, which are virtual money transactions from one person to another, bitcoin wallets can be compared to a physical wallet. A bitcoin wallet is at the receiving end of bitcoins being send and obtained between one another and therefore has a significant role to play.
Types Of Bitcoin Wallets
There are four different types of Bitcoin wallets that one can use. They are:
1. Software Wallets
These are hot wallets that require the download of software clients to create and use a wallet. Software clients being available for both platforms- desktop and mobile.
2. Online Wallets
Online wallets are also called Web wallets and are the easiest of all the different kinds of hot wallets. Transactions become easier here for your wallet in accessible from any device with an internet connection.
3. Paper Wallets
Here, you can sort of print out your public and private keys on a piece of paper. It’s an offline method and is safest of all since you have your keys printed on a piece of paper.
4. Hardware wallets
They are independent hardware cold-storage devices that generate keys on the fly while making a transaction. Also, they are USB shaped devices that have to be plugged into your PC while making a transaction.
Best Bitcoin Wallets
Coinbase is one of the most trusted cryptocurrency platforms that stores the majority of the digital assets safely. The cryptocurrency stored is covered by insurance policy. It also supports a number of popular digital currencies. In short, it is the easiest place to buy, sell and manage your cryptocurrency. Some of its features include:
- You can invest steadily in your cryptocurrency over time and schedule buys daily, weekly or even monthly.
- It offers a secure vault to store your funds with time delayed withdrawals.
- The Coinbase app available for android as well as for iOS makes you stay on top of the markets.
2. Ledger Nano X
It’s the latest of all the hardware wallets. It is easy to use (easiest among most wallets) and is priced at $119. It’s much bigger than the previous Ledger Nano S, the buttons also being bigger and easier to use. It supports a wide range of coins and can be setup using an iOS device, android or even computer. Moreover, the Ledger app has really amazing security suggestions if followed. Lastly, The Ledger Nano X supports most languages.
Trezor was the first bitcoin hardware wallet launched in August 2014. It offers secure cold storage and the ability to spend with the help of a hot wallet. it is a tiny key-sized device which connects to your PC with a USB cable. It secures your bitcoin transactions offline and can even be used on a virus-infected computer. Some of its features are:
- Top-notch security protecting against both physical and virtual theft.
- Trezor buttons make sure no illicit transactions happen from your computer.
- It comes with a good privacy.
- Is compatible with a number of wallets.
Exodus is a multi-currency wallet, especially meant for beginners. It is easy to use and is available for both mobile and computer. It has a basic design and a good enough online support. The only drawback it has is its lack of custom network fees and the fact that it is not completely open source. Soem of its features are:
- Makes you go as beginner to pro in the field of cryptocurrency.
- It is a light wallet with a quick initial setup.
- Also compatible with Trezor hardware wallets.
Unocoin is a Bitcoin web wallet that was mainly created in order to cater to the needs of the Indian community. Private keys are encrypted and stored in cold storage. This makes it not just savvy but unpredictable. Unocoin also has its own trading facility and it allows users to store INR within the wallet itself. Unocoin allows users to further protect their funds using 2-FA. It’s perfect for the Indian audience since OTP mobile verification is done at almost every step.
Zebpay wallet is a mobile and web-based crypto exchange and wallet service provider that has been serving the market since ages now. It’s a platform which trades, exchanges and offers crypto storage facilities. It used to focus on the Indian market but is now globally acclaimed. It is a hot wallet and supports major cryptocurrencies. Its features are:
- No fees for the wallet service. The platform uses a zero-fee policy for all services including deposits, withdrawals and even trading.
- KYC is required to use its services.
- They take no withdrawal fees.
7. Blockchain (Mobile App)
The blockchain app grants full-proof consumer protection and security in almost all projects. When developing the latest generation of P2P payment platforms, blockchain could easily be considered the new industry standard for encryption and privacy.
Out of the many above-mentioned bitcoin wallets, the safest and the most secure wallet can only be determined vis.-a-vis. experience as well as the liabilities of such wallets can be found through usage only.