What’s the safest bitcoin wallet?

What’s the safest bitcoin wallet?

What’s the safest bitcoin wallet?

With 10 years under its belt, bitcoin has evolved quite a lot. It is now easier than ever to buy bitcoin. There are tons of different payment methods and different ways to buy and sell. The question is: where is the safest place to store your bitcoin?

Bitcoin wallets have also evolved over the years, coming out with better and safer options. Nowadays, you can get a specific type of wallet that will fit your specific trade style. If you’re carrying a lot of different cryptocurrencies, there are wallets for that. If you’re carrying a significant amount of bitcoin, you’ll be needing a top-tier wallet. If you’re new to bitcoin, there are specific wallets for that as well. That just goes to show how much bitcoin and its storing capabilities have evolved in the 10 years of existence.

Types of bitcoin wallets

Looking for a wallet for your specific trading style? There are a few different types but they can be categorized into two main types: hot and cold wallets. Hot wallets are wallets that are connected to the internet while cold wallets remain mostly offline. There are different types of hot and cold wallets, each serving a specific purpose.

Hardware wallets

Hardware wallets, cold wallets, are physical devices that are built specifically for handling private keys and public addresses. It’s sort of like a flash drive with an OLED screen and side buttons to navigate through the interface of the wallet. They’re probably the most secure cryptocurrency wallet but they can get a bit pricey.

One of these devices can set you back $70-$150. This type of wallet is perfect for people who are carrying a significant amount of cryptocurrency and wish to keep it as secure as possible.

Paper wallets

Paper wallets, cold wallets, are literal pieces of paper that contain your private keys and public addresses. When generated, two QR codes are created: (1) a public code for the public key to receiving crypto and (2) a private code for the private key.

Although these are a very secure form of cryptocurrency wallet, these wallets are a bit more technical than the others. They’re intended for people with a more advanced knowledge of cryptocurrency. You also cannot spend a fractional amount from paper wallets. It’s either you swipe the whole amount or nothing at all. After you’ve transferred all the contents, the wallet can no longer be used. This makes it ideal for people who want to HODL all their coins.

Desktop wallets

These hot wallets are available for Mac, Windows, and Linux. They’re contained in software packs that have the files for installation. Since desktops are often connected to the internet, an antivirus or anti-malware software is highly recommended. This wallet is ideal for people who are always on their laptops as they can easily monitor the status of their funds.

Web wallets

Web wallets are hot wallets that are always connected to the internet and can be accessed via web browsers. These are usually the wallets that bitcoin exchanges provide you for free.  In most cases, your private keys are held by the company that created the wallet.

These wallets are ideal for people just starting out in cryptocurrency or people who are trying out a new exchange (entering small amounts at a time).

Mobile wallets

Mobile wallets are hot wallets that can be accessed via an application on your smartphone. It’s ideal for people who are always on-the-go and want to check on their funds, wherever they are.

Choose the right wallet for you

By looking at the types of wallets, you can analyze each and choose the right one for your trading style. No matter which type of wallet you choose, it’s very important to keep your bitcoin wallet safe. As said earlier, each type of wallet serves a specific purpose and it’s up to you to figure out which one suits you.