For those in the cryptocurrency industry, you will know that it is essential to own a cryptocurrency wallet before you can store any digital currencies, including the bitcoin. Most wallets can be download and used for free, however there is always the transaction fee.
If you are new to owning and storing Bitcoin, an online wallet might be the best option for you. These allow you access your funds from anywhere in the world, at any time, from any device you choose. Several of the online wallets available are even linked to an exchange, therefore making the buying and selling process much easier. Some have applications available for smartphones so you can have access to your account when you are out and about.
Online wallets are relatively secure, with two-factor authentication and photo ID required to confirm identity when you sign up.
The online wallet functionality relies on a third-party support, which can put your funds at risk of hackers. However, there are many good options out there for you to think about, especially if you just need a wallet for small transactions.
This features a two-factor authentication and other privacy settings. Identification is not needed, unlike other alternatives. With Blockchain you are able to exchange bitcoin to other digital currencies with the built in ShapeShift option.
Recently Coinbase has had a negative hit to its reputation due to a Bitcoin Cash scandal, however it is still considered one of the fastest ways to access different markets, including some trading platforms like GDAX. Here you are able to process bitcoin transactions, be it buying or selling.
Desktop wallets are designed for you to use your laptop or desktop computer as your wallet, and some options are made specifically for mobile phones. Therefore, if a system goes down, you will still have access to your funds. The only way someone else can have access to it is if they hacked you directly.
If the person you are trading bitcoin with has the same wallet and exchange system, the transaction can process with no delays.
As a software based wallet, it does present a temptation for hackers which can be a downside, but there is always the option of cold storage.
Exodus is free to download and use, and is more than just a wallet; it also shows you live charts and trackers for the price of different cryptocurrencies. It has a ShapeShift functionality incorporated into it, so you will be able to trade your bitcoin for other digital currencies. It is compatible with Windows Linux and Mac and supports Bitcoin, Ethereum, Litecoin and several digital currencies.
Electrum´s reputation speaks for itself. It is a favourite choice among the cryptocurrency community because it is fast, private and secure while also being compatible with hardware wallets through third party applications.
This mobile wallet is an open source platform. Although it only supports bitcoin, it is constantly being upgraded and is accessible at any time. Although it may be a little confusing for new users, it is worth taking the time to learn about.
This wallet was developed especially for iOS, however it is now available for Android devices too. It is easy to install, taking only seconds, plus its interface is very friendly. The paper key support allows you to recover your information, even if you lose your phone.
This is the perfect option for those who want to store a larger amount of funds. Hardware wallets present the user with the ability to keep track of these funds at all times because they are stored on a physical device. This is known as ‘cold storage’, and it takes your bitcoin offline and away from potential hacking hazards. Even if the physical wallet gets stolen, your funds are almost impossible to access without the required passwords.
The physical form of the hardware wallet varies from something similar to a hard drive to a very meticulously crafted device. Either way, is a tangible wallet that the users needs to keep safe.
Although there are cheaper options available, a hardware wallet could cost up to $100. Make sure you check all of the features before deciding which is the right wallet for you.
This hardware wallet supports multiple currencies including Litecoin, Ethereum and various others. With a two-factor authentication and a pin code unlock system, the Ledger Nano has proved itself to be one of the most secure and private wallets currently available. The small form factor USB helps you to double check every transaction through the OLED display.
This was the first in the hardware wallet market and although it lacks some modern features, it one of the most secure of all hardware options. It is very easy to use and has a friendly interface. The Trezor is always a good choice for cold storage.
External Hard Drive
This option allows you to access different exchange platforms and software and also has better security features than many offline software wallets. Even if you were unsuccessful in the cryptocurrency market, it can be reused easily.
The durability of paper wallets is definitely an issue, but there are options of how to protect a Paper Wallet. Used fairly regularly, it is a non-electronic option to store your bitcoin. Seeing as it can be complicated to set up and there is not much support, it is better used by advanced bitcoin traders.
This paper wallet has the support of its founder, and he can help you step by step if you have any problems using the wallet. There is no charge to use the wallet and the official site bitcoinpaperwallet.com will guide you through the set-up process. You can even add holograms for an additional charge.