How to choose a Bitcoin Wallet
How to choose a Bitcoin wallet is one of the decisions that a crypto investor or trader has to make. The content of this guide will give you a better understanding of bitcoin wallets that are available to you. And if you’re planning to store bitcoins; whether little or large amount, this guide will help you decide which bitcoin wallet to go with.
How To Choose Your Bitcoin Wallet (Full Guide)
There are different types of bitcoin wallets, but everyone wants a bitcoin wallet that they can trust. Regardless of if your wallet options are software or hardware, you must make sure the wallet reaches certain standards, How to choose a Bitcoin wallet? Before you chose a wallet, check for the following:
- Have control over private keys: Where users own and have control their keys.
- Backup & security features: Seed backup keys and pin codes.
- Developer community: Where the development community is functional (to encourage maintenance).
- Hot/Cold Wallet: If a wallet is either hot or cold.
- Ease of use: Fast and efficient UI for easy use.
- Compatibility: Works with a wide range of operating systems.
- HD Wallet: Generates new wallet addresses by itself.
- KYC: Where KYC is not a requirement.
You should make your decision based off what the wallet offers, how much bitcoins you intend to store in it, and your overall purpose. So how to choose a Bitcoin wallet? Want to start trading today? Join STS Crypto with a fresh new account for free.
It is as complex as any other decision that concerns money.
A major part of your decision depends on your intended purpose. You may intend to:
- Save your Crypto for future use.
- Save crypto for short-term use.
- Day-to-day transactions
- Day-to-day trading of crypto (Buy/Sell)
Let’s help you pick the right bitcoin wallet
If you make your judgement based on the criteria and your intended purpose, which we mentioned earlier, selecting the right bitcoin wallet would become incredibly easy. Want to know how? Read further.
Hardware wallets meets all the set criteria. However, these wallets are offline bitcoin wallets more or less, because they cannot be used over the internet to make direct purchases or any of such. Then again, this type of wallet would be useful to you if you want to store up your bitcoin as long-term savings.
Furthermore, they’re several HD wallets out there that uses a public address once. Also, a hardware wallet can be used by establishing a connection between it a device that is infected.
There are tons of hardware wallets, but we can recommend few of them. They include: The Ledger Nano S and Trezor
Several other software wallets are out there that meet all our criteria, therefore, you can use them too, if they meet your intended purpose.
Assuming your goal is to store cryptos for duration of between 2 – 3 months, which is quite short, desktop wallets are your best option. Desktop wallets, as compared hardware wallets are relatively hot. These type of bitcoin wallets readily connects to the internet once it is given access.
Besides being able to connect to the internet, the wallet also comes with security features of back speed, as well as PIN code and HD wallets to meet your short-term needs. The only downside to this type of wallet is that it will quickly get infected by a malware or virus if your device contains any. There are several wallets in this category, but a few standouts include:
- Android Wallets incude: Coinomi , Jaxx ,Edge, SamouraiWallet ,MyCelium
- iOS wallets include: Breadwallet, Jaxx, Copay, Blockchain, Edge, Bitpie
- Web wallets include: Binance, Coinbase, Xapo.
Note: People make use of hardware wallets in cases where they want to hold their cryptocurrencies for a short period of time, maybe 2 – 3 months. This is the right option is you want some safety. I also practice this. Considering the currency in question, if it is supported by the hardware wallet, it is always a viable option.
They are several other software wallets, they include: Mobile wallets and web wallets. A good number of the mobile wallets are up to our set standard, however, just a handful of web wallets satisfies a few of our set criteria.
Coinbase is an example of web wallets. While using Coinbase, you need to do your KYC without having control over your private keys. Wallets like Bittrex and Binance are inbuilt wallets of centralized exchanges that operate in a similar fashion.
These kinds of web wallets are very effective if you want to trade daily crypto with secure measures like the 2-FA authentication. However, there are lots of risks involved if you store your cryptos here. Therefore, we do not advise it.
Conversely, a couple of mobile wallets are available that meets our required criteria which you can use to do daily crypto trading. They include: Mycelium, Coinomi, Electrum (Android), Airbitz.
The above mentioned mobile wallets are very convenient to use, and can be used by anyone to trade crypto on a daily basis.
Note: In as much as these wallets meets our set criteria, we do not advise that you store up a chunk of your bitcoins in them. Owed to the fact that they readily connect to the internet and are hot wallets, it is still risky to store your bitcoins there.
Conclusion: The safest and most efficient ways to store your Bitcoin
There are several types of wallets out there, however, lots of them have fraudulent intent. And if you go ahead and try to save up with these wallets, you’ll probably lose all your bitcoins.
Also, be sure to look up any new wallets and not just dive into using them. Inquire about them with on Bitcoin Reddit or check the Bitcoin Forum for further information before using it.
In addition to this, find out if the wallet features a multi-sig functionality. This is an extra form of security to your wallet. But very few wallets support this feature.