So you decided to buy Bitcoin. That's great, but… where will you store them?
You know what is wallet, do not know? Yes it's right! the place where you store your hard-earned money.
Well, that's how bitcoins work… more or any less. But instead, you store your bitcoins in a bitcoin wallet. Bitcoin wallets are digital and are necessary for you to store, send and receive the cryptocurrency in question.
Keeping your Bitcoins safe is very,very important. That's why I'm here to help you protect them.
By the end of this guide, you will know what is the best bitcoin wallet for you e how to keep it safe. But first, let's talk about why security is so important in the world of digital money!
The Best Bitcoin Wallet: Why is Security So Important?
the world is full of good and bad people. Likewise, the Internet is also full of good and bad individuals. These bad people on the Internet are called hackers — and they constantly wait for opportunities to steal your information.
There are a lot of hackers out there who are after one thing — bitcoins! After all, bitcoins are worth a lot of money. Therefore, and your job protect your Bitcoin wallet.
just like the internet banking allows you to access your account using a username and password, to access your Bitcoin wallet, you receive a public key (Name of user) e a private key (password).
To hack your Bitcoin wallet, hackers need to gain access to your private key. You need to make sure the best Bitcoin wallet of your choice is safe.
In June 2011, hackers gained access to the Private Keys of the Mt. Gox's (an cryptocurrency bag) and stole 2.609 bitcoins. The second attack on Mt. Gox happened in 2014. This time, hackers stole about $350 million in Bitcoins.
Yes, you read that right — $350 million! The mistake was that Mt. Gox stored your Bitcoin in an online wallet — this made it easier for hackers to gain access. If they had stored their bitcoins in an offline wallet, such invasions would not have been possible.
These aren't the only cases of bitcoin theft — this happens often. This is because the people don't keep the password (key toilet)of your Bitcoin wallet secure enough. The only thing you can do is learn from these mistakes and prevent them from happening to you.
So what is the best Bitcoin wallet for you? What are the diferences? How do you securely store your bitcoins offline?
Let's get into it now…
Storing Bitcoins Online VS Offline
There two ways to traditional money store. You can choose to store it in your bank account or can pull it out e store it in a safe place.
The money in your bank account is connected to the internet and can be hacked / stolen.
However, the money in your wallet does not have an Internet connection. Therefore, it is impossible for anyone to hack.
Likewise, we can store Bitcoins online and offline. Offline wallets offer much more security in comparison with online wallets. This is because offline wallets are not connected to the internet and online hackers can't steal something that isn't there.
We can store Bitcoins online from two ways:
Web-Wallet: The Website wallets can be accessed from anywhere and on any device, as long as there is an internet connection.
Software Portfolios: Download software on your computer that allows you to manage your bitcoins. software portfolios are more secure than web wallets.
Offline wallets also come in. two ways:
hardware wallets : are like a flash drive (USB) where you can store your bitcoins and keep them offline. You should store the hardware (USB wallet) in a safe place where no one can find it.
Paper wallets: allow you to store your wallet information on a piece of paper, completely off the Internet. This way, hackers cannot gain access to your wallet information, therefore, they cannot access your bitcoins.
Let's help you decide which is the best Bitcoin wallet — let's take a look at the advantages and disadvantages of all of them.
Online storage (web wallets, software wallets)
Easy to use
Web wallets are like sites like the Facebook — you open your web browser, go to the site, and log in with your username and password. Easy!
software portfolios are like the Microsoft Word — you open the application on your desktop and sign in. However, you may need to enter your password.
Both options are easy to access and use.They are uncomplicated and are good for beginners!
Quick access to Bitcoins
As online wallets are easy to login and offer a user-friendly platform, you have instant access to upload and view your bitcoins.
Note: Many web wallets allow you to buy Bitcoins from them too (like Coinbase).
free to use
Web wallets and software wallets are free, which is one step towards becoming the best Bitcoin wallet.
The online wallets are always connected to the Internet, therefore, they are always subject to attack.
Web wallets offer low levels of security because all accounts are stored on a central server. This means hackers can log into your account and access your coins from any computer, if they have your password.
software portfolios offer higher security levels of the that web wallets because your information is downloaded to your personal computer.
Therefore, your Bitcoins are stored in one place — they are online, but not accessible on the Internet.
Offline storage (hardware wallets, paper wallets)
An offline wallet is not connected to the internet. Therefore, it is impossible for hackers to gain access to it.
The only way for someone to access your bitcoins is by taking your hardware wallet and being able to unlock it. They are incredibly secure.
Bitcoin hardware wallets come with extra security and protection. To view or send funds, you must enter a password / code on a physical device.
Therefore, Bitcoins can only be transferred to other accounts if the sender has access to the physical device.
No quick access
You can not start eating frozen food right away, you need to unfreeze them first. Likewise, offline wallets are frozen; it takes some time to unlock them!
Here's an example: if you keep your Bitcoin paper wallet in your pocket and forget to remove it before washing, the content will be destroyed.
Since there is no online copy of your wallet details, you will never be able to retrieve it. Which means one thing — all your bitcoins are gone forever.
Something similar can happen with a hardware wallet in case of fire, flood, etc., so it is important that you keep multiple copies of the wallet information secure in different locations. Don't just put them anywhere — just in places where only you know where they are.
hard to configure
Setting up your cold storage wallet (offline) can take some time.
Hardware wallets cost on average $70. Therefore, you might want to look at other options if you are only storing a small amount.
If that didn't answer your question “which is the best Bitcoin wallet”, then let's take a deeper look, shall we?
Using A Web Wallet — Not the Best Idea
Using a web wallet is like ask someone to manage your money for you.
You have limited control, but to your advantage you don't have to worry about managing it yourself.
These wallets are easy to use. You can log in to them just as you would your email account. You will be able to access them from anywhere and anytime.
All you need is a computer or cell phone with internet access.
You need to be careful when choosing a web wallet though, because some may not be your best Bitcoin wallet options.
If you use a site with limited security, your bitcoins will be in danger. It's simple!
Always choose a wallet that have a good reputation. The two web wallets I recommend are Blockchain.com e Coinbase.
Blockchain.com claims to have more than 23 million active portfolios. Supports coins like Ether e Bitcoin Cash and takes "less than three minutes" to configure.
It's so simple to set one up and send/receive bitcoins!
Go to Blockchain.com in your browser and click on the “Get a Free Wallet” in the upper right corner of the page.
After filling out the form, click on “Continue” and your wallet will be ready.
On the left side you have options that allow buy and exchange Bitcoin. On the right side you can see Bitcoin price history.
Imagine you want to send some money to your friend… do what you need? You would ask them for their bank account details, wouldn't you?
Well that's how it works when you want to send bitcoins. Instead of an account number, however, we use a public wallet address. You can see your wallet address by clicking the request button.
Note: It is important that you do not get confused between a public address and a private key. Your public address (or username) is usually 34 characters long, but your private key (or password) is 64 characters long.
In the image above, “15B1yuveuA9..." would be the address of your public wallet. This is the address you would give your friend if you wanted him to send you some Bitcoin.
To send bitcoins to your friend, you need click on the "Send" button on your dashboard and enter his public card address in the "That's it“. This is a process similar to how you would send money to another bank account.
Coinbase and other web-based wallet. It not only offers Bitcoin wallet services, but also offers Bitcoin Cash, Ether and Litecoin wallet services.
The process of sending and receiving coins is similar to Blockchain.com.
Online wallets charge a transaction fee. So if you want to do a lot of transactions, it will cost you a lot in transaction fees.
Online wallets do not provide full control of your private keys. Instead, they are accessed using the normal username and password method.
This means they have your wallet's private keys, so if they get hacked, your private keys will be too. And when a hacker has access to your private keys, he has access to your funds.
Anyway, let's move on to the safer version of online wallets — software portfolio.
Software Portfolios — the Best Alternative
Software wallets allow you more control over your wallet compared to web wallets.
You access your wallet using software that you download to your PC. Could it be your best Bitcoin wallet?
Software wallets cannot be accessed from different computers. They can only be accessed on the computer you downloaded them from.
If you are going to use a software portfolio, I recommend that you keep your computer updated with the protection software. There are viruses out there that can give hackers easy access to your funds!
It's important that you back up your software portfolio too! Otherwise, physical damage to your PC could cause you to lose your coins forever.
Here are two of the most popular software portfolios: Exodus e Electrum.
Exodus supports multiple cryptocurrencies and has a built-in exchange that helps you exchange different currencies with each other.
It has made great strides since it was released and is available on Windows,Mac,operating systems and Linux.
It gives you the control you need over your cryptoactives and does not require any technical knowledge for configuration.
Not to mention she has a good easy-to-use layout, making it perfect for beginners!
It is very simple to use and makes it easy to store, send and receive bitcoins! You can also set up recovery options, which means your wallet will be safe if your computer stops working.
Electrum Bitcoin Wallet
The Electrum Bitcoin Wallet it is also one of the most popular software portfolios and has been in operation since 2011.
It offers a good level of security and a variety of cool features.
É a decentralized software portfolio, which means that there is never any downtime (and also adds extra security).
Your private keys are also encrypted, making them harder for hackers to break in and steal your funds!
Overall, Electrum is a great choice if you're looking for a free and secure software portfolio!
Offline storage is the answer!
If you are looking to stay safe from online hackers, your best Bitcoin wallet is a Bitcoin hardware wallet or a Bitcoin paper wallet.
they avoid malware or virus who steal your private keys. They also protect you from nasty websites that try to steal your private keys (also known as “phishing” sites).
The only downside to using these types of offline storage is that they don't protect against physical theft.
Therefore, it is very important for you to keep your hardware or paper wallet in a safe place.
Ledger Nano S
The Ledger Nano S wallet is a device that looks like a normal USB drive. The only difference is — you need to protect it because your life depends on it!
It is not very difficult to configure. All you have to do is connect it to your computer, go through the security settings, transfer your coins to it and ready! Your coins are now safe and sound.
The USB has a screen on it — that screen is what helps you to authorize operations and login to your Ledger Nano S dashboard.
This is a great added feature that provides extra security for your probably best Bitcoin wallet!
Unfortunately, this level of security costs about $70.But it's certainly worth paying if you have a large currency portfolio!
Trezor Model One is the most secure hardware wallet choice for Only 53 EUR
Trezor is one of the oldest cryptocurrency hardware wallets on the market. First launched in 2014, the Trezor Model T is the company's premium offering, designed to serve HODLers and active traders.
Meanwhile, a built-in touchscreen gives the Model T a premium look and allows you to enter the PIN and password on the device itself, which is very convenient.
Bitcoin paper wallet
I recommend that you use the following wallet generator — WalletGenerator.net. This wallet generator will create a new wallet with a public key (name of user) and a private key (password), that you can print on a piece of paper.
The generated keys are long, so typing them in manually is difficult. That's why the wallet generator also prints a QR code (as a barcode), which facilitates its access.
É impossible for online hackers to steal your password (or private key) because it doesn't exist online.However, this does not prevent physical theft.
So what's the Best Bitcoin Wallet For You?
If you're just getting started with Bitcoin, I recommend starting with an online wallet like Blockchain.info ou Coinbase. You can also make your first Bitcoin purchase using these portfolios.
However, if you are buying over $100 in coins, I recommend transferring your coins straight to a software wallet.
If you are really concerned about the security of your bitcoins or have a large amount invested, I recommend switching to an offline storage wallet, I believe that would be the best bitcoin wallet for you.
Another thing I suggest is that you have multiple portfolios. That way you give yourself extra security.
I would only recommend this if you were storing but of $3.000 in cryptocurrencies. I know it can be hard to keep track of them all, but better safe than sorry!
Conclusions on Best Bitcoin Wallet
Your safety is your responsibility. With all wallets, you must be careful. If you carelessly expose your private key, you could risk losing all your funds! Just remember the following points to choose the best Bitcoin wallet:
Easy to use, especially for beginners
Low security levels
You can buy Bitcoin from them
Offer a good level of security if your computer is virus free
Easy to use and have access to
They can often offer different cryptocurrency wallets
Hardware Wallets / Paper Wallets:
Highest level of security
Store your bitcoins offline so hackers can't access them
You must be sure to keep the physical device or paper secure.
And that's all, folks! So now you should have a better understanding of which portfolio is best suited to your needs. Either Coinbase ou Ledger, I wish you the best of luck in growing your cryptocurrency portfolio!
The contents published on this website are not intended to provide any type of financial, investment, trading or any other form of advice. Forexdigital.net does not endorse or suggest that you buy, sell or hold any type of cryptocurrency. Before making financial investment decisions, consult your financial advisor.
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