Bitcoin wallets have been around since the inception of Bitcoin. But, many users continue to lose their private keys and have trouble with keeping their Bitcoin secure and easily accessible. There have been many new creations in the Bitcoin world from hardware wallets to online wallets. Many users still choose the traditional style of keeping their coins on their desktop computer, and that’s perfectly acceptable. However, large investors have been inclined to hold their Bitcoins in more expensive options, such as a Trezor. Here, we review each of the many options available to the end user for keeping their Bitcoins secure. We want to help users find the best bitcoin wallet for themselves, so that they can continue to help Bitcoin grow while keeping their own coins safe.
Online Bitcoin Wallet
The most popular widespread option is the best bitcoin wallet online. It provides the convenience of worldwide accessibility with the best security you can get. The upside to having your coins stored online is that the user can access them from anywhere in the world, from any phone, laptop, or desktop computer. In addition, the most recent innovations are fully-featured in providing users with multi-signature options. Users can adjust the fees they want to include in the wallets just like they can with fully featured desktop options. They’re fast, safe, and hip. What more could you ask for?
However, all of these pros come at a cost. The biggest risk to investing in Bitcoin with an online wallet is one of reliability. What if there is an Earthquake where the servers are located? This would cause Bitcoin nodes, servers, and online services to temporarily stop functioning. As a result, Bitcoin users may have trouble temporarily accessing their BTC. Furthermore, they also only run on only a few nodes, leading to a greater centralization of Bitcoin. After all, decentralization is the primary purpose of BTC in the first place.
Desktop Bitcoin Wallet
The bread and butter of Bitcoin. Traditional Bitcoin users since the early days have used desktop bitcoin wallets. Even though people are moving towards cloud services, desktop wallets still have their space among dedicated hardcore Bitcoin enthusiasts. It’s no secret that big-time developers choose desktop bitcoin wallets as they allow testing their applications in a local environment. It’s absolutely necessary for developers to test their programs locally rather than in production environments. Desktop wallets also can be accessible while offline, though it wouldn’t be possible to broadcast transactions across the network’s blockchain. Now, if you’re just a regular user who has no interest in developing software for BTC, this likely isn’t the top option for you. An online or hardware option will better suit most players in the market.
Hardware Bitcoin Wallet
A hardware Bitcoin wallet has become the leading choice for huge investors in BTC. The top industry leaders include the Ledger Nano and the Trezor. Basically, a hardware wallet is just a computer, but is built specifically for the purpose of generating keys for Bitcoin, as well as sending transactions across the network. Some do believe that Trezors and bitcoin-wallet.net may be hte best bitcoin wallet. With this, hackers cannot easily break into your wallet by means of keylogging your desktop computer. However, it is possible for the hardware wallet you received to have issues. Who knows if you received a bugged wallet or a safe one?
Since the hardware wasn’t designed by the user, there’s always the risk of the third party creating a malicious piece of hardware. It’s profitable for hackers to target companies who create financial tools for Bitcoin, and it won’t be surprising to hear about companies exploiting or being exploited by hackers who choose to manipulate the hardware of wallets. Certainly, there lies a massive risk in trusting the tools you were given.
Mobile Phone Bitcoin Wallet
Lastly and rightly so, mobile wallets have been somewhat of a useless innovation in Bitcoin. People simply don’t enjoy sending and receiving from their phone’s application when most payments are made from the computer. There is no inherent advantage from a mobile platform to a web-based online platform. It’s not surprising then, that few users actually choose to use mobile applications. Furthermore, apps on the Apple store easily get approved without any code audits. Stick with the online bitcoin wallet platforms.