Well, we have already stepped into the era of cryptocurrency, where few of them have come to know about its mechanism and few are beginners in this field.People generally get confused when it comes to choosing the best cryptocurrency wallet to store cryptocurrency like bitcoin, ether,litecoin , Dogecoin, etc. if you are dealing with this same confusion then let me help you guys out to find best cryptocurrency wallet.
But, first of all for beginners who recently came to know about cryptocurrencies (Bitcoins, Ether, etc) you need to learn about cryptocurrency wallets. Why do we need them? , How do they work? I’ve explained it below.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a software programme which saves your private and public keys and interacts with several blockchains to enable users to send and receive bitcoin or any other cryptocurrency and can see their remaining balance.Let’s make it simple by saying that a cryptocurrency wallet stores your private keys which are necessary for doing any type of transaction through various cryptocurrencies. For bitcoin or other kinds of cryptocurrency transaction, you must have a digital wallet. This can be understood by an analogy of a real wallet which is used to store cash.
Now, there are different types of cryptocurrency wallets.
Desktop wallets can be downloaded on PC or Mac whatever you are using, however, it can only be accessed through only that pc in which you have downloaded it.
This is for one of the good security reason but it has few disadvantages too.one of the disadvantage is that if the virus affects your PC or if someone is wishing to get access to your private keys he might hack into your computer easily and get it.
Also, you cannot use it from different locations. So these are a few pros and cons for Desktop wallets.
Online wallets are used by most of the people. These are the cloud wallets which means you can access it from anywhere from any device and it is easy to use however due to these reasons it also has some security issues.
Online wallet stores your private keys online. so people can hack your password, they can clone your phones. Though it is not that often but still there is a significant number of such cases. Presently there are many famous online wallets to store cryptocurrency like coinbase, the blockchain, etc.
Mobile wallets run on anapp on phones and we can download it from play store or app store. mobile wallets are much simpler than desktop wallets and we can use them from anywhere. we recommend BreadWallet (ios) and MyCelium Wallet(android).
Mobile wallets are pretty much simple to use, you can set up a recovery phrase in case you forget your password or if your phone gets stolen.There are many mobile wallets available now like Zebpay(India), unocoin, etc.
4. Hardware wallets
Hardware wallets are quite different from other types of cryptocurrency wallets like mobile wallets or online wallets.Although hardware wallets make transactions online but they are stored offline which provide the best security. hardware wallets are highly recommended to those who invest a huge amount in cryptocurrency. But if you want to play around with small numbers, want a wallet for shopping, paying restaurant bills, etc you don’t need a hardware wallet. It is relatively more costly than few other types of wallets. well, various examples of hardware wallets are Trezor, Ledger Nano S, keep keys.
5. Paper wallet
it is one of the cryptocurrency wallets we don’t recommend to many because it is easy to lose. Apart from this disadvantage, it is very easy to use. it literally means writing your private keys on a piece of paper and you can store cryptos and tokens over there. You can transfer your funds directly from your software wallet to your paper wallet or vice versa. this process is also known as sweeping.
but if you lose a paper wallet and if you don’t have any backup you probably would end up losing your funds. This is why we don’t recommend it much. Still, it looks funny to imagine a piece of paper rolled in my pocket holding 10 million in it.
Very important to know before you use wallets:
1. Always have a backup of your cryptocurrency wallet. It looks like a normal advice but trust me its very important .doesnt matter which wallet you are using always back it up, use a seed phrase in case you forget the password.
2. Keep updating your software on regular basis, add extra security software which increases the security of your wallets while you are doing online stuff.
Important point – Best cryptocurrency wallet for the one might not be the best for the other.
choosing the best cryptocurrency wallet depends on a few factors, here are the factors you can see before choosing wallet:
- what do you want a wallet for? Is it for daily purchase like shopping, paying bills, etc or you want to do a long-term investing?
- do you plan to do transactions on just one cryptocurrency or multiple currencies?
- do you require access to your digital cryptocurrency wallet from anywhere or just from your workplace/home?
Now let me do a quick review on few of these wallets for you so you can decide which would be the perfect one for you. Remember guys do not judge these wallets on the basis of their sequence, sequencing is random. I would be doing a quick review of only a few very famous cryptocurrency wallets and I’ll do a detailed review in my later posts, so let’s start 🙂
Trezor is one of the most reliable hardware cryptocurrency wallets. It never exposes your keys and cannot be affected by malware.It is generally used to store a large number of bitcoins. For those who want to invest a large amount in cryptos, this should be on the top of your list of best cryptocurrency wallet(s).
It looks like a small digital calculator which randomly generates 9 digits pin and a 24-word recovery key which proves to be helpful in case device is lost or destroyed.It stores your private keys offline which ensures the best security.
- good security and privacy.
- cold storage.
- easy to use web interface.
- inbuilt screen.
- open source software.
- beginner friendly.
- cost $99.
- must have a device to send bitcoins.
Presently, coinbase is the world’s most reputed cryptocurrency wallet serving 30+ countries. Well, I have coinbase on my list of best cryptocurrency wallet(s) only because of its simplicity and smoothness, its worldwide acceptance and trust.
For newbies to get started with bitcoins or other cryptos this wallet proves to be very helpful. However, for those who have already used a few wallets, I won’t suggest them to use coinbase because of its high fees per transaction. Here are few pros and cons :
- Instant purchase of up to $1000 worth of BTC per week for verified credit card holders.
- Instant transfers between Coinbase users.
- Well-designed and beginner friendly user experience.
- Insured Bitcoin deposits.
- A debit card linked to your Coinbase balance.
- Online and mobile wallet services, with multi-signature security option to prevent unauthorised movement of funds.
- transaction fees. (around 3.99% via debit/credit card payment in most of the countries)
- closed and frozen accounts
To get $10 free on coinbase sign up with this link: sign up on coinbase
Electrum is the fastest growing lightweight and fast bitcoin wallet. It is a desktop wallet which is compatible with most of the older hardware.It possesses the great features and expert functionalities. You can easily install it on your PC or Mac.
- fast – It fetches the blockchain from the server so no delays
- private – You don’t have to rely on the server for your money, your private keys are never shared with a server.
- safe – you can keep your private keys offline and keys never leave your computer so no way you can lose it. your wallet can be retrieved by the secret phrase in case you lose it.
- not beginner friendly.
- unable to withdraw from particular websites when you use electrum desktop application.
The Mycelium Wallet is a mobile cryptocurrency wallet that allows you to store and trade your bitcoins.It is a semi-open coin wallet, its code is open to all but you cannot make changes and redistribute it. Mycelium is one of my favourite cryptocurrency wallets so this definitely has to come on the list of best cryptocurrency wallet(s). It is very easy to setup and its UI is very simple.
It requires no onboarding, no email verification and no username/password to get started. You always have the access to import private keys.
It provides you with a 12 words phrase which you should have written somewhere in case you lose your device.
Since it has a very simple, easy to use UI beginners also can use mycelium with no worries.
- well reputed
- offers various account types
- compatible with ledger and trezor wallets
- open source
- not beginners friendly
- no desktop interface
Well, that was from my side, hope this detailed article on hardware wallets, software wallets would help you to make the right choice for yourself. Hope you find your best cryptocurrency wallet and store your valuable bitcoins/altcoins securely.
Do let me know what are your views on these uplisted wallets and which bitcoin/altcoin wallet you are thinking to put to use.
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