Before investing in Bitcoin or any cryptocurrency you always think about the best Bitcoin wallet or best cryptocurrency wallet.
Because cryptocurrency is a digital currency and big concern about digital currency is to hide from hack and online thread.
Bitcoin is the most valuable and mother of cryptocurrency so it will be always big concern with the safety and security of Bitcoin.
As Bitcoin is decentralized, so there is no any central authority responsible for safety and security of your digital assets.
But to overcome this problem here is few market legend which helps us to make secure our Cryptocurrency but to hand over your assets on other hand is always questionable.
So this guide is for all Cryptocurrency investors who are new to investment or planning to invest.
If you invest in any cryptocurrency such as Bitcoin, Ethereum, Ripple, Litecoin etc.below suggested wallet will help you to make the most secure.
Before going in detail, let me first introduce you what is Bitcoin or Cryptocurrency wallet and how does this works and how this Bitcoin wallet works?
After that, I will guide on your top 10 best Bitcoin wallet.
What is Bitcoin wallet
Every currency needs to be stored somewhere for easy access and safe to make them stolen. In a similar way, Bitcoin is concerned about same.
So, the way you have the bank account to hold your money here in Cryptocurrency we have a digital wallet which is well fit for only Cryptocurrency to hold.
If, I will give you an example of a few companies which provide such wallet services are CoinBase, Exodus, Trazor Nano s etc.
Various companies provide different types of Cryptocurrency wallet to hold your cryptocurrency and they make sure for safety and security of currency.
But as I said, this is not the centralized agency who is responsible for any hacking issue in future but these are well established and highly reliable companies who guarantee you for safety and security of your cryptocurrency.
So, simply you have your PayPal wallet, which you can access from anywhere in the world in a similar way Cryptocurrency wallet can be accessed from anywhere in the world.
But do you know, what type of Bitcoin wallet we have?
Let me explain you first type of Bitcoin wallet.
Types of Bitcoin Wallet
There are various types of Bitcoin wallet and each wallet is well known for its security.
Based on your convenience and security feature you could have one, and there is various service provider company for each type of wallet.
So which one is best will discuss in later.
Online or Web Wallet
If you think about PayPal than it is part of the online wallet which could be accessed from anywhere using the web browser.
In a similar way Online or web wallet in cryptocurrency could be accessible from any corner of the world, basically, this type of wallet is always active and on.
These are a less reliable and less secure wallet. Various companies like Coinbase, Bittrex offer such type of wallet.
In case, the system of wallet provider company got hacked then you will lose all your Cryptocurrency.
Here safety and security of your coins are always depended on wallet provider company.
But this is quite useful in the case where you are a day trader. because such wallet offers immediate availability of your Bitcoin or any cryptocurrency.
This type of wallet is always installed on your desktop.
Few companies such as Exodus offer desktop application of wallet, simply download that to your local desktop.
Wallet will be solemnly accessible by you only and in each and every case you require your physical laptop to access your wallet.
Here good thing is, you are responsible for the safety and security of the wallet. In case someone has hacked your laptop he can steal all your currency.
Till the time we have heard about online and desktop wallet, but we all know people need their assets all over the world and in their mobile phones.
Because access to their wallet is quite easier and will be very simple.
So most of the companies which are providing online or web wallet also having their mobile app.
Simply go to their home page and look for mobile wallet, download Mobile App.
Do registration and verify your identity. This will help, you to send money to any wallet.
Same as PayPal mobile wallet, it has also feature to scan the QR code and send your money.
Safety and security depend on the mobile wallet provider and your own device security feature.
Till the time, we have discussed wallet which is on network security risk, a single loophole can make your hand empty.
Because your digital assets are online and holding space somewhere in digital up and running web space.
We know paper currency like dollar and pound is easy to withdraw and can have hard cash but not cryptocurrency like Bitcoin.
But paper wallet can help you to fulfill your dream.
A paper will be generated which has the public and private address on it, you can store all your cryptocurrency to the specified public address of paper wallet.
So it will move away from your assets from a digital online platform and will keep somewhere in the back of the web space which is not accessible by online hackers.
The advantage is you can hold that paper currency to bank locker or back of your backyard, just joking.
No threat of any digital hack and your assets will be fully secure.
Read – How to create paper Wallet
But the disadvantage of having paper wallet is, not easy to immediate unavailability and your transaction will take the longer time to clear.
To overcome this the best wallet is Hardware wallet.
This type of wallet is most recommended and easy to access, it will be like pan drive which only store cryptocurrency.
It will push your currency away from digital online web same as the paper wallet and whenever you require simply plug in your drive and it will be easy to access.
But make sure your drive is safe and secure and in any case, you lost it, you can access your Bitcoin or any cryptocurrency using Desktop App.
These are the types of Bitcoin wallet, now will tell you how does Bitcoin wallet work.
How Does Bitcoin Wallet work
First, you have to open an account with any of the above-provided wallets, simply do verification of your identity and set security password.
Every wallet has primary addresses which you call your Bitcoin address.
For each currency in wallet has different addresses such as for Ethereum, Ripple, Neo every currency is associated with different addresses.
How do this works will learn step by step?
- While anyone sends you Bitcoin, he will send it to your assigned wallet address.
- Bitcoin sent by the sender will be stuck in Blockchain for verification.
- Every transaction will be verified by Miners.
- After confirmation, your Bitcoin will come to your wallet.
How many verifications it will go for each transaction is varied from wallet to wallet, and type of currency always matters to estimate time of arrival.
Because Bitcoin takes longer than any other cryptocurrency because of it’s 10 minute block time and other such as Litecoin takes only 2.5 minutes for single level verification.
I hope you understood how Bitcoin wallet works.
Now, it seems like you have learned about types of wallet and how Bitcoin wallet works.
Let me share top 7 Bitcoin wallet which is highly recommended because of their security and well-known features.
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Top 7 Best Cryptocurrency wallet
Her is the list of top 7 Best Bitcoin wallet because of high security and most reliable feature
1- Ledger Nano
It is a hardware wallet, which provides high security. It is like pen drive which is easy to plug in and well known for it’s a security feature and putting Bitcoin away from the online platform.
It accepts all other currencies and can be accessed from your laptop, but make sure your pen drive is safe and secure.
It is another small hardware device bit different than ledger, it helps you to create private key offline.
It is an offline wallet so provide high security.
While setting up the wallet, it generates 24-word seed keyword which will be used to access the wallet but in addition to that, it provides facility to create the key phrase.
So, if anyone has stolen your seed keyword cannot access your wallet unless he has the key phrase.
Coinbase is an online web wallet and most recommended wallet and worldwide easily accessible.
It is well known for its security and accepting various currencies, it has all the most traded currency such as Bitcoin, Ethereum, Litecoin, Dash Coin etc.
It has few limitations with currency availability to a various country, so check out this list.
If you are already an existing user of CoinBase and willing to search for same CoinBase alternatives then here is Guide for you which has top 7 Best alternatives to coinBase.
Bittrex is among well-listed trading exchange, so it will give you better experience to quick availability of coin.
Bittrex is among the most famous trading platform and also having a wallet to make safe and secure your currency,
But, it is advisable to store only a few currencies in your Bittrex wallet and make rest out from that.
Exodus is a desktop wallet and completely owned by you only.
It provides you additional security of private key to keep it safe
Every time you log in will ask you to provide private key.
It has the ability to show you past transaction history and will be easy to access.
It is purely wallet, no trading exchange is associated with Exodus.
Most of the people around the world use Exodus wallet.
We have learned about Coinbase it is a wallet with trading exchange and one of the best platform to hold cryptocurrency.
The blockchain is a technology on which all cryptocurrencies are based and blockchain itself has one wallet which is separate from the trading platform and fully secure.
Most of the people recommend to use this wallet but it is not having any trading platform like Coinbase, so will take time to move your currency to trade.
But, it has an advantage over coinbase of additional security as it is far away from the trading platform.
Electrum is another best Desktop wallet same as Exodus. It is compatible with other physical wallet and has very high speed.
It offers cold storage and if you have any other computer then it will provide you facility to put that offline and store your currency.
In case, loss of computer, you can recover your currency using App.
Conclusion and Bonus tips
Every Bitcoin wallet is on some risk either online hack or stolen issue, so it will be up to you which one you chose and how early you create backup for that.
Every wallet offers additional security of 2FA, so it is always advisable to use such security feature with the wallet.
So, no one can access your wallet unless he has your primary password and run time 5 digit password generated by 2FA application.
Never put your all cryptocurrency in a single wallet, always diversify your assets to the different wallet.
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If you want to learn more about Bitcoin visit article – What is Bitcoin.
This is the end of my Best bitcoin wallet and type of wallet.
What do you think which one is your best cryptocurrency wallet?
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