Bitcoin isn't just money; it is a decentralized virtual trust that many today are ready to invest in and trade. Crypto industry executives consistently indicate that the decentralized systems are resilient and capable of producing emergent properties without central authority. In this context, Bitcoin is a highly decentralized, resilient network of the digital money ecosystem. All that you can do with conventional currencies can be done with the Bitcoin network by just having a secure Bitcoin wallet.
As Bitcoin is no longer a speculative investment, more individuals and businesses are now ready to plunge into this, which has created a demand for Bitcoin wallet development companies. The demand is further backed by the approval of Bitcoin exchange-traded funds (ETFs) by the Securities & Exchange Commission (SEC), encouraging millions of Bitcoiners to trade happily. A secure Bitcoin wallet can be the best investment for a beginner who wishes to trade cryptocurrencies.
What is a Bitcoin Wallet?
A Bitcoin wallet is a secure cryptocurrency wallet that stores Bitcoin private keys or passwords with which a user can access and trade Bitcoins. When a transaction is initiated, it is verified in the network, and then a confirmation message is sent back to the wallet. Bitcoin wallets are the best wallets for day trading cryptocurrency. The best Bitcoin wallets for beginners are today available in different types.
What Are The Different Types Of Bitcoin Wallets Available Today?
There are several types of Bitcoin wallets available today. Users can transfer, buy, sell, or exchange Bitcoins by using the private keys available in the Bitcoin wallet app, which function like a password to access the network. Although the purpose is the same, the features of each Bitcoin wallet vary. They are;
Bitcoin Cold wallets: These types of Bitcoin wallets are hardware wallets where the keys are stored offline in an external hardware device which can be connected to the system through a USB. Bitcoin hardware wallets are easy to operate and are the safest way to store private keys.
Bitcoin Hot Wallet: These wallets are online, functioning as software wallets. They are the most convenient Bitcoin wallets, allowing users to access the cryptocurrency network anywhere from the device on which the software Bitcoin wallet is downloaded. The hot wallet also comes in different variations. It can be a mobile wallet, which includes Bitcoin wallets for Android and Bitcoin wallets for iOS. It could be desktop wallets and web wallets. Most of these wallets are open-source Bitcoin wallets.
How to Set up a Bitcoin Wallet?
Setting up a Bitcoin wallet or creating a Bitcoin wallet depends on the type of wallet that you have decided to use. Whether a hardware Bitcoin wallet or a software Bitcoin wallet, setting up is just easy and it takes a few minutes.
Follow the below-mentioned steps to create a software Bitcoin wallet or a hot wallet:
- Pick up the best bitcoin wallet from the list given below.
- If you choose a mobile wallet, it is easy to download the application right on your mobile device with an internet connection.
- If you choose a desktop wallet, it is easy to download the application right on your computer hard drive. These programs run from your desktop or laptop only.
- If you choose a web wallet, then your private keys will be stored in the server and you can access the wallet directly from a browser.
- Download the wallet only from the official app store or from the link given by the authorized service provider.
- Sign-in and create your account.
- Follow the best practices of password management.
- Implement add-on security measures like 2-factor authentication (2FA).
- Keep the seed phrase or recovery phrase safely.
- You are now ready to buy Bitcoin and store them in your wallet.
- Do not forget to backup your wallet.
Follow the below-mentioned steps to create a hardware Bitcoin wallet or a cold wallet:
- Select the best hardware Bitcoin wallet (physical devices).
- You can buy the wallet from the vendor directly.
- Connect the hardware wallet via an USB or a Bluetooth to a computer, to set up and access your hardware wallet.
- You are now ready to store your Bitcoin offline.
How to Use a Bitcoin Wallet?
A secure Bitcoin wallet can be a software wallet or a hardware wallet. Software wallet could be categorized into a mobile wallet, desktop wallet, or web wallet. Hardware wallets are physical devices that can store the private keys and operate via an USB cable. They can store large amounts of Bitcoins. So, to use a Bitcoin wallet, you need to first decide on the type of wallet. If your preference is for a software wallet, then you can download the wallet either on your mobile or on your system, or access directly from a browser. Once you access the wallet, you can register and set the password. The private keys will help you to access the network, and start transacting. You can make payments with the help of a Bitcoin wallet. You can even track your transaction. Interestingly, upon referring to your known sources, you can even earn a few coins.
Can Bitcoin Wallets Connect to a Bitcoin ATM?
Yes, Bitcoin wallets can be connected to a Bitcoin ATM easily to purchase Bitcoins instantly by either using cash or with a debit or credit card. Most of the Bitcoin ATMs are compatible with the Bitcoin wallets available today. Bitcoin ATMs are easy-to-use kiosks for buying, selling, and transfering Bitcoins. Unlike a traditional ATM that allows users to withdraw cash, the Bitcoin ATMs allows users to buy Bitcoins or sell them with the help of a Bitcoin wallet.
To operate a Bitcoin ATM, you need to have a Bitcoin wallet. You need to scan your wallet so that the QR code is read by the ATM. Once you are connected and recognized, you can insert cash or credit or debit cards. Confirm the amount and select BUY on the ATM screen. The wallet will process the transaction and a confirmation message will appear. Bitcoin transactions are carried out instantly.
How to Choose the Best Bitcoin Wallets?
Bitcoin wallets are the most active crypto wallets today. Choosing the best from the available top Bitcoin wallets is a bit overwhelming. Here, GoodFirms have shortlisted the top ten Bitcoin wallets for you after analyzing them in an extremely thorough and careful way. The following list of 10 top Bitcoin wallets includes; free Bitcoin wallets app, most popular Bitcoin app wallets, bitcoin wallets for mobile, open source bitcoin wallets,hardware Bitcoin wallets, software Bitcoin wallets, and much more.These are the best options available today.
#1 Speed
Speed is a top-most free Bitcoin wallet that works best for both on-chain and off-chain lightning network transactions.Every transaction of Bitcoin via Speed receives instant confirmation. Speed is the most reliable Bitcoin wallet available today due to the fact that it functions on a lightning network making the whole process safe, secure, instant, and with less energy consumption. Speed facilitates micropayments, easy transfer of digital assets, IoT and M2M payments, cross-border and remittance payments.
To set-up this Bitcoin wallet, all you have to do is download the Speed Bitcoin wallet either from Google Play store or Apple Store, sign-up, and start trading without any verification. If you wish to send Bitcoins, then, you can create a QR code, and if you wish to receive Bitcoins, then you can scan a QR code. Nevertheless, Speed Bitcoin wallet comes with multiple payment options. All transactions happen at a lightning speed without any transaction fee. Subway, Microsoft, Pizza Hut, CheapAir.com, Etsy are some of the top brands that accept Speed Bitcoin payments.
#2 Guarda
Launched in 2017, Guarda is the most popular Bitcoin wallet used by many today. As a multi-crypto wallet, Guarda allows users to buy Bitcoin, Etherium, and more coins and tokens in the best, and most secure way. This non-custodial software wallet can easily be downloaded on mobile as an Android or iOS wallet. It comes with an intuitive interface.
Buying, exchanging, and storing cryptocurrencies is easier with the Guarda wallet application. One can even get crypto loans using this wallet. The app is secured with Multisignature security features and fully encrypted backup. It also offers a prepaid Visa card.
Started as a single-currency software crypto wallet, today Guarda has progressed as a multi-currency, and cross-platform software wallet. Users can also get 24/7 online support.
#3 Bitamp
Bitamp is a free and open source Bitcoin Wallet that is secure and quick. Ideal for beginners, Bitamp is a simple, easy-to-use crypto wallet that allows users to buy and store Bitcoins without disclosing any information. This software wallet also allows users to have an offline storage of the private keys that is required to authorize any crypto transaction.
If you are a Bitcoiner, and wish to trade Bitcoins to expand your investment portfolio, then Bitamp can be the best option for Bitcoin software wallet.To send and receive Bitcoin from any device and from any location globally, users have to connect with a blockchain network and by using the Bitamp-created seed or passkey, can easily connect with the Bitamp client-side Bitcoin wallet. The wallet does not store your private key or transaction details.
Bitamp Bitcoin wallet is a non-custodial wallet, which allows the users to take complete control of all the Bitcoin transactions and dealings. As it is the client-side Bitcoin wallet that enables all processes to be done within users’ browser, it is the most safe and secure wallet.
#4 Sparrow Wallet:
Sparrow is a modern Bitcoin wallet that is secure and easily usable. It is a tab-based desktop Bitcoin wallet. Advanced users of Bitcoin mostly prefer using Sparrow wallet due to its features that support users' privacy. As a widely interoperable wallet, Sparrow also supports importing and exporting encrypted Electrum wallets. The wallet uses Argon2 configuration - a secured password hashing algorithm ideal for offline key derivation.
Sparrow Wallet supports Partially Signed Bitcoin Transactions (PSBTs), a standard that allows easy exchange of information between multiple users and multiple devices, easy sign-in of multiple users in the same transaction, and so on.
Sparrow wallet is easy to create, and users can even edit the wallet. It supports almost all hardware wallets available today. The wallet includes the entire transaction of the user in detail.
Sparrow offers total transparency and complete control throughout the process of creating and signing into the wallet. The transaction editor feature helps edit the transaction metadata. Other features include;
- The wallet is easy to use and offers both single-signature and multi-signature.
- Users can connect to the wallet via public servers, Bitcoin Core, or private Electrum servers.
- The wallet offers a comprehensive coin selection.
- Facility to label all transactions, inputs, and outputs
- Users can send and receive Bitcoins, both directly and collaboratively.
Sparrow Bitcoin wallet contains a fully featured transaction editor that can also function as a blockchain explorer. It allows easy editing and monitoring of all transactions before it goes live.
#5 BitBucks
BitBucks is another free and best Bitcoin wallet that allows users to pay, store, and buy Bitcoins quickly and securely with the Bitcoin lightning technology. Protected by multi-signature, BitBucks ensures that the users do not lose anything if they lose their mobile or the private key. BitBucks Bitcoin Wallet is a future-focused Bitcoin software wallet which can be easily downloaded onto the mobile device.
BiBucks charged Bitcoin app allows users to send Bitcoins to even those who do not have a BitBucks wallet. While paying crypto coins to someone, you can use any currency. Although payments are absolutely free, when you transfer there is a Blockchain transaction cost. This Bitcoin app is very intuitive, reliable, and safe to use.
As cashless payments are getting more accepted, customers and the retailers are happy with accepting Bitcoins through mobile wallets. So, to initiate a payment, users have to just scan the QR-Code, enter the amount and pay.
#6 Atomic Wallet
With over 500,000 monthly active users worldwide as of Feb 2024, Atomic Wallet is yet another popular Bitcoin wallet. Whether you wish to buy, stake or swap Bitcoins, the best way is to use Atomic wallet app. There is no need for any verification or KYC, users can register and start using the wallet. As a decentralized wallet, users have complete control over the funds they buy, transfer or pay. Atomic Wallet private keys are encrypted.
Although the wallet is free to use, there is a network processing fee charged for every transaction. This fee is calculated as per the load at the time of transaction. So, whenever the user initiates a transaction via Atomic wallet, it will be fed to the mempool. The transaction that offers the highest pay potential will get the chance to get confirmed first. Moreover, if the user initiates a swap transaction, Atomic wallet will charge an additional charge.
This Bitcoin wallet app undergoes frequent improvements to make it more functional, and optimal. Recently the app added 8 languages as the initiation for localization.
#7 Electrum
Electrum is one of the best Bitcoin Wallets that is free, fast, reliable, and easy to use. There is no lock-in, which means users can export their private keys and use them in any blockchain network. At any point of time, users can recover their funds from a secret phrase. The wallet supports multi-signature. Third-party plugins, and facility to store the private keys offline.
Another advantage of using Electrum is that users can verify if their transaction is included in the Bitcoin blockchain through a technique called, “Simple Payment Verification (SPV),” by just downloading the block headers and not the entire blockchain.
Seed or the phrase created by Electrum has 132 bits of entropy which clearly indicates the level of security offered by the wallet.
Electrum users can pre-set the wallet for two-factor authentication.
Other than the wallet file encryption, Electrum users’ private keys are encrypted with AES-256-CBC standard. Users can also leverage cold storage where the keys can be stored offline.
#8 Muun
Munn is a self-custodial Bitcoin wallet with lightning fast transactions. This simple, yet powerful mobile wallet is available on Android and iOS. The transaction fee is as low as 1 Satoshi. The wallet comes with a Mempool-based fees estimator that suggests an optimal fee for the Bitcoin transaction.
Muun Bitcoin wallet works with Lightning Network, and has Bech32 support making it more efficient with block space.It is a 2-of-2 multi-signature wallet, where users have to sign-in twice to activate a transaction. One key is stored in the mobile wallet, and the other key is stored in Muun’s server. Only the emergency kit carries both the keys and it is encrypted. This way, the wallet ensures safety and security of users’ coins and transactions.
As an open source model, Muun is an easy-to-use Bitcoin wallet app.
#9 ColdCard (Hardware Bitcoin Wallet)
ColdCard is the most trusted and secure hardware Bitcoin wallet with dual secure elements where the private keys are stored in a specialized chip for high-power security. ColdCard Bitcoin wallet is the first PSBT or Partially Signed Bitcoin Transactions native hardware wallet. PSBT is a data format that allows users to pass information between multiple users and combine the signatures.
ColdCard is a self-custodial cold Bitcoin wallet.The source code of ColdCard is viewable, and easily verifiable.
This Bitcoin wallet can be connected to a computer or a battery pack using a USB cable. The updated version of ColdCard hardware Bitcoin wallet Mk4 comes with a replacement of touch buttons with the real keys. Also, the newer version includes better power management, NFC-V compatibility (tap to pay), Boot ROM security improvements, “SHOOT THIS” facility, LED (green) for microSD card slot, 120 MHz CPU speed, memory of 840 kB + 8 MB RAM, and so on.
The wallet is compatible with other software wallets and tools. Encrypted backups, cloning using a microSD card, backup card, power adapter, setting menu, address explorer, facility to create temporary seed, support for multisig transactions, are the other features of ColdCard Bitcoin wallet. By adding a BIP-39 passphrase, users can have multiple wallets with ColdCard. Moreover, the newer version of ColdCard Bitcoin wallet promises firmware upgrade time to be just 15 seconds.
#10 Trezor Safe 3 (Hardware Bitcoin Wallet)
Trezor Safe 3 is a hardware Bitcoin wallet launched with a secure element protection to send, accept, trade and track Bitcoins easily. This Bitcoin wallet is an open source design which gives the liberty for anyone to enhance the product and offer additional features. As an offline Bitcoin wallet, Trezor Safe 3 comes with a facility where its users can get on-device confirmation of every transaction. With Trezor Safe 3 Bitcoin wallet, users can keep their crypto coins and data safe with them. Users can also store their wallet backup offline.
Other key features of Trezor Safe 3 includes;
- This Bitcoin wallet comes with next-generation security features including Certified Chip EAL6+ which acts as a shield against possible threats
- The wallet is Pin and passphrase-enabled
- Supports almost 9034 coins and tokens
- The device comes with two-button pad, 0.96'' Monochromatic OLED with 128 x 64 pixels
- Tor (the onion routing project) network ensures protection against privacy breaches
- Facility to install Bitcoin-only firmware and use it with Trezor
- The device is priced at $79
How To Secure Your Bitcoin Wallet?
Although buying Bitcoin with a Bitcoin wallet is an exciting investment, there is a need to ensure the safety of the wallet as well. Whether you are a seasoned Bitcoiner or a beginner in Crypto trading, following some of the best practices and guidelines to safeguard your Bitcoins is essential. A small error can cost you heavily. Also, outside threats are increasing, so securing your Bitcoin wallet is critical. So, to secure your crypto wallet, use the following tips;
- Choose the best Bitcoin wallet
- Spread Bitcoins across multiple wallets like software wallets (mobile, web, desktop wallets) and hardware wallets.
- Buy only with reputed services
- Take regular backups of your wallet
- Whenever you take a backup of your wallet, ensure it is encrypted. Otherwise, it is vulnerable to theft.
- Enable multi-signature for your wallet
- Follow Two-factor authentication
- You can use biometric authentication or facial recognition when using a mobile bitcoin wallet
- Keep a watch on the scams and phishing activities
- Do not disclose your Bitcoin wallet recovery phrase
- Do not disclose your private keys
- Do not disclose your encrypted wallet information to unauthorized users
By following the above-mentioned points, users can keep their cryptocurrency safe. Although Bitcoin wallets are vulnerable to security, the tips given here are the best-practices followed by many professional and seasoned Bitcoiners to securely store their Bitcoins.
Can A Bitcoin Wallet Be Hacked?
Yes, if proper precautions are not taken, a Bitcoin wallet can be hacked easily. Since the Bitcoin wallets store the private keys that are essential to access the network and buy and store Bitcoins, hackers and scammers target these wallets. Hackers use different methods to empty your wallet, and the wallets can even be attacked by ransomware.
51% attack on blockchain is one common attack many of us know. Such an incident happens when the hackers get hold of more than 50% of the mining hash rate and reverse, cancel, and re-route the existing transactions. This is just one example.
Hackers can find several ways to hack a Bitcoin wallet. Bug vulnerabilities, phishing attacks like Ice Phishing, crypto exchange hacks like the Mt. Gox, token swaps, smart contract hacks like the DAO hack, and Cross-chain bridge hacks are some of the common hacks.
Apart from these, there could be hacking from known insiders as well and via social engineering exploits.
Conclusion:
Bitcoin has completed nearly fifteen years of its existence. What started as $0.00099 per bitcoin as recorded by the New Liberty Standard Exchange back in 2009, has stood up high in 2024 at a value of nearly nearly $43,216.20 per Bitcoin in the international crypto exchanges. (Although Bitcoin touched an all-time high price of $67,566.83 back in 2021…). As the demand for the Bitcoin currency increases, the supply will also increase, and this will further increase the price of the coin. Bitcoin wallets undoubtedly will play a stronger role in sending, receiving, trading and tracking Crypto coins.
Bitcoin is worth the investment. So, pick up your best Bitcoin wallet from the list provided above. Be thoughtful, and make a wise choice.
“It is in your moments of decision that your destiny is shaped.”
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You can also check our latest list of the best ten Crypto Wallets for 2024.
