{"id":22,"date":"2021-02-27T22:31:57","date_gmt":"2021-02-27T22:31:57","guid":{"rendered":"https:\/\/postoken.org\/?p=22"},"modified":"2021-02-27T22:31:57","modified_gmt":"2021-02-27T22:31:57","slug":"best-bitcoin-wallet","status":"publish","type":"post","link":"https:\/\/postoken.org\/best-bitcoin-wallet\/","title":{"rendered":"Best Bitcoin Wallet"},"content":{"rendered":"

Best Bitcoin Wallet – which is the best bitcoin wallet<\/h2>\n

Introduction<\/p>\n

A Bitcoin wallet is a device or program that stores and manages a collection of private keys. It allows you to buy, sell and hold bitcoins. Bitcoin wallets<\/a><\/strong> can be custodial or non-custodial. Non-custodial wallets give owners access to their private keys, while custodial wallets do not grant users access to the private keys.<\/p>\n

Bitcoins wallets are available in various forms and with different features. This article offers guidance for choosing the best wallet for you.<\/p>\n

CONCEPT OF A BITCOIN WALLET<\/strong><\/p>\n

A Bitcoin wallet program operates using blockchain technology. These programs can function as apps on mobile and desktop devices and also as a hardware device.<\/p>\n

The operation of a bitcoin wallet is similar to that of an email. Like emails, sending or receiving bitcoin requires an address that is unique to the receiver. This address is the bitcoin address and can be shared with anyone that wants to send bitcoins. Bitcoin addresses always start with \u201c1\u201d or \u201c3\u201d. Just like emails, bitcoin wallets also have passwords that owners should safely keep. This password is your private key and is chosen by the wallet.<\/p>\n

The main function of the bitcoin wallet is to generate, store and handle a private key. A private key is a long string of letters and numbers used to generate the corresponding bitcoin address. It should be kept safe as whoever has access to this key controls the bitcoins attached to the key. It is best practice to store it on a flash drive or write it down on a piece of paper. With this, if the device housing the bitcoin wallet gets stolen or damaged, the coins can still be retrieved using a new wallet and the private key.<\/p>\n

CATEGORIES OF BITCOIN WALLETS<\/strong><\/p>\n

Bitcoin wallets can be categorised under Custodial and Non-Custodial. As earlier mentioned, a non-custodial wallet gives the owner exclusive access to the private key, while a custodial wallet functions like regular accounts where the bank has more access to the customer\u2019s money. Custodial wallets are highly risky as coins can be stolen, or the company can go bankrupt.<\/p>\n

Another group of wallets that exist is Hierarchical Deterministic Wallets, HD Wallets. These wallets do not use private keys; rather, a set of common words (seed phrase) are generated to serve as the private key. With this, the chances of losing or forgetting your private key are reduced.<\/p>\n

TYPES OF BITCOIN AND CRYPTOCURRENCY WALLETS<\/strong><\/p>\n

There are two specific wallet types: Cold Wallet and Hot Wallet.<\/p>\n

COLD WALLET<\/strong><\/p>\n

Cold Wallet, also referred to as Cold Storage Wallet is a type of wallet that stores bitcoins offline, without using the internet. Offline storage protects the wallet from unauthorised access or hacking. All cold wallets are non-custodial wallets. Common examples of cold wallets are hardware wallets and paper wallets.<\/p>\n

Cold Wallets are known to be the most secure way to store large amounts of cryptocurrencies.<\/p>\n

Hardware wallets<\/strong><\/p>\n

Hardware wallets are offline devices that securely store private keys. A hardware wallet looks like a USB device and can be connected to the computer to send bitcoins. It is designed to protect the private key from malware. Some hardware wallets\u2019 limitations are that they cost money and can be lost or damaged if mishandled.<\/p>\n

Paper wallets<\/strong><\/p>\n

Paper wallets are pieces of paper with a private key or seed printed on them. It is risky to handle paper wallets as they can easily be destroyed, misplaced, and become prone to human errors. It is advisable to keep multiple copies. Sending bitcoin to a paper wallet would require importing the private key to a digital wallet.<\/p>\n

HOT WALLETS<\/strong><\/p>\n

A hot wallet is any type of wallet that requires a connection to the internet. They can be found on a computer as a desktop wallet or mobile phone as mobile wallets.<\/p>\n

Desktop wallets store private keys on the computer and are usually targets for internet hackers. Mobile wallets could be considered the least secure as the device can be misplaced or stolen. It is advised that every means of protecting the private key is utilised when using hot wallets.<\/p>\n

While being considered the most convenient way to store cryptocurrency, they are not a good choice for storing large amounts of bitcoins.<\/p>\n

Another form of hot wallets is web wallets. This type of wallet exists as exchange platforms, trading sites, etc. Bitcoins stored on these platforms are collected in these companies\u2019 hot wallets. Web wallets are not secure because the wallets\u2019 operators own the private key to all the bitcoins stored on their site. They are, however, convenient for the daily exchange and trading of cryptocurrencies.<\/p>\n

THE BEST BITCOIN WALLET<\/strong><\/p>\n

The choice of the bitcoin wallet to use depends mostly on the needs of the user. Some questions to consider include:<\/p>\n