What Are The Best Bitcoin Wallets?
Before discussing the best Bitcoin wallets, let’s go into a quick overview of Bitcoin and how wallets come into play. Bitcoin is the most popular cryptocurrency, and a worldwide system for payment. Bitcoin was invented in 2009 and has since gained immense popularity. It is the leading open-source software for cryptocurrencies. Its current value stands near to $9,000 per bitcoin, and its market cap is over $300 billion. Normal transactions (with regular currency) have an intermediary in the form of a bank. When it comes to cryptocurrency, the need of an intermediary is vanquished. All transactions are direct (peer to peer) and are between source and destination. The reason that most people buy bitcoin today isn’t just its use as a system for payment but also it serves a purpose as a utility termed as “digital gold”. With its soaring price and the profits that come with it, bitcoin is certainly something for the present, and a big part of the future. Like every form of currency, cryptocurrency must be kept securely and safeguarded. This protection is provided by cryptocurrency wallets. Let’s dive into our list of best bitcoin wallets.
Before choosing a wallet to use, a few things must be kept in mind. A cryptocurrency wallet is a software that allows you to easily store and manage your public keys (a public digital code associated to a certain amount of currency) and private keys (a secure digital code known only to you and your wallet). Basically, a cryptocurrency wallet is a secure digital wallet used to send, receive and store digitized currency. Great care must be taken when choosing a wallet. A good wallet is easy to use, provides for security and backup, is constantly updated and allows you to control your private keys.
Hardware wallets are designed like USB devices and can be connected to any computer. More than 35% of cryptocurrency users use hardware wallets. They are very secure as they are not connected to the internet 24/7, they can be stored anywhere, secured with pin numbers and are easy to use. Generating and storing private keys offline using a hardware wallet ensures that hackers have no way of reaching the cryptocurrency of a user. Hardware wallets are considered to be the best wallet type for those reasons. Here are a few of the best hardware wallets:
Ledger Nano S
A user can sign into the device through a 4 digit pin each time it is plugged into a computer. During setup, a 24-word seed is created offline. This is used for recovery purposes. An additional word (checksum) can be added to the seed but must not be forgotten, as it is added to the original 24-word seed. A Ledger Nano S hardware wallet is one of the most inexpensive hardware wallets and is available for $95. It looks like an USB device. Transactions cannot be manipulated with as they are physically verified on the embedded screen with the press of a button. What makes it more secure is the fact that it also supports high second-factor authentication – “FIDO” (Fast Identity Online) on websites and their subordinates (like Google, Google Dropbox). Such is the security provided, that they can even be used on a hacked computer and still be uncompromised. An added advantage is the fact that each cryptocurrency can be managed from the same device. A Ledger Nano S wallet can be used in offline mode as well. Ledger Nano S is one of Best Bitcoin Wallets on the market.
The video below will show you in detail how to set up a Ledger Nano S wallet.
During setup, a 24-word seed is created offline. This is used for recovery purposes. An additional word (checksum) can be added to the seed but must not be forgotten, as it is added to the original 24-word seed. Trezor operates as a cold storage device, which essentially means that it is always offline. Trezor was initially created for the safe storage of Bitcoins. Its name literally means “vault”. Trezor can be used for Ethereum with the MyEtherWallet web interface. It is a small, key-shaped device which is connected to a computer through a USB cable. The cost of a Trezor hardware wallet is $99. It is considered to be the most secure wallet available. A pin code is required to access the device and after every wrong attempt to enter the pin, the user has to wait twice the length of the previous wait time.
The video below serves as a guide to how to use a Trezor wallet.
Keepkey makes our list of the best Bitcoin Wallets. KeepKey costs $99 and is readily available on the market. It is a very secure wallet which provides for bank-grade security. This is used for recovery purposes. It has a 3.12-inch screen and is bigger in size in comparison to Trezor or Ledger Nano S wallets. During 24-word seed is created offline. An additional word (checksum) can be added to the seed but must not be forgotten, as it is added to the original 24-word seed. KeepKey can securely connect a user to an exchange like ShapeShift. Perhaps the greatest advantage of purchasing KeepKey is the fact that it can run on multiple platforms like Windows, Mac, Linux as well as android. KeepKey is considered to be one of the best hardware wallet for Bitcoin as it has a solid backup system. If a user loses his/her device, the backup to the account can be easily obtained.
The below video serves as a guide as to how to use a KeepKey wallet.
Ledger HW.1 is the smallest hardware wallet available. It comes in 3 variants, the Classic version, the Multsig version and the Enterprise version – depending on the usage and requirements of a user. Bitcoins are secured by a microchip locked by a PIN code. A Ledger HW.1 hardware wallet costs $26. The updates are free and arrive on a consistent basis. Ledger HW.1 is very secure and guarantees the prevention of loss of cryptocurrency due to hacking. The device has a double factor authentication system which comes in the form of a security card. This feature makes up for the lack of a screen. It does not support multiple cryptocurrencies and is used only for bitcoin. Ledger HW.1 has a multi-signature feature which allows users to organize a transaction which requires more than one key. This an added advantage. It is also much cheaper in comparison to other hardware wallets. It makes up for the lack of a screen with its added features. If a user loses his/her device, data can be recovered with the help of the backup option. A point to be noted is that fact that 3 wrong attempts at entering the pin during startup leads to the erasing of all data on the device – this serves as a method to provide security in the case of an unknown person trying to access the contents of the wallet. Ledger HW.1 is also one of the best Bitcoin Wallets on the market.
The video below serves as a guide as to how to use a Ledger HW.1 wallet.
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