Picking a best Bitcoin wallet is such a hard task for any users. So, this is the ultimate guide to finding the best Bitcoin wallet (and wallet for other assets) for you.
A brief outline of a Bitcoin wallet
Your Bitcoin wallet is the very first thing you should consider when entering the cryptocurrency space.
A wallet is basically the equivalent of your bank account. It allows you to send and receive Bitcoin and other assets, store them in a safe way and check your balance.
Similar to your internet banking interface, a crypto wallet is an interface between you and the blockchain.
There are two elements of every Bitcoin wallet: a public key and a private key. The public key is like your bank account number, while the private key functions as your PIN.
Always keep in mind that the only one that has access to your private key is YOU! If not, your funds are under serious risk.
Due to this concern, the best Bitcoin wallet for you will be one that doesn’t hold your private key. All the wallets listed below conform to that principle.
Types of Bitcoin (and other assets) wallet
There are many kinds of Bitcoin wallets. They can be online apps, websites, devices that stay offline or even installed on your desktop or mobile phone.
The variety of crypto wallets available can make it a hard choice, so let’s try to figure out the best fit for you.
A hardware wallet is a physical electronic device that stores your Bitcoin or other assets offline. It functions as totally secure storage, rather than as a platform for trading or exchanging coins, as other wallets do.
The core innovation is that the hardware wallet must be connected to your computer, phone, or tablet before coins may be transacted. As a result, when the device is not attached, your funds are safely stored away from the chaotic Internet and far from prying eyes.
Hardware wallets are an excellent choice if security and privacy are your top priorities.
In addition, as long as you create a secret backup code, you can retrieve your wallet at any time, even if you lose or damage your hardware device.
Advantages of Hardware Wallets
- The most hacker-proof kind of storage.
- Easy to backup and secure.
Disadvantages of Hardware Wallets
- More expensive than other kinds of wallets.
- Only used to store cryptocurrencies, not to trade them. Requires connection to an exchange platform in order to do so.
- Might not be the best bitcoin wallet for beginners. Newbies may find them hard to set-up and use.
As opposed to hardware wallets, software wallets are applications running on the Internet.
This kind of Bitcoin wallet is installed on Internet-connected devices such as desktops, mobile phones, or tablets.
As they are online, software wallets generate your private keys when there is an Internet connection. As a result, they are obviously not as secure as hardware wallets.
Flexibility is the biggest advantage of using a software wallet. As it’s a mobile app, you can access your crypto wallet and send and receive your coins wherever you go, whenever you want. So what makes such application become the best bitcoin wallet?
Advantages of Software Wallets
- Easy to store small amounts of coins and tokens.
- Many software wallets that are integrated with an exchange help users to trade coins instantly.
- Accessible across multiple devices. Some popular wallets are available for iOS, Android and desktop, and you can access them from different devices.
- Multiple coins available. You can store many different assets with software wallets, whereas hardware wallets support a lot fewer.
- It’s an all-in-one wallet. They have many useful additional functions such as a DEX, staking, and a Dapps browser. These wallets are not just for storage, they are multi-function crypto devices.
Disadvantages of Software Wallets
- Not safe enough for storing large amounts of Bitcoin.
- You must trust the wallet provider to securely store all your information and transactions.
Paper wallets come from the idea that you should keep your private keys on physical paper, so no one can see them and steal your assets. Paper Wallets let you print your own encrypted keys and without a scanner, no one can read the encrypted code.
Physical wallets have long been considered one of the safest ways to store coins. If properly constructed, and provided that certain precautions are taken, it will be nearly impossible for someone else to access your holdings.
Advantages of Paper Wallets
- A paper wallet is an extremely secure way of keeping your coins safe and obviously is not subject to cyber-attacks or malware.
Disadvantages of Paper Wallets
- The biggest risk with a paper wallet comes down to user error. Once it’s lost, stolen or just faded, there’s no way to recover your funds. So if you have a bad memory, this might not be the best bitcoin wallet for you.
- Paper wallets don’t cater to many cryptocurrencies, giving holders fewer options.
How to pick the best Bitcoin wallet
Everyone has their own criteria for the best bitcoin wallet to store their coins and there is an ever-growing list of options. Before picking a wallet, especially a best Bitcoin wallet, you should consider how you intend to use it.
Let’s figure that out by answering these questions below:
1. Long-term holding or frequent trading?
If you just want to ‘hold to die’ or make some long-term investments, a Hardware Wallet or Paper Wallet is the best choice.
However, if you need a wallet for frequent trading, it would make a lot more sense to consider a software wallet, as they make transactions a lot more convenient.
2. Flexibility or high-security?
As previously mentioned, flexibility is the greatest feature of software wallets. They’re multi-functional and can work across multiple devices, so you can access them whenever and wherever you have an Internet connection.
However, flexibility does not come for free; you have to trade it for the higher levels of security that other wallets bring to the table. If your top concerns are privacy and the safety of your funds, a Hardware device is the best bitcoin wallet for you.
Best Bitcoin Wallets & Cryptocurrency Apps in 2020
After considering the different types of crypto wallet carefully and making your choice, it’s time to move on to the top Bitcoin wallets apps and hardware.
Best Bitcoin Wallet App in 2020: Trust Wallet
Trust Wallet is one of the most well-known software wallets on the market. Owned by the Binance Exchange, the wallet has everything you’re looking for in a digital assets wallet, such as low transaction fees, high-speed transfers and a wide range of assets supported. In addition, Trust Wallet has other features such as the ability to stake POS coins and a Dapps browser.
However, the wallet still has the inherent disadvantage of software wallets: you do not have full control over your funds. Your transactions and data are still tracked, which is why we should be looking at getting an anonymous Bitcoin wallet. Let’s check one out.
Best Anonymous Bitcoin Wallet in 2020: Incognito Wallet
The idea of sending Bitcoin without anyone knowing is the main purpose of an anonymous crypto wallet.
With one, you can send Bitcoin and other assets without anyone being able to track details of the sender, receiver or how much was involved. Therefore, your financial data and personal information only belong to you and no one can figure out your real identity.
There are many kinds of wallets that help you to send Bitcoin anonymously. However, the Incognito Wallet is the best choice. This wallet turns all your favourite coins into a privacy version; for example, BTC can be swapped for privacy BTC (pBTC) at a rate of 1:1, allowing you to transact it totally anonymously. It’s also quick and instant to switch it back to regular BTC at any time.
The final plus is that the Incognito Wallet is totally free to download and use. It’s available on Android, iOS, and has a Chrome extension.
To sum up, with all the features it has, this wallet meets all your needs as one of the best anonymous bitcoin wallets in the market.
Best Bitcoin Hardware Wallet in 2020: Ledger Nano S
Ledger is one of the best-known companies that manufacture high-security hardware wallet devices. If you want to keep your bitcoin wallet anonymous, this is the solution for you. The Ledger Nano S is also one of the cheapest hardware wallets on the market, making this decision a no-brainer.
For those who don’t mind splurging a little extra, you can also consider another model – the Ledger Nano X – which has extra storage space and the ability to transact with just a phone or tablet, rather than a PC. In any case, both models do their jobs very well and with Ledger’s proven reputation, you can’t really go wrong.
The other hardware options for best bitcoin wallet are Trezor Wallet, KeepKey and ColdCard.
Best Bitcoin Paper Wallet in 2020: paperwallet.com
This is the most popular BTC paper wallet generator. It’s the easiest-to-use and with just a few clicks on your web browser, you can easily generate your own wallet.
The other ones worth considering are Bitcoin.com and Generator.net Paper Wallet. Regardless, whichever Paper Wallet you use, always keep in mind that it must be stored in a safe place where only you can access it.
Final words on the Best Bitcoin Wallet App
Clearly, there’s a huge number of wallets to choose from in the crypto sphere and the market is growing all the time.
Besides the wallets that we’ve mentioned in this article, Blockchain.com Wallet, Coinbase Wallet, imToken Wallet, Exodus Wallet or Mycelium Wallet are also worth your consideration; these are all popular software wallets that have a good reputation in the crypto community. We would, however, like to point out that anonymous wallets, such as Incognito, strike a fine balance between security and convenience; they are definitely worth looking at first.
Finally, I hope this article will help you choose the best Bitcoin wallet for you in 2020 and beyond.