What Is the Best Bitcoin Wallet?

If you’re interested in getting started as a trader, then the first thing you’ll need to buy and sell crypto is a cryptocurrency wallet. Crypto wallets, rather than storing actual cryptocurrency, store the private keys traders can use to access their holdings.

For many of us, Bitcoin is the very first crypto we choose to invest in. This is typically due to its familiarity, even for those who have little experience in the trading world. So, if you’re one of the many new traders who want to start buying Bitcoin, then you’ll need to choose a wallet to store it! To help make your decision easier, we’ll discuss what makes a good Bitcoin wallet. After that, we’ll list our top recommended hot and cold wallets for Bitcoin traders. Let’s begin!

What Makes a Good Bitcoin Wallet?

Before we reveal the best cold and hot Bitcoin wallets, we want to discuss what actually makes a good wallet. Not all wallets are equal, and some are simply much better options than others. So, here are the main factors that separate the good wallets from the best ones:

Security

The most important aspect of any crypto wallet is its security. Hackers are constantly trying new strategies and advancing their technology to infiltrate traders’ wallets and steal their crypto assets. Therefore, the best Bitcoin wallets will have robust security measures, biometric authentication, and military-grade chips (for cold wallets).

Interface

A crypto wallet with an easy-to-use and intuitive interface will make it easier for beginner and expert traders alike to access and manage their crypto assets. Furthermore, an overly confusing application will only discourage traders and may expose them to various security threats. Therefore, the best crypto wallets will be well-suited for even first-time crypto investors.

Device Compatibility

Ideally, a good crypto wallet should be compatible with a wide range of brokerages and crypto exchanges. Some crypto exchanges, such as Binance, offer traders built-in wallets, but these can lack important features and leave users with a lesser degree of control.

Brokers, on the other hand, can communicate with users to ensure that their chosen wallet is compatible with their services. Traders can proceed with this option by signing up for a brokerage-matching platform. Regardless of using an exchange or broker, before choosing a crypto wallet, you should check its available compatibility options.

Asset Availability

Finally, although this article discusses the best Bitcoin wallets, we understand that most traders choose to invest in more than one crypto coin. After all, a diversified portfolio is the best way to make a steady, long-term profit and reduce risk.

Some wallets only support a handful of coins, whilst others allow users to store thousands of different types of crypto, from household names such as Bitcoin to lesser-known altcoins. If you already know which types of coins you want to buy, then be sure to check on your chosen wallet provider’s website which assets they support before making a final decision.

Cold Bitcoin Wallets

Cold (hardware) wallets are small physical devices closely resembling USB thumb drives. Traders can use this type of Bitcoin wallet by inserting it into a device such as a computer or a laptop.

These wallets are the most secure option as they cannot be intercepted by cybercriminals. Additionally, users will not have to rely on third-party applications to access their crypto assets. However, if you use a hardware wallet, you must be careful not to lose or damage your device.

Cold wallets are the best option for traders who intend to store a large amount of crypto and are used to planning ahead. If you want to manage your crypto holdings on the go, you must always remember to bring your wallet. This may be an inconvenience for some traders who are regularly rebalancing their portables and want to access their holdings at a moment’s notice.

It’s important to note that cold wallets usually require an upfront cost. They also need some setting up and configuring, which may make them unsuitable for inexperienced traders. Despite this, if you want to prioritise your security and privacy, then cold wallets are definitely worth considering. These are the safest option for storing your crypto and can be well worth their upfront cost in the long run!

Pros

• Additional security
• Portable
• Enhanced privacy

Cons

• Potential for loss or damage
• Has upfront cost
• Less accessibility

The Best Cold Wallet for Bitcoin – Ledger Nano S Plus

The sleek, secure, and affordable cold wallet by the reputable company, Ledger, is a fantastic option for crypto traders. This wallet supports over 5000 different cryptocurrencies, including Bitcoin, Ethereum, and XRP, as well as various NTFs.

Available in multiple colours, Nano S Plus consists of a 128×64 px screen that displays valuable information, and the entire device is no bigger than a standard USB drive. Traders can easily carry this device around in their bag, pocket, or physical wallet without any issue.

The Nano S Plus also brings security to the next level through its military-strength security chip and Blockchain Open Ledger Operating System (BOLOS). Ledger hardware wallets have no known history of being impacted by remote hacks and are each independently audited by the National Agency for the Security of Information Systems (ANSSI).

Overall, this device looks polished, has top-notch security features, and supports a wide variety of assets. This is our top recommended cold Bitcoin wallet and is suitable for both first-time and experienced traders who want to store their crypto assets in a secure, physical device.

Hot Bitcoin Wallets

Hot (software) wallets are online applications users can download on their mobile or PC devices. Most hot wallets are compatible with major operating systems such as Windows, macOS, iOS, and Android, making them extremely convenient for anyone who wants to access their crypto holdings regularly.

Furthermore, software wallets have a gentle learning curve, meaning that they’re better suited to inexperienced traders. They typically do not require any upfront cost and are much more affordable compared to hardware wallets, which can cost up to £200. All traders need to do is sign up for their chosen hot wallet, download the software, and receive their private key. After that, as long as they have an internet connection, users can easily manage their crypto assets.

However, as opposed to cold wallets, hot wallets are vulnerable to various cyber threats. Hackers have a much better chance of infiltrating an application compared to a physical device to steal crypto from traders. Therefore, hot wallets are not the best choice for anyone who wants to buy and store large amounts of Bitcoin and other cryptocurrency.

Pros

• Convenient crypto storage
• Beginner-friendly
• Low cost

Cons

• Exposed to cyber threats
• Requires internet access
• Third-party dependence

The Best Hot Wallet for Bitcoin – Exodus

The Exodus wallet claims to be the only crypto wallet you’ll ever need, and it’s clear to see why! This hardware wallet allows users to access DeFi applications, buy NFTs, and explore Web3, all within the app. Exodus also supports over 250 cryptocurrencies along with various other assets.

You can download this hot wallet on your desktop or mobile device to access all of its exciting features. This includes rewards, built-in swaps, live charts, and staking capabilities. If you’re having trouble using these features, then feel free to contact the helpful Exodus support team. However, this may not be necessary since this hot wallet is famously extremely beginner-friendly and easy to use.

Additionally, the app receives frequent updates to patch any security vulnerabilities, giving its users peace of mind. Although, as we’ve said, hot wallets aren’t as secure as cold wallets, Exodus still does a terrific job at shielding its users from cyber threats. The app also has various security measures integrated, such as face ID, touch ID, and a 12-word recovery phase.

All in all, Exodus is a manageable hot wallet that’s perfect for traders of all experience levels to store their Bitcoin. With a slick user interface, a wide range of security features, and plenty of assets to choose from, this wallet makes storing your cryptocurrency swift and hassle-free!

Summary

To summarise, crypto wallets are vital tools for traders to store and manage their cryptocurrency assets. If you’re just getting started as an investor, then choosing a suitable wallet should be your first step.

Overall, the best crypto wallets will utilise top-tier security measures, have an intuitive interface, support a wide selection of assets, and be compatible with multiple exchanges/brokers.

The two main types of crypto wallets, hot and cold, both have set pros and cons. Whilst a hardware wallet is best for security enthusiasts, a software wallet tends to be the more convenient option. If you’re looking for a secure, sleek, and low-cost hardware wallet, then you can’t go wrong with the Ledger Nano S Plus. On the other hand, if you’re after a full-featured, accessible, and beginner-friendly software wallet, then we highly recommend using Exodus!

Whichever wallet you choose to store your Bitcoin and other crypto coins, just remember to keep your private keys safe, regularly update your software, and never send crypto to anyone you don’t know!