This is a secure online location where you can store your private key (the secret number for each bitcoin) in a safe space, with resilient checks to prevent cyber theft. This article will help you understand more about the importance of bitcoin wallets and how to select the most suitable one for you.
This article is designed to be used as a simple guide and should be read with the caveat that the information is correct at time of going to press and has been written with desk research rather than personal experience. At WikiJob, we are not financial advisors and any information provided throughout this article is for educational purposes only. When you are choosing a specific bitcoin wallet you should undertake your due diligence and research to ensure that you are finding the right bitcoin wallet for you. Due to its relative ease of use, Coinbase allows you to sync up your account with your bank account and you can purchase many different cryptocurrencies easily. Its size means that you can benefit from its stringent security checks and Coinbase has learnt from competitors who have fallen to hackers. Get £5 in Bitcoin after your first trade on Coinbase. Terms Apply. After you make a crypto purchase, BTC will be added to your portfolio. Limited time offer. Offer available to new users only. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using different contact information. Coinbase may update the conditions for eligibility at any time. Unlike other exchanges that buy and sell on the open market, Coinmama funds trades from its company holdings; it is also a registered money business service in the US. It could be argued that this added security for users does come at a price, with Coinmama’s fees being on the high side compared to other platforms. You can buy bitcoin through Coinmama but it’s important to note that you cannot sell it back. This isn’t necessarily a negative; this company will be well suited to those who simply want to buy bitcoin but don’t need an exchange.
Uphold allows clients to trade directly between different asset classes in one transaction – so you can trade anything to anything. Uphold also focuses on Socially Responsible Investing (SRI) by providing an opportunity to trade on carbon tokens for more than just a financial return. New traders will like the transparent pricing – there are no commission or account fees, and no withdrawal or deposit costs, but the trading fees are built into the spread. Uphold will present a complete price for each trade that includes fees, so you will know exactly what the trade will cost. Uphold has a quite simple trading platform that is available on the web, as a desktop application and on mobile. Uphold also offers a debit card option, where you can pay for goods and services using any asset in your portfolio – and earn cashback as well as crypto on your purchases. Uphold has several wallets suitable for different currencies, with no custody costs, which is great for traders who buy through the exchange. There are separate wallets for:
Bitcoin XRP Ethereum Litecoin Bitcoin Cash Dash Bitcoin Gold
The Uphold wallet has rigorous safety standards built in, and around 90% of all crypto held by Uphold is stored offline in cold storage. You can use wallets on Uphold to make payments to vendors as well as storing and transferring funds.
Regulated by the NYSDFJ, Gemini is one of only a handful of cryptocurrency exchanges that are regulated and available in all 50 states as well as 50 or more countries around the world. Traders can buy, sell and exchange more than 30 cryptocurrencies, and while crypto conversion is free, there is a convenience charge on each transaction of 0.50% over market price, and a trading fee of $0.99 to $2.99 or 1.49% for transactions over $200. The trading platform offers multiple tools so traders can do more than just buy and sell cryptocurrency, and the mobile application is available on iOS and Android, fully optimised to buy and sell on the go. With the mobile app you can set price alerts, and even complete an account set up directly in the application. Gemini has two different types of wallets available. There is a fully insured hot wallet, as well as institutional-grade cold storage, and both support all listed assets with upgrades available as and when new cryptocurrencies are added to the exchange. Gemini is a cryptocurrency exchange that has never suffered a successful hacking attack. The industry-leading security and protection for assets stored in the wallets are backed by the exchange being the first major exchange to launch support of SegWit and now offers native SegWit addresses. Gemini customers also have access to world-class customer support if they need help with any part of their cryptocurrency transaction and storage.
Crypto.com has more than 10 million users and provides services in 90+ countries globally. For security, 100% of user crypto is kept in cold storage, while the hot wallets that are used to ensure fast transaction speeds contain corporate funds. All fiat currency is held in regulated custodian bank accounts, and there are strict security protocols around access to wallets based on the principle of least privilege. You can deposit 20+ fiat currencies using a credit or debit card, as well as through bank transfer, and through the app you can buy cryptocurrency at the true cost (with a commission). The Crypto.com offering includes a VISA card with the potential to earn up to 8% in CRO (The Crypto.com currency), a Pay application that lets you use your cryptocurrency balance to make payments online where accepted, an instant loan based on your cryptocurrency balance with no late fees and instant sending of crypto to other app users with no fees. With the Crypto.com app, you can earn up to 8.5 % pa for staking crypto, and up to 14% if you stake stablecoins (which are designed to offer price stability because they are aligned with an asset). The Crypto.com wallet that is available through the app can store up to 100 cryptocurrencies and is completely user-managed, so each app user has complete control of all keys. This is what is known as a DeFi wallet, and this offers a full suite of DeFi services. You can import an existing wallet into the Crypto.com DeFi wallet and create a 12/18/24 word recovery phrase for extra security and peace of mind (in case you lose your key). When you send crypto from the DeFi wallet, you can decide the speed you want it to be sent, and the relevant network charge for use. You can earn up to 5% in CRO rewards for holding a CRO balance in your wallet. Adding the DeFi wallet to the app then gives the user access to a diverse range of financial services, including crypto purchases and DeFi token exchanges.
Trezor is a physical device that you will need to plug into your computer giving you confidence that it cannot be attacked or stolen. It has a strong focus on password security, having a two-factor authentication process. The sole purpose of this particular wallet is to ensure that your bitcoin cannot be stolen.
It is designed to be used with multi-currencies and can be managed easily on your desktop as well as integrating with many mobile apps.
It is quick and easy to install on your computer, making it a favourite with newcomers; however, it should be noted that, as stand-alone software, you are at risk if something physical happened to your computer. You have the option to split your bitcoin between several wallets – something which is useful if you have purchased different currencies.
As well as storing bitcoins, you can also exchange. The wallet uses graphs to showcase how well your bitcoin is performing, making it a popular option for those who are investing heavily.
It’s also fully compatible with many hardware wallets as users benefit from the security of hardware yet the flexibility and ease of mobile applications. It’s free to install but does charge fees for transactions.
A private key is a secret number attributable to a specific bitcoin which is saved in the wallet of the purchaser. The private key is vital for any future transactions. Therefore, you need to feel comfortable that you are holding that information in a secure setting that can handle any potential cyber theft. Unfortunately, if a bitcoin is stolen it is almost impossible to recover.
What Types of Bitcoin Wallets Are Available?
There are several distinct types of bitcoin wallet:
Paper. This is a written document which details your public bitcoin address as well as the private key which allows you to conduct transactions. Many paper bitcoin wallets use software such as QR codes to allow you to quickly scan in the information when you want to buy/sell bitcoins. The offline function of the wallet makes it extremely resilient against cybercrime, although you would need to take precautions to ensure that the document is held securely. Desktop. These wallets are directly installed onto your PC. Because they don’t rely on any third parties to handle the data, they do have a strong security element. They give users complete control over their bitcoins, making them a popular option for people who only wish to invest small amounts of money. However, because they are only accessible on desktop PCs, they do limit the flexibility of bitcoin transactions. Mobile. These usually function in the format of dedicated apps that you can download onto your smartphone. This means that you can trade bitcoins wherever you are; however, it should be noted that some apps may not be transferrable between mobile or android and if a cyber hacker gains access to your phone, then your security could be at risk. Web. E-wallets are managed and maintained by third-party agencies. Although they can replicate both desktop and mobile variations, you are reliant upon that third party’s security processes. If they are hacked, you would lose everything. Hardware. These are generally felt to be the most secure bitcoin wallet. It uses an external piece of hardware (such as a USB stick) to secure the private key of the bitcoin. This means that they are resilient against threats and can be immune to the prospect of computer viruses.
Each has its advantages so we always recommend undertaking your own research before you decide which is the best bitcoin wallet for you.
Should You Have One or Multiple Wallets?
We’ve previously talked about how the term ‘bitcoin’ covers a myriad of currencies, from bitcoin itself through to Bitcoin Cash and Bitcoin Gold. Although they may have started in the same way, they have forked off to become currencies in their own right. Therefore, it may be advisable to choose to have more than one bitcoin wallet. Many investors choose to use individual wallets for each currency to facilitate easier transactions and for added security. Some people may choose to use multiple wallets to store their bitcoin private keys to have added security – for instance, they may like the flexibility of a mobile wallet but enjoy the security levels of a hardware option. Many wallets will integrate with others to allow this added flexibility. However, it should be noted that each wallet has its own maintenance which could add to the time that you spend on your Bitcoin account.
Key Considerations When Choosing a Bitcoin Wallet
When you choose the best bitcoin wallet for you there are many things you may need to consider:
What is the security history like? Has that particular bitcoin wallet been effective at blocking hackers or have there been any high profile thefts? How easy are they to use? Does the style of wallet fit in with your lifestyle? Is the user experience intuitive?
If you’re new to bitcoins then you may need something basic to help you get to grips with it, whilst experienced bitcoin users may need something a little more comprehensive to help them maximise their investments. When choosing a wallet to store your bitcoin, you should consider factors like security history, ease of use, user experience and whether it will suit your lifestyle. Beginners may benefit from choosing a basic wallet, whereas experienced bitcoin users will probably need a wallet with additional features to maximise their investments. If you are only storing cryptocurrency and fiat coins, there is no fee to use a bitcoin wallet. If you intend to carry out transactions, the owner of the exchange or device managing your wallet will charge various associated fees. One of the best and cheapest bitcoin wallet options is Coinbase. This platform charges between 0.5% and 4.5% for buying, trading and selling cryptocurrencies. Unlike options such as Coinbase and Binance, Exodus does not hold funds or store user credentials or private keys, so it cannot access a users wallet or cryptocurrency. If Exodus were to be attacked by hackers, the hackers would not be able to access user funds, because credentials are stored directly on the user’s computer or mobile device. However, this does mean that the wallet is only as secure as the device it is installed on and the security measures put in place by the user. Binance offers some of the lowest available fees. Users with a trading volume of 100 bitcoins/50 BNB or under are charged a fee of 0.10% for all transactions. For takers, this fee reduces once you acquire 500 bitcoin or 200 BNB. With a trading volume of over 150,000 bitcoin/11, 0000 BNB, takers pay a fee of 0.04% and makers pay a fee of 0.02%. If you have BNB tokens, you can access other discounts. Paying your fees in BNB will provide access to additional discounts. If you choose to use a Coinbase Wallet, your private keys are stored on your device, not on a centralized exchange. Put simply, the Coinbase website is like a brokerage, which can be used to store crypto. The Coinbase Wallet is more like a traditional wallet, which the user has complete control over. As we previously mentioned, we would highly recommend that, before choosing a specific bitcoin wallet, you do as much research as possible and think about what you want to use it for and how. WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
