Bitcoin (BTC) has dominated the cryptocurrency market for years as one of the first digital currencies. Despite a growing number of alternatives, Bitcoin still claims the largest market share and has become a household name since its peak in 2017. Today, over 23 million people own the open-source cryptocurrency.
If you’re considering investing in Bitcoin, you’ll need a place to store your investment. Purchasing Bitcoin requires more than fiat currency and a bank account. Consumers also need a “wallet” to store their Bitcoins, similar to paper money.
What Is a Bitcoin Wallet?
Unlike traditional forms of fiat currency, like the dollar, yen, and euro, digital currency can’t be physically stored in a traditional wallet, bank, or safe. Instead, you’ll need to find a cryptocurrency wallet that stores the private keys required to access your bitcoin on the blockchain.
There are a variety of wallet types available. Online wallets allow you to store your information via a website, while desktop wallets let you keep your crypto cash on a mobile device or your desktop. Hardware wallets are physical devices that allow you to keep your bitcoin completely offline — also known as cold storage.
Some people compare these hardware wallets to a USB drive for your bitcoin. There are even paper wallets, which are literally just pieces of paper with your private key printed on it. While this may be the cheapest way to achieve cold storage, we don’t recommend it, since paper is easily lost or destroyed.
There are dozens of wallets to choose from: the Ledger Nano, Trezor, Mycelium, KeepKey, Jaxx Liberty, Electrum — and many more.
5 Best Bitcoin Wallets
Here are five of the top bitcoin wallets to check out:
As one of the oldest bitcoin hardware wallets on the market, Trezor offers users the security of offline, cold storage. Like other hardware wallets, it stores your private key (a string of code) and does not require interaction with software on your computer. As such, hardware wallets are safe from viruses or online malicious activity that can result in theft.
- As a hardware wallet, the physical device is compatible with both desktops and smartphones and can be accessed through a variety of operating systems, including Windows, MacOS, Android, and Linux.
- In addition, Trezor also can work in tandem with software, mobile, or web wallets, adding an additional layer of security to your cryptocurrency or allowing you to limit the amount of cryptocurrency you store on other wallets.
- Trezor now supports over 500 cryptocurrencies coins and tokens, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, making it an ideal option for those who intend to expand beyond Bitcoin.
While Trezor has many benefits and is a top choice for many consumers who plan to regularly invest or make a significant investment, beginners may be deterred by the price tag.
Today, there are two primary models available to consumers, the Trezor One, which was the original model, and the Trezor Model T, which is a new model that offers additional bells and whistles, like a color touchscreen.
Read full article here: Best Bitcoin Wallets: Online, Desktop, and Hardware Options