Right now, one bitcoin is worth about $15,000. By 2020, according to certain analysts and aficionados like antivirus specialist John McAfee, its value will reach $1 million. You simply don’t want to lose your bitcoins with such promising prospects and obviously so much on the line.
The majority of users keep their bitcoins on online exchanges, however even if the underlying blockchain technology that underpins bitcoin is unhackable (at least for the time being), you might still lose your bitcoins there. Just in the previous two months, cryptocurrency exchanges were hacked, resulting in the loss of millions of dollars’ worth of bitcoin. It’s essential to use secure bitcoin wallets!
Obviously, if you’ve been keeping up with cryptocurrencies for a while, you’re familiar with the story of Mt. Gox, the well-known Japanese exchange that suffered a large loss of 850,000 bitcoins in 2014 when hackers breached its security. By today’s pricing, that would be astonishingly worth $12.75 billion! Over 70% of all bitcoin transactions globally were being handled at the time by Mt. Gox.
Other exchanges, such YouBit and NiceHash, a marketplace for bitcoin mining, have also recently experienced losses of bitcoin in varied quantities.
The top bitcoin wallets of 2018 are listed below if you currently hold bitcoins or intend to invest in them.
In case you didn’t know, bitcoins are stored in bitcoin wallets in a manner similar to how cash is kept in a bank or wallet.
The equivalent of holding your money in a bank is to store your bitcoins in an online exchange like Coinbase. You have faith that it will not flee with your money and that it has taken strong security precautions to protect it.
Of course, things are not so cut and dry. Since most cryptocurrency wallets and exchanges are unregulated, clients who lose money have nowhere to turn.
Let’s begin the tally. Top 5 bitcoin wallets include:
Coinbase Wallet: Bitcoin Wallet No. 1
We do not particularly suggest online wallets for the reasons mentioned above. Although Coinbase is the most well-known cryptocurrency exchange, you can also store bitcoin and a few other cryptocurrencies there using it as an online wallet. It is necessary to have an online bitcoin wallet. You’ll need it at some time to purchase, trade, or swap bitcoins or other digital currencies.
You do not have total control over your assets when using an online wallet like Coinbase since part of the keys are kept by the exchange. And of course, if an assault is successful, your bitcoins might just vanish overnight.
Even yet, Coinbase’s two-factor authentication makes it one of the most secure online wallets available thanks to enhanced security procedures. Additionally, Coinbase has unveiled the « Vault, » a storage choice that puts all of your power over your bitcoins.
With no known security breaches to date, Coinbase has a solid track record. It could be the greatest digital wallet currently on the market. Evidently, it has gained a lot of knowledge from its competitors, particularly Mt. Gox, which collapsed dramatically.
Additionally, Coinbase features a user interface that is simple to use and welcoming to new users. You can trade, buy, sell, and swap bitcoin, thus there is no doubt that this gives you more freedom. It is the best bitcoin wallet for beginners due to its straightforward UI.
Trezor: Bitcoin Wallet No. 2
A hard bitcoin wallet is your best option if you have a sizable collection of bitcoins. One of these suppliers is Trezor. Hard wallets are tangible storage devices where you may store your bitcoin keys without using third-party services like Coinbase. Bitcoins are kept secure with cold storage wallets like the Trezor.
Trezor costs $100 and was created by SatoshiLabs, a Czech corporation. The requirement to purchase the more expensive USB stick is really the sole drawback of bitcoin wallet hardware. You can approve transactions with this device even if your PC has been hijacked. The added layer of authentication in place prevents hackers from easily gaining access.
Its number keypad appears at random, making it exceedingly challenging for arbitrary keyloggers to enter.
In the event that you misplace the device, there is even a 24-word seed that was produced at random that you may use to locate your wallet.
Transactions happen quickly and simply need a few clicks. However, it is not advised for little, routine transactions.
Bitcoin.info: Bitcoin Wallet No. 3
With over 15 million wallets and 100 million transactions, this is another online wallet to brag about. Well, achieving such big volumes requires significant investments in innovation and security.
The typhoon that swept down Mt. Gox in 2014 and bitfinex in 2016 didn’t even touch Bitcoin.info. However, compared to bitcoin exchanges, this online wallet is less prone to assaults.
In reality, here is where long-time bitcoin fans stash their currency.
Electrum: Bitcoin Wallet No. 4
This is a trustworthy free desktop storage program. Since 2011 it has existed, making it one of the oldest ones. Although it is not accessible for iPhone users, Android users may download and install the Electrum bitcoin wallet on their smartphones through the Play Store.
You have total control over your private key using Electrum, which is fantastic. The ability to completely control your private keys is rare among online wallets. How to genuinely protect your keys from prying eyes should be your main concern. Your digital assets have an additional degree of protection thanks to two-factor authentication.
Cold storage and hardware wallets are also supported by Electrum.
Ledger: Bitcoin Wallet No. 5
Similar to Trezor, Ledger is a hardware bitcoin wallet. Your bitcoins are protected against hackers by being offline.
Only the real physical device that is plugged into a computer may be used to conduct a transaction. The Nano S, the most well-known item in its line, is one of several goods. On the other hand, one of the products offered by Ledger Unplugged is a contactless bitcoin wallet.
Paper Wallet
The best cold storage option for your bitcoins is this one. A paper wallet is nothing more than a sheet of paper that contains all the necessary information to create bitcoin private keys. In essence, it serves as a physical backup for your keys.
It typically has a QR code that, when scanned, turns it into a digital wallet. By using this form of storage, you can keep your bitcoin wallet offline and safe from skulking hackers.
However, those who are not tech aware could find this choice a little challenging. However, a little perseverance ought to do the trick.
The bitcoin paper wallet should be kept in a safe location since it contains all the details on creating your private keys.
You must put all of your faith in yourself when it comes to bitcoin paper wallets. This is the finest cryptocurrency wallet for you if you simply cannot take the idea of losing your bitcoins. It’s important to keep in mind that hardware wallets and alternatives to cold storage are less useful if you often conduct transactions or actively trade bitcoins.
