As the legendary American rapper, entrepreneur, and music producer Jay-Z once said, “more money, more problems.” One thinks that having more money makes life easier but in reality, it just creates more options and more options lead to more problems. The same is said for Bitcoin wallets. Nowadays, there are so many options to choose from that it seems like an easy choice to download an app and store your cryptocurrency. Don’t be fooled though.
Just because there are more options doesn’t mean they are all quality options. It’s difficult to find a good Bitcoin wallet with the right mix of security, usability, and technological innovation. Picking a BTC wallet should take time and research, just as you would do when picking a bank or investment broker. Fortunately, you came to the right place Today, we’ll cover everything there is to know about Bitcoin wallets to help you choose the best one.
Key talking points:
Simply put, a Bitcoin (BTC) wallet is a wallet where you store, send, receive and exchange Bitcoin. Since Bitcoin is a digital currency, then that means the wallet is a software-based solution as well, using cryptography to store Bitcoin addresses and initiate transactions. Typically, most wallets enable users to store multiple types of cryptocurrencies, with Bitcoin being just one option.
Unlike its physical leather cousin, a Bitcoin wallet is not something you can physically hold (well, unless it’s a hardware wallet but more on that later). A Bitcoin wallet is a software program that was made to interact with the Bitcoin blockchain. Contrary to popular belief, a Bitcoin wallet does not physically hold your BTC. Instead, see it as a representation and control of the blockchain address.
Every Bitcoin wallet has a set of private keys that relate to everyone’s blockchain ledger. These keys are used to initiate Bitcoin transactions which means the owner of those keys has full control over the Bitcoins in that address. That’s where the phrase “not your keys, not your crypto” comes from. If someone ever manages to steal the private keys of a BTC wallet, then they can move the BTC anywhere they want. Just as if someone stole your wallet in real life, the cash inside is theirs.
When researching your Bitcoin wallet, make sure it comes with the following features:
The short answer here is “yes.” If you buy BTC on a crypto exchange, then that exchange will have a built-in BTC wallet for you to hold BTC until you decide to trade it or withdraw it. Even if you manage to buy BTC with cash from your friend, you still need a wallet to store Bitcoin.
Unfortunately not. Some wallets are built by criminals. These wallets have backdoors for hackers to easily steal your private keys and take off with your money. Other wallets are just built by bad developers who leave vulnerabilities in the wallet unbeknownst to them. Then, you have perfectly well-made wallets that just happen to lack high-quality security features like 2FA, security audits, etc. That being said, there are plenty of secure BTC wallets out there so don’t be afraid. Some wallets even come with insurance to protect your funds in the event of a bad event (e.g. like YouHodler wallets for example).
Any good Bitcoin wallet should be free. If someone is trying to sell you a Bitcoin wallet, be careful. All the best wallets out there are 100% free. It doesn’t cost anything to use a Bitcoin wallet aside from the blockchain miner fees associated with every transaction. Some wallets choose to cover those fees for you while others let you choose the fee (higher fees result in faster transaction time).
The crypto industry has come a long way over the years. Nowadays, Bitcoin wallet apps are so user-friendly, anyone can figure it out. To deposit or withdraw Bitcoin using your wallet, just open up your app and find Bitcoin in the wallet section. You should then see buttons to deposit or withdraw Bitcoin. Simply choose an option and follow the instructions. If you want to deposit, a deposit address will be provided. Just copy and paste that address so the person sending your Bitcoin can do so. If you are withdrawing Bitcoin, then you need to copy and paste the address from the wallet on the receiving end of the transaction so you can send the Bitcoin there.
Bitcoin wallets come in all sorts of lovely shapes and sizes. So finding the best one for you should be a relatively easy task. Here are a few different types you can explore.
As its name suggests, a desktop BTC wallet is one that’s installed on a desktop computer or a laptop. Users get complete control over the wallet just as they would with a mobile wallet, just in a desktop environment. The main difference is that some desktop wallets have more advanced functionality like the ability to operate a complete node or full crypto exchange integration.
More or less, a mobile BTC wallet performs the same functions as a desktop wallet but on a mobile device such as a smartphone. Mobile BTC wallets are often more convenient due to their portable nature and the ability to scan QR codes for quick crypto transactions in stores or between peers. There are BTC wallets for all types of operating systems like Android or iOS.
Web BTC wallets are wallets that exist on a website or online service that allow users to send and receive cryptocurrency in addition to storing it. These wallets can be accessed anytime, and anywhere as long as there is the internet. Some of the most popular crypto services in the world are web wallets such as Coinbase, Kraken, Binance, and YouHodler. Security is a concern for web wallets but that can be managed with due diligence to make sure the web wallet you choose has a good history of high-level security and insurance. It’s also wise to use web wallets in tandem with the more secure hardware wallets.
There are countless articles out there dissecting different crypto wallets, trying to decide what is the “best Bitcoin wallet.” To be honest, there is no “best BTC wallet” for us as a collective whole. However, there is a Bitcoin wallet that is best for you and that depends on your wants and needs. At YouHodler, we tried our best to create a diverse, multi-faceted wallet that appeals to all sectors of the crypto industry. Is our wallet the best Bitcoin wallet? Well, that’s for you to decide.
When asking what the best Bitcoin wallet for beginners is, it’s important to first dissect what a beginner demands from a Bitcoin wallet. Most importantly, is a user-friendly interface. Beginners who are new to crypto are taking in tons of information every day and they don’t need a complicated app on top of that to learn. Clean, simple interfaces are best for beginners with minimal navigation required. That’s why we designed YouHodler’s interface to appease beginner users with simple designs, clear buttons, and plenty of information databases to dig into.
Advanced Bitcoin users and investors also appreciate clean simple interfaces on their Bitcoin wallet however, they also want something flexible enough that meets their high demands. Advanced crypto traders want a wallet with low transaction fees, built-in crypto exchange capabilities, advanced security, staking features, and advanced financial services like loans and crypto trading. Advanced users are busy people and they can’t be bothered using multiple apps for different activities. That’s why we designed YouHodler to be the true one-stop-shop solution for advanced users with a wide array of FinTech services to fit their every need.
Data suggests there will be over 18 billion mobile devices in use around the world by the year 2025. Suffice to say, we live in a mobile world and that’s only going to increase. Hence, mobile Bitcoin wallets are perhaps the most important wallets in development. There are thousands to choose from and the key is to find one with maximum efficiency and security. YouHodler’s mobile wallet has 2FA, 3FA, and the ability to lock your funds from withdrawal--requiring ID verification to unlock it. On top of that, the team runs regular security audits to ensure all wallets are secure from malicious actors. For people on the go in a mobile economy, they want to make sure their digital wallets are present, protected, and easy to use. Not all Bitcoin wallets match this quality but YouHodler tries its best to.
As mentioned earlier, it’s a smart idea to buy a Bitcoin hardware wallet to use in cooperation with your mobile or web wallets. Bitcoin hardware wallets are ideal for the long-term storage of crypto assets. Ideally, you want to keep some on a mobile or web wallet for payments, trading, and staking while keeping the rest safely in a secure hardware wallet. The Ledger series of hardware wallets are extremely popular and recommended by most advanced crypto users. Trezor is another brand worth mentioning.
Once again, this comes down to the idea of “not your keys, not your crypto.” The best bitcoin wallet for long-term software storage are wallets where you fully own the private keys. It’s best to use this in combination with more diverse web wallets to enjoy the benefits of both worlds.
The best bitcoin wallets for security are the ones that prioritize security. Stay away from wallets that don’t have PIN options, 2FA, or basic security features. YouHodler has a PIN or thumbprint required to enter the app in addition to 2FA and 3FA upon request. We also run regular security audits to ensure our walls are strong and impenetrable. Lastly, we are backed by Ledger Vault and Fireblocks for insurance and secure crypto transaction management solutions.
While the battle between iPhones and Android phones wages on, it’s nice to know that crypto doesn’t pick sides. Most--if not all--of the most popular bitcoin wallets, can be found on both Android and iOS operating systems.
Click here to download YouHodler for Android.
We’re also at the Apple store too! Click here to download YouHodler for iOS and ready all about our Bitcoin wallet functionalities for your iPhone.