For many investors, the terms crypto and blockchain have become part of everyday life and conversation and are almost interchangeable with Bitcoin (BTC). Since it jumped onto the scene in 2009, Bitcoin has become an overnight sensation despite the inherent volatility.
While other types of cryptocurrencies have come and gone, Bitcoin or BTC has grown and grown and is now worth thousands of dollars per coin. Even as other types of stocks and bonds seem to depreciate as the market changes, Bitcoin only seems to grow and become more valuable, especially in 2021 when it hit a new all time high. Like many investors both amateur and professional, owning Bitcoin seems like the best move to make.
But like most valuable objects or stocks, the overall value is only determined by how safe your Bitcoin storage will be. To safely store Bitcoin, you’ll want to make sure you understand several key features of the cryptocurrency and can store your Bitcoin in an online wallet or mobile wallet.
Whether you’re just getting started or you’ve been trading in Bitcoin since the beginning, there are some key features of Bitcoin desktop wallets or software wallets that will help you on your journey. We’ve gathered together some of the best Bitcoin wallets and storage devices for 2021 so you can keep your currency under wraps and continuing to grow. Digital currencies keep things safe so you don’t need to put your credit card on the line.
As we share more information about Bitcoin wallets, there are a few key things to be aware of including the difference between hot and cold wallets. Hot wallets are a less secure way to make transactions but the transactions are done quickly. Cold wallets are more secure and are designed for your cryptocurrency to stay put for a much longer-term.
Let’s get to the good stuff and check out the best way to store your crypto assets and digital assets without the fear of malware!
The 6 Best Bitcoin Wallets for 2021
These are the safest, most reliable and best Bitcoin wallets to use in 2021. Buy using the links below for additional savings.
This is our pick for the best Bitcoin wallet. If you have any cryptocurrency in your portfolio, we highly recommend buying a Ledger Nano X to keep your crypto safe and secure.
This is a second-generation wallet from Ledger which is a French company that has been in the crypto space for a few years. Their first product, the Ledger Nano S was one of the very first hardware wallets on the market and was on top of the space for quite a few years.
While many other Bitcoin wallets are located online, these hardware wallets are plugged into your computer. They look like a USB drive and connect to your device via USB or Bluetooth so you won’t need a specific Windows computer, Mac or Linux laptop all the time but you’ll be able to connect to your mobile device as well via Bluetooth.
Since it’s a hardware wallet, Ledger Nano X supports over 1,500 cryptocurrencies that continue to grow each year as users suggest their favorite cryptos. Ledger Nano X is a cold storage hardware wallet but there is a companion Ledger Live software that includes a user interface for all of your holdings.
The user interface allows all the users to add new wallets for different cryptocurrencies and manage their portfolios from the software. Hardware wallets remain some of the most popular in the industry. This Ledger program includes a USB Type-C cable so you can also connect with this method through a desktop computer. You can use the Bluetooth function to connect to a smartphone or tablet as well.
- Ledger Live is intuitive and has a convenient user interface
- Store up to 100 different apps simultaneously
- Bluetooth connectivity
- Bluetooth isn’t as smooth as it could be
- Can only store a few wallets simultaneously
If you’re looking for 2021’s best bitcoin crypto wallet, this is it.
This is another second-generation cold storage wallet that specializes in Bitcoin and many other cryptocurrencies. This functions much like Ledger but gives the users the ability to access third-party exchanges like Changelly and Shapeshift.
You can access these exchanges which is convenient but the price for this cold storage wallet is hard to justify for that feature alone. You’ll be able to utilize the touch screen with the Model T which is a big help to new users. There’s also a MicroSD slot so you can further encrypt the PIN and protect your device from attacks.
The Trezor Model T comes with the same USB Type-C cable so you can easily connect to your smartphone or laptop or desktop to access your storage wallet. There are 1,400 cryptocurrencies available through this wallet and is considered to be a bit more secure than the Ledger Nano X due to the lack of Bluetooth incorporated.
- Web-based user interface with the exchanges built-in for easy access
- Large list of supported cryptocurrencies
- Open-source with large amounts of community and customer support
- Unlimited number of wallets available simultaneously
- Price point is high for a hardware wallet
- Small touchscreen is difficult to type on
- Can be confusing for a first time user
This is the original hardware Bitcoin wallet and is the first generation wallet delivered by Ledger. Unlike later iterations of the Ledger wallet, this one does not include the USB Type-C cable so it may be difficult to connect it to newer age Android or iOS smartphones or tablets.
Much like the second generation Ledger Nano X, the Nano S supports the same list of cryptos and gives users access to the Ledger Live software. It doesn’t use Bluetooth and limits the number of wallets you can have simultaneously active on your overall device. The Nano S only supports 18 simultaneous wallets while the second generation stores up to 100.
If you need to make room to add another wallet with the Nano S, you can delete it off your hardware wallet and the information and Bitcoin will still be stored on the blockchain. To store your cryptocurrency safely at a very fair price, Nano S is a great place to get started. It’s simple to the user with the Ledger Live and as a beginner, the interface is easy to use and keep track of all of your wallets.
- Ledger Live is an easy user interface
- Secure storage at an affordable price
- Open-source for great customer and community support
- Only able to store 18 wallets simultaneously
- No wireless Bluetooth feature
Exodus is a simple, easy to use a crypto wallet that works great for beginners. The user interface is extremely simple and the exchange is built-in so your trades and purchases happen with ease while still protecting your Bitcoin address.
This hot wallet style storage device has become popular because it allows you to swap between a wide range of cryptocurrencies. There are over 100 cryptocurrencies offered on exchange and to swap on Exodus’ wallet app.
In addition to being simple to use, Exodus has an outstanding service team that can help give advice and consideration to new users who are just dipping their toes into the cryptocurrency market. What makes it excellent for beginners, can end up being a drag for advanced users though. Several more advanced features are lacking on Exodus’ mobile app or desktop programs.
Exodus is a closed source wallet that is in direct opposition to the very nature of Bitcoin being open source. The code isn’t open for everyone to see and some more advanced users have become concerned about security. Users are required to rely on the Exodus team instead of being able to research the code themselves.
There are options with the wallet to set custom fees to make sure that your transaction goes through quickly. All in all, this is a great place to start if you’re a beginner and need a little extra help learning the market.
- Wide range of cryptocurrencies, including Bitcoin Cash and Dash
- Built-in exchange for easy trading
- Excellent customer support
- Closed source software caused security concerns
If you want the original Bitcoin wallet this is it! Electrum has been around since 2011 and hasn’t changed much since its inception.
The user interface offers only the basics and is wholly dedicated to Bitcoin. But since it doesn’t have anything else to be distracting, Electrum does the Bitcoin wallet job to perfection. This is our choice for advanced users as the complex options can be much too overwhelming for new users and Bitcoin beginners.
While some hot wallets are closed source, Electrum is dedicated to the open-source concept and allows its users to set custom transaction fees. You can also choose between legacy Bitcoin and Segwit as well as choose the level of security you want to use for your wallet. The security levels allow you to use two-factor authentication, multi-signature wallets, or even elongate your seed phrase with custom words. These security features including your PIN code, QR code, and passphrase work within the operating system to protect your cryptocurrency wallet. You’re able to keep everything under your full control through the use of your keep key as well!
- Set custom transaction fees
- Higher levels of security than other hot wallets
- Ability to customize seed phrases
- Open source
- Most basic user interface
- Only works with Bitcoin
- No customer support
Most of us do everything on our phones and rarely touch a computer so having a mobile-friendly option that works on your tablet or phone is essential. Mycelium specializes in mobility and their app is mobile-only for a Bitcoin wallet.
Mycelium only supports Bitcoin instead of others like Ethereum (ETH) and Litecoin (LTC). There is a built-in exchange (similar to Binance and Coinbase) to the wallet so you can quickly move your cryptocurrencies around and get the trade you want. The refreshed user interface makes it easier to use than other types of Bitcoin wallets.
This is one of the earliest wallets to join the Bitcoin movement and you can also set custom transaction fees that help determine how long you end up waiting for the transaction to be complete.
There are a few extra features that make Mycelium stand out among its competitors including hardware wallet support. This wallet support allows you to keep the Bitcoin holdings in an offline storage device while still seeing their holdings through Mycelium’s user interface.
- Set custom transaction fees
- Ability to use hardware wallets to store Bitcoin holdings
- Open-source software for security
- Mobile only
- Only works with Bitcoin
What is a Bitcoin wallet?
Just like it helps you to stay organized to keep your coins and bills together in a physical billfold or wallet, a Bitcoin wallet helps to keep your Bitcoin information and digital cryptocurrencies safe together in a wallet. A Bitcoin wallet stores all your digital Bitcoin information and quickly validates your transactions while using the currency.
All of this information is kept secret by using a private key or seed which is then used to validate transactions and “sign” for them. This allows your Bitcoin to be used to make all of your purchases and can then be exchanged for another asset. This secret key or seed keeps others from using your Bitcoin or other people interfering with the transaction.
Many people refer to Bitcoin wallets and crypto exchanges interchangeably. The crypto exchanges are often part of the wallet interface and account features. The wallet then becomes a place to keep all of your cryptocurrencies and where you can keep any fiat money for future use. You can’t withdraw to your bank account from a wallet, and you can’t buy Bitcoin directly with a wallet either.
How does a Bitcoin wallet work?
Blockchain is a shared public ledger where all Bitcoin transactions happen from Bitcoin wallets. Through cryptocurrency exchanges, when a transaction occurs there is a transfer of value between one or more Bitcoin wallets.
When transactions happen, each Bitcoin wallet will use this secret data to sign and validate transactions. This signing proves that the buyer or seller is the owner of the wallet. This keeps each wallet safe with as much Bitcoin as you’d like without reaching any limit. For extra security, most people will take a copy of their own private keys and secret data on a piece of paper.
How much does a Bitcoin wallet cost?
If you’re just storing the Bitcoin in a wallet, most are free! But if you’re finishing up a transaction, the owner of the exchange or device that houses your wallet will end up charging you various fees. All of these fees depend on what you want to do.
If you choose to buy a wallet it can end up costing you upwards of $200. Using a wallet in conjunction with an exchange will have you paying a flat fee of only a few dollars or a percentage of each transaction value.
How do you choose the best Bitcoin wallet?
Each Bitcoin wallet on our list was evaluated based on security, costs, and customer reviews with security and safety being the biggest consideration. You want to be sure that any wallet you choose is well used and has lots of safety protocols in place to keep your investment safe.
Keep in mind that you also want to choose a wallet that will work with larger exchanges so you can make quick transactions.
A Bitcoin wallet will help you keep your investment safe and secure while your money does the hard work for you. Your wallet can be built for online or offline storage and you can tweak it to make sure it suits your needs!
The key to finding the best crypto wallet for your needs is to be sure you understand the interface and exchanges, find one that keeps your investment secure and allows you to work with the cryptocurrency of your choosing. While there are a few wallets that allow you to exchange your cryptocurrencies and work with many different kinds, a few only work with Bitcoin. Decide what works best for you and choose one accordingly!
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Via: The Observeby