There are over 200 million bitcoin wallets available in the market. This certainly raises the question, which is the best and most trustworthy bitcoin wallet. Bitcoin wallets come in all shapes and sizes. We have seen several people lose their wallet balances to security loopholes and inefficiencies.
There is no dearth of bitcoin wallets out there, but there is, however, a lack of good bitcoin wallets. So, in this article, we will find out how to boil down to choosing a trustworthy bitcoin wallet.
First, Decide on the Type of Bitcoin Wallet you Need
So, there are two major types of bitcoin wallets;
- Hot Wallet: These are online wallets that will keep you connected to the internet all the time. Plus, with a hot wallet, you can conduct quick transactions like selling and buying bitcoins almost instantly and from anywhere. However, there is always a risk factor involved with an online wallet.
- Cold Wallet: A cold wallet means storing bitcoin in offline storage tools. These include hardware wallets like Ledger, Trezor, etc. These offline wallets are highly secure and disconnected from the internet. However, you must always make sure that they are stored securely and do not give in to climatic anomalies.
With this main distinction understood, let’s identify the factors to consider when choosing a trustworthy bitcoin wallet.
Choosing a Trustworthy Bitcoin Wallet – 4 Factors
1. Ease of Use
Since bitcoin is a new technology and system for several users. Plus, there is a lot of uncertainty involved here due to the market volatility, which makes understanding the complete picture a bit difficult.
Keeping this in mind, choose a wallet that makes your work easier. In other words, use a bitcoin wallet that is easy to use in that its features are easy to understand and locate. Make sure to check some reviews on the web regarding this point before downloading any wallet.
Always use a secure wallet to store your bitcoin balance. A secure wallet will have the following systems;
- Private key
- 2-Factor Authentication
- Passwords secured with 256-bit hashing
These systems ensure that your password and wallet is inaccessible. Plus, the private key is something you will store personally by writing it down in a notebook or saving it in the phone memory. In any case, hackers will find it difficult to access the private key, without which they cannot access the wallet bitcoin balance.
3. Instant Transactions
Due to the volatility associated with bitcoin and other cryptocurrencies, a wallet allowing instant transactions is important. At times, you might need to sell the crypto balance instantly or buy crypto from the market quickly. For this, use a wallet that has this option and allows you to buy and sell securely.
Lastly, choose a wallet that is compatible with different types of devices and platforms. This includes a smartphone, laptop, tablet, etc. and in this, the wallet can be downloaded on an iOS and Android device or work on a commonly used web browser like Google Chrome, Mozilla, Edge, etc.
Bitcoin is one of the highest-priced cryptocurrencies and is hailed as the most stable currency. A trustworthy bitcoin wallet is highly secure and has an intuitive interface. Plus, it must be compatible with different devices and operating systems while allowing users to conduct transactions instantly.
With the rise of cryptocurrencies, we can expect more relevant features to be added into the wallets and further enhance the user experience. For now, make sure to choose a wallet that serves your purpose and keeps your balance secure.