Unlike traditional currencies, Bitcoin is a digital currency, which is used and distributed electronically. When it comes to purchasing and storing such a currency, the perspective and approach is completely different. As we know, Bitcoins don’t exist in any physical appearance or form so technically they can’t be physically stored. As an alternative, a private key is used to access your public bitcoin address, which also allows for secure transactions. A Bitcoin transaction is possible by the incorporation of the recipient’s public key and the sender’s private key.
Bitcoin – even well below previous highs – is one of the hottest resources ever. Once valued at 6 cents in 2010, Bitcoin has grown to peak at 9,300 in 2017. If you currently own this cryptocurrency, or is considering to acquire a few, you’ll need to find the best Bitcoin wallet you can to store this digital asset.
Digital wallets are the place that digital currencies live. In addition, I think one needs to search for the best accompanying features when choosing a reliable Bitcoin wallet, regardless of whether it is software or a hardware wallet:
- Control private keys – A wallet where you possess and control your keys.
- Backup & security features – A wallet that seed backup keys and pin codes.
- Developer community – It has an active community of developers for consistent and reliable maintenance.
- Ease of use – A wallet that has elegant UI for easy and fast use.
- Compatibility – A wallet that is compatible on various operating systems.
Now that you know what to search for in a Bitcoin wallet, there are several exclusive types of Bitcoin wallet catering for different necessities and varying in terms of safety and protection, convenience, accessibility and so on. So, with blockchain technology here to stay, what is the highest-rated Bitcoin wallet for 2018 and beyond? With significance on safety and security, here are the top three crypto wallet types.
Paper wallet or other cold storage:
A paper wallet is essentially a document that contains all the data you have to produce the bitcoin private keys you require. It regularly appears on paper in the form of a QR code that can be used to gain access to a wallet at will. By storing your bitcoin offline, confiding in nothing and nobody except for yourself, and providing that you have all the information to control and access your bitcoin, you’re using the most unassailable “cold storage” technique out there.
The primary advantage of a paper wallet is that the keys are not stored anywhere digitally, which makes it totally safe from: programmer/hacker attack; malware that can log the user’s keystrokes; and fundamentally, any type of digital robbery. However, there are still a few safety measures to consider while creating a paper wallet. Clearly, before creating the wallet you should ensure that you do so in privacy. Also, to rule out the possibility of any spyware checking your activities, it is advised to utilize a secure operating system, for example, Ubuntu, running from a USB streak drive or DVD. Moreover, once the paper wallet is set up, the website code ought to have the capacity to run offline, which enables you to disconnect from the Internet before really creating the keys. And lastly, utilize a printer that isn’t associated with a network.
Hardware wallets/dongles (Ledger or Trezor):
When you begin to consider using hardware equipment storage solutions for your digital money, you know you’ve quit fooling around. These dongles build the best bitcoin wallet due to their security and versatility. Because of their high level of securely, they are usually recommended for professional financial investors.
Unlike paper wallets, which must be introduce to software sooner or later, hardware equipment wallets can be utilized safely and intelligently. They are safe from computer viruses, as the assets or funds stored can’t be exchanged out of the device in plaintext, and in many cases, their software is open source.
Software wallet (Electrum, Blockchain Info & Exchange Wallets):
Software wallets allow you to store your bitcoin using a digital wallet. An example of this would be Electrum. Electrum is a popular software wallet that offers free storage option in the bitcoin network community, and is one of the most regarded all around desktop storage app out there. It’s been around since 2011 and provides its users with mobile access, with the exception of Apple iPhone clients who are not able to use application because of it’s unfortunate huge endorsement by Android.
Blockchain.info is another example of software wallets. It is a standout amongst the most well known crypto wallets available. With in excess of 24 million enlisted private wallets, 160,000 every day exchanges and 140 nations where it is in services, it is undoubtedly one of the best out there.
And lastly, Coinbase, the most popular cryptocurrency exchange in the world, also provides an example of bitcoin software wallets. You can buy, sell or trade bitcoin on the platform, as well as store your bitcoin in a wallet there.
In general, numerous online software wallets and online trading platforms do not give you extreme control of your private key, which introduces an additional layer of risk. You have to both trust the service provider, and also trust that their servers won’t be hacked, as that could compromise your wallet access or the stored digital asset itself.
Featured image source: Pixabay
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