It’s hard to know where to begin with cryptocurrencies, so check out this guide and we’ll introduce the best private crypto wallet available on the market.
WHAT IS A CRYPTOCURRENCY WALLET?
Before we find out about the best private crypto wallets, we should explain exactly what one is.
Basically, a cryptocurrency wallet can be defined as a secure digital wallet you can use to store, receive, and send digital assets.
In any case, you need to have one of these wallets in order to hold cryptocurrencies. They interact with different Blockchain ecosystems so that users can receive and send digital currency, monitor their balance, and so on.
The blockchains generally store the coins themselves, as well as information on the distribution of digital assets between users and ever addresses’ transaction history. All of this information cannot be changed or erased in any way unless someone completely eliminates the internet in its entirety.
You cannot manage your assets without a wallet. Unlike with fiat coins, which can be obtained from the hands of financial institutions or ATMs, payments with virtual coins are made only on the network. Therefore, your choice of crypto wallet should be approached with the utmost seriousness and consideration.
In the next paragraph, we will explain how a cryptocurrency wallet actually works and what is the best private crypto wallet to store your Bitcoin, Ether and other altcoins in.
HOW DO CRYPTO WALLETS WORK?
Cryptocurrency wallets are different from physical ones because you can do more with them than just store money. One big difference is that crypto wallets are used for storing public and private keys.
Crypto wallets with private keys are particularly secure as the key acts somewhat like the PIN you use to access your bank account. Public keys, on the other hand, can be thought of as being more like your bank account number.
When you decide to send Bitcoin, what you’re doing is effectively transferring ownership of your coin from your wallet to that of the recipient’s. For the recipient to be able to access the Bitcoin you transfer, their private key needs to match the public address you sent the Bitcoin to.
Owning private keys gives you total control over your funds. This is why it is essential that your private keys are kept secret and only you know what they are.
You should also keep back-ups of these private keys – just in case you accidentally lose them.
CAN BITCOIN TRANSACTIONS BE TRACKED?
The answer is yes, unless you take the proper measures. However, true privacy isn’t possible with Bitcoin as it is a permissionless protocol.
All bitcoin transactions are public, traceable, and permanently recorded in the Bitcoin network associated with the transacting bitcoin address. Bitcoin addresses are created privately by each user and are the only information publicly associated with transactions. Once an address is used, that transaction is recorded on its corresponding blockchain. From then on, the entire history of all transactions made will be visible as well.
Anyone can view the transaction history of any public address and since the address has to be revealed to complete a transaction, full anonymity is not possible. It’s not easy to send bitcoin anonymously. Transactions are instead pseudonymous, meaning that while identities aren’t completely hidden, they are obscured to the public as true identity of the address owner isn’t explicitly known. If worst comes to worst and the true identity of an address holder is revealed, everything about the owner’s history on that address becomes public knowledge.
Wait, is there a best private crypto wallet out there where I can store my coins more safely? Thankfully, there are. Let’s take a look at the best available options.
THE 4 BEST PRIVATE CRYPTO WALLETS RIGHT NOW
Since the list of options has grown over the past few years, you need to consider how you intend to use your cryptocurrency wallet before you pick one. The following are some of the best in the marketplace today:
Ledger Nano X – secure hardware wallets
Ledger produces hardware wallets that are specially designed for privacy-centric users. There are two models, the Nano S & Nano X, that both connect to your computer via USB and they are used for storing your digital assets offline – the safest place they can be.
They are also non-custodial wallets, which means that you are the one who controls your private keys. In addition, the Ledger Nano X can also be used as a reliable anonymous BTC wallet. To be even safer, obscure your ISP by using a VPN whenever you make a transaction.
- Hidden Wallets: Hidden wallet data is indistinguishable from random bytes – only YOU can know they are there.
- 24-word mnemonic backups enable recovery of all funds if your Ledger Nano X is ever lost or stolen.
- HD wallet provides over 100 wallets, each of which can generate millions of unique addresses.
In the future, you can expect more anonymous features to be available on the Ledger Nano X, which is yet another reason why it’s on the best private crypto wallet list.
2. Incognito – best private crypto wallet of all time
If you’re looking to send bitcoin without anyone knowing about it, then the easiest way is certainly by using the Incognito wallet.
Incognito’s privacy sidechain can be attached to any Blockchain and runs parallel to them in order to allow its users to conduct confidential asset transfers. This allows for secure two-way transfers of crypto assets whenever privacy is needed.
Incognito and its team have helped redefine the idea of privacy in the digital world. They are one of the best services that allows you to buy cryptocurrency without verification.
Most people are not comfortable with the idea of letting the world know how much BTC or ETH they are have or if they have just bought some USDT or not. Incognito’s solution creates privacy for users while not losing the the core principle of transparency on the blockchain.
The Incognito network maintains a ledger and records all transactions to ensure transparency, but to ensure privacy, every trade or transfer using private mode will not have the amount, sender or receive visible. This is done through clever utilization of zero knowledge proof technology.
The Incognito wallet is optimized for mobile and is available for both iOS and Android, as well as having a Chrome extension. Users hold their own keys and sign all transactions locally. The zero-knowledge proof generation system, as previously mentioned, has been implemented on the client side, resulting in a fast, secure, privacy-first experience. Users can also run their own nodes to earn block rewards and issue their own privacy coins easily.
You also have the ability to store, buy and send Bitcoin anonymously. No one can view your balance or track your activity, as you can turn all your coins into privacy versions. This is the absolute best-in-class privacy solution and an unbeatable crypto wallet with a private key. Speaking of the best private crypto wallet, speaking of Incognito wallet!
3. Pint wallet – mobile wallet
PINT is a wallet that is highly intuitive when it comes to receiving, selling and holding blockchain assets such as Ether, Dogecoin, Dash, Litecoin, Bitcoin Cash and Bitcoin itself.
It is also a self-hosted wallet where you control your crypto wallet private key by backing-up the seed with you. If you are hardly finding out a best private crypto wallet to use, don’t hesitate to try Pint wallet out!
Intuitive and easy to use, PINT comes with anti-theft functionality where you can remotely delete the wallet if your mobile device is lost or stolen.
PINT has made the storing, buying and selling of your digital assets simple, secure, easy and cheap. All transactions on the platform are secured with AES 256 encryption and you can enjoy using the fully-ciphered PINT for all your crypto custody and trade on your mobile, whenever you want.
Another great benefit of PINT is that you do not need to disclose any personal, identifiable information like your phone number or email.
4. Samourai Wallet – one of the best private crypto wallet to use
Samourai wallet is a modern, encrypted mobile wallet that also uses the aforementioned AES-256 encryption, so never communicates with any servers away from your mobile device. Apart from that, you get sturdy safety options like a PIN code and seed word backup, so you can store your funds safely.
- Samourai prevents the unintentional reusing of addresses by sending you a warning if you have sent to an address before.
- Samourai has designed a system where transactions are far harder to track. Using higher entropy, it’s a lot harder to link the inputs and outputs of transactions, and also cluster wallet addresses and the metadata that comes with them.
- The wallet is Tor and VPN enabled, permitting you to route all transactions through an anonymous Information Processing address.
In conclusion, there are many options when it comes to cryptocurrency wallets. In order to find the best one for you, consider the points mentioned above and prioritize the features that suit your needs best. Best of luck in finding the perfect one for you; it’ll definitely be one of the above!