To Bitcoin users, security is one of the top concerns when it comes to storing coins. This article will introduce to you the safest bitcoin wallet for each different use cases.
Reasons why you might need the safest bitcoin wallet
As the Bitcoin owners, you obviously never want your coins to get lost or stolen. However, that’s not the only reason causing safe bitcoin wallet to be essential.
When owning cryptocurrencies, you might face other risks of being scammed or hacked. Therefore, you need to store your assets in high-security storages with advanced features that prevent external attacks. In addition, secure crypto wallets help you manage your funds better when trading or making daily transactions.
Types of bitcoin wallets
Bitcoin wallets can be separated into two main types: hot and cold wallets.
Hot wallets are applications that could be installed on your mobiles or computers. These wallets come with great convenience and advanced features, yet don’t earn much credit for security level. They are the most popular choice for Bitcoin’s safekeeping as users can access them easily and without any cost.
Cold wallets are offline storages that keep your assets away from the Internet, thus, there is a lower chance for hacker attacks. However, these wallets often cost a certain price and don’t allow sending transactions, unless you connect them to the Internet or import private keys into online services.
Here are our top picks of safest bitcoin wallets for different uses:
Safest bitcoin wallet for long-term storage – Ledger Nano X
There’s nothing more perfect for holding than cold storage. As a hardware device, Ledger Nano X keeps your crypto assets offline and safe from security issues of online platforms.
Ledger Nano X is the first hardware wallet to have Bluetooth connectivity, which makes it easier to pair with any Android and iOS device. The encrypted dual chips create a secure environment inside the wallet, protecting your funds from the malware of the devices you connect to. Therefore, users won’t need to worry about the security risk of Bluetooth connection.
With a 24-word recovery phrase, users can create a PIN code and restore the funds on another device if the wallet is lost or stolen. Awesome, isn’t it? There is just a slight downside about this wallet: the lack of passphrase support. Overall, Ledger Nano X is still the safest bitcoin wallet in the form of a hardware device.
Safest bitcoin wallet for trading – Coinbase
Another reputable name in the list of safest bitcoin wallets is Coinbase. This is one of the easiest ways to buy, sell and store cryptocurrencies as Coinbase is integrated into its market. Furthermore, if you live in the US, you can even connect your bank account to the wallet to purchase bitcoins.
Coinbase offers 100% guarantee for your crypto assets since it allows you to set up 2-step verifications and store your coins in “vaults” for an additional security layer. Another advantage of Coinbase is that it’s super user-friendly, especially to beginners. The user experience within the exchange and wallet is simplified to ensure anyone could understand how to operate it and avoid making mistakes that result in loss of fund.
However, at the moment, Coinbase has yet to support many cryptocurrencies. It now only accepts Bitcoin, Ethereum, Bitcoin Cash and Litecoin, which might be a problem for some users.
Safest bitcoin wallet for anonymous transactions – Incognito Wallet
If you look to send and buy crypto anonymously, Incognito Wallet is one of the top picks. With an “Incognito” mode, this wallet allows you to keep your funds and transactions completely private. Therefore, no one can view the account balance and try to steal your assets.
Incognito is a sidechain for privacy coins, which connects with Bitcoin blockchain via a trustless portal. To optimise users’ privacy and security, Incognito uses trustless custodians and smart contracts to issue privacy tokens of different cryptocurrencies, including Bitcoin, at a rate of 1:1. After obtaining these coins, users can send or store them with anonymity. The privacy coins can also be switched back to normal with no involvement of a third party.
Incognito Wallet supports a wide range of cryptocurrencies and allows you to send bitcoins As a result, Incognito is considered the safest Bitcoin wallet for privacy-conscious users.
Incognito is now available to download on Android and iOS.
Safest bitcoin wallet for desktop use – Electrum
Electrum is one of the most well-known software wallets that focuses solely on Bitcoin. When using Electrum, your coins will be stored in a set of encrypted files on your laptop or PC and kept offline, which means that you cannot make any transactions but your fund would benefit from a greater level of security.
Electrum is compatible with Windows, MacOS and Linux. It also has various features that optimise security such as the recovery process, two-factor authentication or multisig functionality, a feature requiring multiple signatures before validating transactions.
Moreover, this wallet can be integrated with hardware devices, allowing users to monitor their balance on the hardware wallets and accept transactions via QR codes. As an open-source project, Electrum has numerous developers contribute to and assess the security of the wallet.
Tips to keep your wallet more secure
You have learnt that security is very important with Bitcoin users. So here are some tips to improve the safety of your Bitcoin wallets:
- Use a secure Internet connection: Public networks may expose users to security issues. If you store your assets on a desktop wallet, try to use your personal hotspot to protect your funds from hacker attacks.
- Have a separate wallet for regular transactions: If you use bitcoin for daily purchase, the best practice is to keep a separate wallet with enough amount in it. The rest of your assets should stay safe and sound in a highly secure place like a cold wallet.
- Do not access unknown or suspicious links: Beware when using web-based wallets as you may encounter clone websites that look identical to the authentic one. Also, look out for Bitcoin scam emails. If you’re not sure about a link, just don’t click on it.
- Double-check the Bitcoin address: When making transactions, ensure you send them to the right address. There are malware programs that can intervene in your activity and change the receiving address when you copy and paste.
Final words on “Safest bitcoin wallet”
Eventually, you are the one who knows most about your needs and wants when it comes to storing bitcoins. Thus, all these reviews and tips are just for reference. After reading this article, consider carefully what method works best for you and how you can use it to maximize the security of your asset.