Best Wallets To Store Bitcoin Securely

secure bitcoin

The seemingly unstoppable surge the cryptocurrency industry is experiencing this year comes with its own kinds of challenges. This article goes into the different methods of storing Bitcoin securely.

secure bitcoin

Best Bitcoin Wallets

 

Before we list the Best Bitcoin Wallets and safest methods you should use for storage, there are many options out there and some offer a lot less security than others. We will cover some essential security tips you should consider before choosing a wallet or storage option.

 

  • Use an open-source wallet which is widely used and highly regarded by the cryptocurrency community, after all, we are not all security researchers.
  • Always generate a new wallet key-pair offline and on a trusted device of your own with anti-virus and basic security measures.
  • Use a wallet which allows you to create a password protected & encrypted back-up of your private key.
  • Create a secure password and store your back-up in multiple locations never relying on one device which may go missing or fail.
  • Do not use the same password for your wallet you may have used with any other service.
  • Explore multi-sig options, this requires two signers for the transaction to be broadcast.

 

Bitcoin Storage Methods

 

Security concerns should be at the top of mind when thinking about which Bitcoin Storage Methods to choose. With Bitcoin you are your own bank, there are no chargebacks or reversals when things go wrong so it is important how to keep control of your own wallet and prevent loss.

 

Cryptocurrency users especially those with the most value such as Bitcoin find it increasingly harder to sleep soundly when they worry about their digital assets being whisked away by a criminal behind a keyboard from thousands of miles away. Keeping Bitcoin safe is the sole responsibility of its holder, as no bank will keep it for you due to the fact that it is a stateless currency which was never issued by any Central Bank in the world. Bitcoin, in general, is stored by its owner using what are known as wallets.

 

These are a variation of either hardware or software that are highly encrypted and bear coded addresses with which the user sends, receives, and stores their crypto holdings. When it comes to choosing a mode of storage for your Bitcoin, you have quite a number of options, perhaps the best option is to use a combination of different wallet types to serve different purposes. You could use a cold storage or hardware wallet option for larger amounts, long-term storage or savings. A mobile wallet such as Mycelium could be used as a transactional account for regular and smaller amounts.

 

Cold Storage

 

Cold storage is simply a private and public key pair which is kept completely offline by the Bitcoin holder. The fact that the wallet is isolated from the rest of the world makes it pretty impossible for hackers to reach it or do any harm to your Bitcoin holdings.

 

Bitcoin is the currency of the internet and as such it requires an internet connection to participate in the network and transact. For this reason, the best method to ensure that your holdings are never transacted is to keep control of your own private key and remove it from the internet. This will ensure your private key is never exposed and to minimize the risk to be discovered. When storing cryptocurrency on an exchange or online hosted wallet solution, you are entrusting the service to never expose the key and safeguard it on your behalf.

 

Software Wallets

 

Not commonly regarded as the most secure method to store crypto, the security of your software wallet relies on the user to ensure that appropriate measures are taken to prevent a breach. Software wallets can, in fact, be a very secure method of storing your cryptocurrencies when done correctly.

 

Firstly, it is not advised to store cryptocurrencies on an online exchange or otherwise online hosted wallet solution, you are relying on the service to never expose the private key, online wallets are constantly connected to the internet and have a much higher chance of being penetrated.

 

Best Bitcoin Wallet Software

 

Mobile

Android & iOs

 

Desktop PC

Windows, Linux, Mac

 

Online Wallets

Web-based

 

Mycelium

Secure Bitcoin Wallet

Open Source

iOs and Android

Encrypted wallet generation

Website

 

Armoury

Armory wallet

Open Source

Windows, Mac and Linux

Multi-signature

Website

 

Spectrocoin

spectrocoin

Exchange & wallet

Easy to Use

Android & iOs App

Website

 

Electrum

Electrum

Open Source

iOs and Android

Encrypted wallet generation

Website

 

Exodus

best bitcoin wallet

Easy to Use UI

Multi-Cryptocurrency

Partially Open-Source

Website

 

Green Address

Green Address

Open Source

Centralized Approvals

Multi-Signature

Website

 

Jaxx

Multi-cryptocurrency wallet

Supports 50+ Cryptos

iOs and Android

Data not stored on servers

Website

Electrum

Desktop Wallet

Open Source

iOs and Android

Multi-Signature

Website

Blockchain.com

Bitcoin Wallet

Long Standing

Bitcoin & Ethereum

Easy-to-Use

Website

 

Hardware Wallets

 

This is considered to be the easiest, yet very secure method, of storing your Bitcoin. Hardware wallets are specialized portable devices that were designed specifically for the storage of Bitcoin and some other cryptocurrencies as well. It is designed for those who want a secure vault-like facility to keep their digital assets safe and away from the reach of hackers.

Ledger Nano S - The secure hardware wallet

Hardware wallets are big on security and usually have multiple layers of cover to frustrate any attempt by criminals to reach your private key. Hardware Wallets are mostly kept completely offline and are not designed for making everyday transactions. A hardware wallet is a combination of cold-storage and software storage solutions. Their high security, however, comes at a cost, as they are usually priced in the range of R1500 to R4000.

 

Best Hardware Wallets

 

With so many options out there these days, the longest standing and most popular hardware wallets are often the best choices. There is a reason why they are successful and have managed to stay in the spotlight. The longer a wallet has been proven in the wild, the more certain we can be that it has been thoroughly poked and prodded for vulnerabilities.

 

Ledger

latest hardware wallet

Trezor

Best Hardware Wallet

Supports More CoinsLarger display Screen
Compact sizeAdvanced Software
 

Cost ~ R1500

Website

 

Cost ~ R1500

Website

 

 

Paper Wallets

 

Paper wallets are a commonly used method of cold-storage for cryptocurrencies, they are a cheap and often secure method of storing Bitcoin Wallets for long-term.  The simplicity of this kind of storage belies its extremely secure nature which makes it among the most popular ways Bitcoin users keep their assets. To put it simply a paper wallet is a printed or written down private key and public key pair. The private key is all that is needed for a bad-actor to run away with your hard-earned crypto.

 

A paper wallet is a kind of Bitcoin Wallet in which amounts of Bitcoin are printed in the form of QR Code on sheets of paper which are then stored by the user in a safe, vault or otherwise secret place. It is completely cut-off from the digital universe where the threat to Bitcoin abides. The genius in paper wallets is that it mimics paper money and it is absolutely impossible for a hacker to reach it unless someone comes and physically remove it from where you stored them.

 

When using paper wallets you should take every precaution to ensure that your holdings have little chance of being stolen, discovered or destroyed. One such way to do this is by use password protected, BIP-38 or otherwise encrypted methods to create the wallet. With it being encrypted using a secure password you will feel more comfortable to make and store multiple copies in multiple secure locations.

 

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