The Best Bitcoin Wallets in 2024
If you’ve got any cryptocurrency at all, you’ve probably got some Bitcoin. But did you know that choosing a Bitcoin wallet might be more difficult than it seems? Essentially, choosing the best Bitcoin wallet for you depends on your needs and level of experience. Put simply, not all crypto wallets are compatible with every asset or chain within the Bitcoin ecosystem.
Beyond that, different Bitcoin wallets have different security features too. For example, hot wallets come with risks since they’re connected to the internet. Hardware wallets, on the other hand, keep private keys much more secure, but they might not offer support for more experimental assets and chains.
If you’re feeling a bit overwhelmed by all the choices out there, don’t worry! Whether you’re looking for something super secure or just easy to use, this list will take you through all of the features to compare so you can make an informed decision. And of course, if you need a refresher, check out the article on what a Bitcoin wallet is to get started.
So, are you ready to find the best Bitcoin wallet for you? Let’s dive in.
6 Best Bitcoin Hot Wallets
Hot (software) wallets operate via software on your computer or smartphone. This is very handy and inexpensive, and thus software wallets are typically most beginner’s first crypto wallet. There are a range of Bitcoin hot wallets available: some just allow you to manage Bitcoin and others offer support for alternative Bitcoin assets and layer 2 chains.
Of course, it’s important to note that all hot wallets share a weakness: where they store your private keys. Hot wallets store private keys on their host devices, i.e. your laptop or smartphone. These internet-connected devices are vulnerable to hacking. Thus, you should never store large amounts of crypto with a hot wallet. Otherwise, a great option is connecting it to a hardware wallet to get the best of both worlds. If that’s the functionality you need, pay attention to which of the following software (hot) wallets are compatible with hardware wallets.
So now you know about all hot wallets, let’s look at the best bitcoin versions available.
Leather Wallet
Formerly known as Hiro, Leather was originally released in December 2018. Leather is essentially a non-custodial software (hot) wallet for BTC and alternative Bitcoin assets.
Today, it’s probably the most popular crypto wallet for managing alternative Bitcoin assets such as Ordinals, BRC-20 tokens, and stamps. But of course, you can also use Leather to deposit, view, create, trade, and transfer assets on the Bitcoin mainnet. It also supports Bitcoin layer 2 chain Stacks, with support for the Lightning network coming soon.
Beyond these core use cases, Leather also has another important feature: support for Ledger hardware wallets! In short, Leather connects with Ledger devices giving you the best of both worlds: the security of a hardware wallet and the convenience of a software wallet
Leather Wallet Review
| Bitcoin wallet | Type | Self custody | compatible hardware | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | Browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
Leather Wallet  | Hot Wallet | Yes | Yes | FREE | Ordinals, Stacks, Runes, Stamps, BNS, BRC-20, SRC-20 | Stacks | No | Requires an account on exchanges | Yes (not compatible with hardware wallets) | Yes (only BTC and STX) | Yes |
Leather Wallet Pros and Cons
| Pros | cons |
| ✅ Supports alternative Bitcoin assets such as Bitcoin ordinals and Stamps | ❌Doesn’t offer support for any assets or chains outside the BTC ecosystem |
| ✅ Offers an option to connect to a hardware wallet to keep your assets safe. | ❌The mobile app is not compatible with hardware wallets |
| ✅ Also supports Bitcoin Layer 2 Stacks, with Lightning network coming soon | ❌The desktop version doesn’t support ordinals or stamps |
Sparrow Wallet
Sparrow Wallet is a Bitcoin wallet with a focus on security and usability. It can operate both online and offline, depending on how you set up your crypto wallet. While it is a software wallet, it offers some options for those who want to set up cold wallets and create air-gapped wallets too. Beyond that, it also allows you to coordinate multi-sig wallets and manage Bitcoin ordinals. It also offers a built-in blockchain explorer feature, allowing you to track transactions. Importantly, it’s compatible with your Ledger hardware wallet, meaning you can guarantee the private keys to your accounts stay offline.
In short, Sparrow wallet is great for those with experience in the Bitcoin blockchain: it offers a range of complex features and advanced functionality. However, if you’re a beginner, you may want to opt for a Bitcoin wallet with more intuitive features.
Sparrow Wallet Review
| Bitcoin wallet | Type | Self custody | compatible hardware | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | Browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
Sparrow Wallet  | Hot Wallet | Yes | Yes | FREE | Ordinals | No | No | No | No | Yes (with built-in block explorer) | No |
Sparrow Wallet Pros and Cons
| Pros | cons |
| ✅ Offers support for managing Bitcoin Ordinals | ❌ Not user-friendly: complex for beginners to use |
| ✅ Is very secure: offers multiple options for creating cold and air-gapped accounts | ❌Doesn’t support any other networks other than Bitcoin |
| ✅ Compatible with Ledger Hardware wallets | ❌Doesn’t offer mobile or browser versions |
Exodus Wallet
Exodus wallet is a versatile hot wallet that allows you to manage assets on a range of networks, not just Bitcoin. Since it launched in 2016, it’s had ample time to develop its security features and introduce a wide range of features. For example, it has a choice of on-ramping providers and it’s also suitable for managing NFTs and connecting to dapps on alternative networks.
That said, it doesn’t support many alternative Bitcoin assets or layer 2s. While you can’t use Exodus wallet to manage Bitcoin ordinals, it does allow you to access Lightning, a Bitcoin layer 2 chain. While it is compatible with one hardware wallet brand, it’s not compatible with any others. All in all, Exodus crypto wallet is a good choice for those limited by a specific operating system but less suitable for managing alternative assets or large holdings securely.
Exodus Wallet Review
| Bitcoin wallet | Type | Self custody | compatible hardware | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | Browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Exodus Wallet | Hot Wallet | Yes | Yes (Trezor only) | FREE | No | Lightning | ETH, SOL, ADA, DOT, ATOM, and many more | Yes (Ramp, Moonpay) | Yes (iOS Android) | Yes (Windows, Mac OSX, Linux) | Yes (Chrome, Brave) |
Exodus Wallet Pros and Cons
| Pros | cons |
| ✅ Is compatible with many browsers, computer operative systems and smartphones. | ❌Doesn’t support alternative Bitcoin assets such as Bitcoin Ordinals |
| ✅ Offers on-ramping via different providers | ❌Isn’t compatible with many hardware wallets |
| ✅ Supports the Lightning network (a popular layer 2 Bitcoin chain) | ❌Stores private keys on the host device, thus is vulnerable to hacking |
Zengo Wallet
Zengo wallet is a consumer-style crypto wallet that allows you to secure Bitcoin without worrying about seed phrases or private key management. It’s still non-custodial, meaning you’re the only one that can access your wallet address. However, instead of private key cryptography, Zengo uses another cryptographic mechanism called multi-party computation (MPC). This mitigates some of the hacking risks associated with software wallets.
Zengo also offers an on-ramping feature, allowing you to buy and sell crypto. Plus, for an extra fee, you can also access tools that help you protect yourself from crypto thefts. They even have a service that lets you decide what happens to your account after you pass away. However, it’s important to note that Zengo is not compatible with any hardware wallet. It’s also only available in a mobile version: there’s no browser or desktop version.
Zengo Wallet Review
| Bitcoin wallet | Type | Self custody | compatible hardware | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | Browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Zengo | Hot Wallet | Yes | No | FREE | No | No | ETH, DOGE, MATIC, XTZ | Yes | Yes | No | No |
Zengo Wallet Pros and Cons
| Pros | cons |
| ✅ Has a built-in feature for buying and selling crypto | ❌Doesn’t support any Bitcoin layer 2s or alternative assets |
| ✅ Doesn’t require you to store and protect your own seed phrase while still being non-custodial | ❌Only comes as a mobile app |
| ✅ Offers a service allowing you to give your crypto to family or friends if you pass away | ❌Doesn’t support many networks outside the Bitcoin ecosystem |
Coinbase Wallet
Coinbase wallet is a hot wallet (software wallet) created by centralized exchange Coinbase. Don’t confuse it with a custodial wallet though, it does allow you to manage your private keys yourself. Beyond that, it also supports a range of popular networks including Ethereum, Solana, and Doge. And although it’s not possible to on-ramp via this crypto wallet directly, you can link it to a Coinbase custodial account to buy and sell crypto.
Coinbase’s self-custody wallet comes in two main types: a mobile wallet and an extension wallet. The mobile wallet is available on iOS and Android, whereas the extension version is available on Chrome and Brave browsers. You can also connect it to a Ledger hardware wallet for the best security experience.
Coinbase Wallet Review
| Bitcoin wallet | Type | Self custody | compatible hardware | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | Browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
Coinbase Wallet  | Hot Wallet | Yes | Yes (Ledger only) | FREE | No | Lightning | ETH, DOGE, XRP, SOL and many more | Only possible if you link it to a Coinbase custodial account | Yes | No | Yes |
Coinbase Wallet Pros and Cons
| Pros | cons |
| ✅ Compatible with hardware wallets (Ledger only) | ❌Doesn’t offer on-ramping without connecting to a custodial wallet |
| ✅ Supports a range of networks outside the Bitcoin ecosystem | ❌Doesn’t support alternative Bitcoin assets like Bitcoin ordinals |
| ✅ Allows you to access the Lightning Network (Bitcoin L2) | ❌Does not offer a desktop version |
Guarda Wallet
Guarda Wallet is a hot wallet for Bitcoin and over 50 other leading blockchains including SOL, BTC, ADA, Tezos, and many many more. It’s available in two versions: a desktop or a mobile app version. Its desktop version stands out for being compatible with a range of operating systems, from Windows to iOS, to Linux. While it doesn’t offer a browser version, it does have an online web wallet.
Guarda Wallet also has an on-ramping feature, allowing you to buy your favorite cryptocurrencies directly through the crypto wallet’s interface. Then its unique selling point is its crypto visa debit card, allowing you to pay with crypto anywhere you like. Its only pitfall is that Guarda Wallet does not support any Bitcoin layer 2 chains or alternative assets.
Guarda Wallet Review
| Bitcoin wallet | Type | Self custody | compatible hardware | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | Browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Guarda | Hot Wallet | Yes | Yes (Ledger only) | FREE | No | No | ETH, SOL, ADA, DOT, ATOM, and many more | Yes (SEPA) | Yes | Yes | No (But does offer an online web wallet) |
Guarda Wallet Pros and Cons
| Pros | cons |
| ✅ Compatible with hardware wallets (Ledger only) | ❌Doesn’t offer support for alternative Bitcoin assets such as Ordinals or stamps |
| ✅ Supports a large range of networks outside the Bitcoin ecosystem | ❌Doesn’t offer a browser extension version |
| ✅ Offers a crypto visa debit card | ❌Does not offer a desktop version |
4 Best Bitcoin Hardware and Cold Wallets
To make sure your Bitcoin is secure, you’ll want to use a cold wallet or a hardware wallet. Both of these Bitcoin wallets store your private keys offline. To explain, since hot wallets store private keys on their host devices, they are vulnerable to malware and spyware that could be lurking on your laptop or smartphone. Cold wallets, i.e. crypto wallets that store private keys offline, keep your keys away from these threats. Cold wallets come in many forms, such as paper or sound wallets, but the most popular way to set up a cold wallet is using a hardware wallet.
Hardware wallets keep your private keys stored in a chip offline—and the security of that chip is very important. But it’s not just the chip you need to worry about. An effective hardware wallet will also have security measures to mitigate risks of physical access and hacks. Plus, the features they offer may impact whether they truly operate as a cold wallet or not.
Finally, hardware wallets are physical devices, and thus you will need to pay for them. As physical devices, their features can vary radically. So, now you know what to look for in hardware and cold wallets, let’s look at the most popular devices.
Ledger Nano X
The Ledger Nano X is a hardware wallet perfect for managing your Bitcoin. It’s highly versatile, offering support for most major cryptocurrencies including Solana, Tezos, and Cosmos. Within the Bitcoin ecosystem, Ledger devices also support several Bitcoin layer 2 networks, such as Lightning and Stacks. While it doesn’t offer native support, it’s possible to manage alternative Bitcoin assets such as Bitcoin ordinals and stamps with a Ledger device via a third-party crypto wallet interface such as Sparrow or Leather. And of course, that’s easy, as Ledger devices are compatible with a range of Bitcoin software wallets.
Additionally, Ledger devices all benefit from an HD structure. This means you can generate a near-infinite number of accounts and manage them with the same interface. That means you can manage your cold wallet, your Stacks wallet, and your Lightning account all from the same device.
Ledger devices are industry-leading hardware wallets due to their security model. They offer a secure element chip, the same computer chip used for bank cards and passports coupled with its direct connection to the Trusted Display. These pieces guarantee that no hacker can access your crypto online or physically. To ensure the effectiveness of these security measures, Ledger devices and their software are battle-tested by the Ledger Donjon, a world-class troupe of white-hat hackers. Due to their hard work, Ledger devices have never been hacked!
Ledger Nano X Review
| Bitcoin wallet | Type | Self custody | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version |
|---|---|---|---|---|---|---|---|---|---|
Ledger Nano X | Hardware Wallet | Yes | $149 | Ordinals (via Sparrow or Leather) | Lightning, Stacks | ETH, ADA, SOL, ATOM, DOGE, INJ, DOT, XTZ, XLM, XRP and many more | Yes | Yes | Yes |
Ledger Nano X Wallet Pros and Cons
| Pros | cons |
| ✅ Supports a wide range of networks and assets | ❌Doesn’t support Ordinals without a third-party crypto wallet (yet) |
| ✅ Compatible with third-party wallet interfaces for managing alternative assets | ❌Its Trusted Display is quite small, thus not suited for partially-sighted people |
| ✅ Supports Bitcoin Layer 2s such as Lightning and Stacks | ❌ Costs $149 |
Trezor Model T
The Trezor Model T is the flagship crypto hardware wallet developed by SatoshiLabs due to its intuitive touchscreen, improved support for different cryptocurrencies, and advanced security features compared with the Trezor One model.
Like all hardware wallets, it stores private keys offline—the key feature of a cold wallet that is essential to keep your crypto safe. It also offers a PIN code feature to prevent thieves from accessing your crypto with access to the physical device.
The Trezor Model T supports Bitcoin but doesn’t offer the option to interact with Bitcoin layer 2s without connecting to third-party interfaces.
Trezor Model T Review
| Bitcoin wallet | Type | Self custody | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version |
|---|---|---|---|---|---|---|---|---|---|
Trezor Model T | Hardware Wallet | Yes | $179 | No | No | ETH, SOL, DOGE, INJ and some others | Yes | No | Yes |
Trezor Model T Pros and Cons
| Pros | cons |
| ✅ Offers and on-ramping service | ❌Doesn’t support Bitcoin layer 2s |
| ✅ Supports a range of networks outside the Bitcoin ecosystem | ❌Doesn’t offer a mobile app |
| ✅ Large touchscreen display | ❌Doesn’t support alternative Bitcoin assets such as Ordinals |
SafePal S1
SafePal is a crypto wallet provider that offers both software and hardware wallets. Its flagship hardware wallet is the SafePal S1, which it claims is completely air-gapped. This means that as well as storing private keys offline, it doesn’t interact with any other device or take part in wireless or wired connectivity including Bluetooth, NFC, WiFi, and even USB cables. As such, it is a true cold wallet, as all air-gapped wallets are.
This physical crypto wallet offered by SafePal offers a full-colored screen and a D-pad for navigation.
The SafePal S1 supports the Bitcoin network alongside other popular networks such as Ethereum, Solana, Cosmos, and Tron. That said, it does not yet support any Bitcoin layer 2s or alternative Bitcoin assets.
Safepal S1 Review
| Bitcoin wallet | Type | Self custody | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version |
|---|---|---|---|---|---|---|---|---|---|
| SafePal S1 | Hardware Wallet | Yes | $49.99 | No | No | ETH, ADA, DOT, ATOM, SUI and many more | Yes (Simplex) | Yes | No |
SafePal S1 Wallet Pros and Cons
| Pros | cons |
| ✅ Cheaper than most hardware wallets on the market | ❌ Not very user-friendly for beginners |
| ✅ Claims to be completely air-gapped | ❌ Is reasonably new on the market, which could leave it vulnerable to bugs |
| ✅ Offers on-ramping, allowing you to buy crypto with fiat currencies | ❌No support for Bitcoin layer 2s |
BC Vault
BC Vault is a hardware wallet with a bit of a difference from the others on the list. It technically is a cold wallet, however, it doesn’t use a seed phrase backup. They claim without a seed phrase, you are better protected from malware and spyware on your internet-connected devices. However, seeing as BC vault is not yet battle-tested, only time will tell if that holds true.
BC Vault does not currently support Bitcoin layer 2 networks or alternative assets. That said, it supports a huge range of cryptocurrencies natively, such as Ethereum, Solana, Doge, Polkadot, and many more. It also offers an on-ramping feature, allowing you to buy Bitcoin with fiat currencies directly within its interface.
The physical device itself has a large screen and a D-pad for navigation. Plus, you can also customize the design on the aluminum casing yourself.
BC Vault Review
| Bitcoin wallet | Type | Self custody | cost | Token support | layer 2s supported | other networks supported | On-ramping | mobile app | desktop version |
|---|---|---|---|---|---|---|---|---|---|
| BC Vault | Hardware Wallet | Yes | $135 | No | No | ETH, XRP, XLM, DOT, SOL, DOGE, and many more | Yes (Coinify, Moonpay, Finchpay) | No | Yes |
BC Vault Wallet Pros and Cons
| Pros | cons |
| ✅ Offers on-ramping, allowing you to buy crypto with fiat currencies | ❌Doesn’t support alternative Bitcoin assets |
| ✅ Offers insurance of 1BTC for anyone that can break its encryption | ❌Doesn’t support Bitcoin Layer 2s |
| ✅ Has its own version of retro game Snake | ❌Doesn’t support connecting to third-party crypto wallet interfaces |
Best Bitcoin Wallet Reviews
| Bitcoin wallet name | Type | Self custody | compatible hardware | cost | Token Support | Bitcoin layer 2s supported | other networks supported | On-ramping | mobile app | desktop version | browser version |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Leather Wallet | Hot Wallet | Yes | Yes | FREE | Ordinals, Stacks, Runes, Stamps, BNS, BRC-20, SRC-20 | Stacks | Harmony, Fantom, Avalanche and others | Yes (requires an account on exchanges) | Yes (not compatible with hardware wallets) | Yes (only BTC and STX) | Yes |
| Sparrow | Hot Wallet | Yes | Yes | FREE | Ordinals | No | No | No | No | Yes | No |
| Exodus Wallet | Hot Wallet | Yes | Yes (Trezor Only) | FREE | No | Lightning | No | Yes (Ramp, Moonpay) | Yes | Yes | No |
| Zengo | Hot Wallet | Yes | No | FREE | No | No | ETH, SOL, ADA, DOT, ATOM, and many more | Yes | Yes | No | No |
| Coinbase Wallet | Hot Wallet | Yes | ✅ (Ledger only) | FREE | No | Lightning | ETH, DOGE, MATIC, XTZ, | Only possible if you link it to a coinbase custodial account | Yes | No | Yes |
| Guarda Wallet | Hot Wallet | Yes | ✅ (Ledger only) | FREE | No | No | ETH, DOGE, XRP, SOL and many more | Yes (SEPA) | Yes | Yes | No |
| Ledger Nano X | Hardware Wallet | Yes | n.a | $149 | Ordinals (via Sparrow or Leather) | Lightning, Stacks | ETH, ADA, SOL, ATOM, DOGE, INJ, DOT, XTZ, XLM, XRP and many more | Yes | Yes | Yes | n.a. |
| Trezor Model T | Hardware Wallet | Yes | n.a | $179 | No | No | ETH, SOL, DOGE, INJ and some others | Yes | No | Yes | n.a. |
| SafePal S1 | Hardware Wallet | Yes | n.a | $49.99 | No | No | ETH, ADA, DOT, ATOM, SUI and many more | Yes | No | Yes | n.a. |
| BC Vault | Hardware Wallet | Yes | n.a | $135 | No | No | ETH, XRP, XLM | Yes | No | Yes | n.a. |
Our Methodology To Review The Best Bitcoin Wallets
If you’re trying to pick the best Bitcoin wallet for you, you might be wondering how to review each one. If you want to know why these Bitcoin wallets made the list, let’s look at some of their most important features:
Type of Wallet
First of all, the type of crypto wallet is important to assess. Software wallets are free, but they have security issues and are thus unsuitable for protecting large amounts of crypto. Hardware wallets, on the other hand, are very secure but they will cost you something, as you’ll have to invest in a physical device.
Custodianship
Custody of your crypto is also imperative to understand. To explain, custodial wallets (such as those offered by centralized exchanges) do not give you true ownership of your assets. Using a non-custodial wallet, you can guarantee that you are the only person with access to your accounts. None of the crypto wallets on this list are custodial as it’s not recommended to store assets in these types of wallets. However, if you’re assessing crypto wallets outside of this list, it’s important to take into account.
Compatible With a Hardware Wallet
While hot (software) wallets may be required to connect to specific apps or platforms, as you know, they are not very good at keeping your funds secure. Thus, when considering which Bitcoin wallet is best for you, checking its compatibility with a hardware wallet is a must. By using these two crypto wallets together, you can access whichever platform you like without leaving your private keys in a vulnerable position.
Purchase Cost
Software (hot) wallets tend to be free, whereas hardware wallets can vary in cost. Before you buy a physical device, you may want to consider how much each of them costs and what kind of features they offer for that price.
Crypto Assets and Networks Supported
If you only need a crypto wallet for protecting Bitcoin, then you have a wide range of wallets to choose from. But that’s not to say that the ecosystem ends there. There are now several Bitcoin layer 2 chains gaining popularity, such as the Lightning Network and Stacks. Plus, the asset ecosystem is expanding too: new Bitcoin protocols unlock the power to create non-fungible Bitcoin assets such as Bitcoin ordinals and stamps. However, to interact with these layer 2s and alternative assets, you’ll need a Bitcoin wallet that supports them. That’s why this list includes information on whether each Bitcoin wallet supports these chains or assets.
Device Compatibility
Not all crypto wallets work on all devices. Some software wallets will have a desktop version but no mobile version or vice versa. Then you’ll also find that the companion apps for hardware wallets may not work on every internet-connected device either. If you use a less common operating system on your phone or laptop, this is an important feature to check.
Crypto Wallets Guide
What Is a Crypto Wallet?
A crypto wallet is a device or piece of software that allows you to manage and store private keys. These private keys allow you to control your account, thus a crypto wallet’s job is to give you the power over these keys without revealing them to anyone else.
How Do Bitcoin Wallets Work?
Bitcoin wallets will typically be controlled by something called a seed phrase. Essentially, this is like the master key to all of the accounts you create with that wallet. The seed phrase is made up of 12-24 words which is a human-readable translation of a very random number called the entropy. Each time you create a new account, your Bitcoin wallet generates a key pair using your seed phrase: one public key and one private key.
Private Key
Each blockchain address is controlled by a single private key. However, it’s important to note that anyone with this private key has access to the entire account. That’s why keeping it safe is imperative. The private key of each account is also necessary to generate the public key.
Public Key
The public key of your account is its uniquely identifiable number. Essentially, it’s a unique code that allows others to find and send funds to your account. Your blockchain address is simply a translation of this number into a more human-readable format. As mentioned, is generated by your private key using a secure mechanism. This allows your crypto wallet to restore your accounts with just the seed phrase, as there is a cryptographic link between the seed phrase, your private keys and your public keys. However, the link is cleverly designed so that it’s impossible to work out the private key with the public key, but very easy to work out the public key with the private key.
Types of Bitcoin Wallet
Bitcoin wallets come in three main types: software wallets, paper wallets, and hardware wallets. Let’s take a look at how they differ:
Software Bitcoin Wallets
Software wallets, often referred to as hot wallets operate via software on your computer or smartphone. This means they store private keys on an internet-connected device vulnerable to online threats such as malware and spyware. All software wallets have this vulnerability, but apart from that, they have some key differences in features and functionality.
Mobile Bitcoin Wallets
Mobile Bitcoin wallets operate via apps on your smartphone. These types of wallets are convenient for interacting with crypto on the go.
Desktop Bitcoin Wallets
Desktop Bitcoin wallets are programs you install on your computer, such as a Mac or PC.
Bitcoin Wallet Extension
Bitcoin wallet extensions work via browser extensions. If you want to use a wallet browser extension, you’ll need to check that your chosen browser is supported.
Bitcoin Paper Wallets
Paper wallets are simply pieces of paper with private keys printed on them, typically in the form of a QR code. These types of wallets are very secure, as they are not vulnerable to online threats like malware and spyware. However, they also come with the risk of loss, theft, and damage. If someone finds your paper wallet, they will automatically have access to your funds. Then if your paper wallet goes up in flames in a house fire, there’s no way to retrieve your funds.
Beyond that, they are also cumbersome and complex to use. It’s all too easy to make a mistake while transacting with a paper wallet—using them runs the risk of human error.
Bitcoin hardware wallets
Hardware wallets are the most secure and user-friendly type of Bitcoin wallet. They store private keys offline and, thus are immune to online threats. In addition, they offer a user-friendly interface, allowing you to interact with crypto just as simply as using a software wallet. Many hardware wallets also offer the option to connect to a software wallet. Using these two types of wallets together gives you the best of both worlds: security and ease of use.
How To Create a Bitcoin Wallet?
Creating a Bitcoin wallet depends on which type of wallet you choose. Let’s dive into how to create each type.
How To Create a Bitcoin Hot Wallet
To create a BTC hot wallet you’ll need to follow these steps
- Choose which Bitcoin wallet provider is best for you
- Install the software on your computer or smartphone
- Initiate the wallet set-up, which will typically involve recording your seed phrase
- Generate your first Bitcoin account
Now you should have a new Bitcoin hot wallet address you can use to send and receive BTC.
How To Set up a Bitcoin Hardware Wallet
Creating a Bitcoin account will differ depending on which Bitcoin hardware wallet you choose. But typically, you’ll need to follow these steps:
- Choose which Bitcoin hardware wallet provider is best for you
- Purchase the physical device and wait for it to arrive
- Initiate the wallet set-up, which will typically involve installing its companion app on your internet-connected device and recording your seed phrase
- Install the Bitcoin app
- Create your first Bitcoin account
Now you should have a new Bitcoin wallet address you can use to send and receive BTC.
How Do You Choose the Best Bitcoin Wallet?
Without a crypto wallet, you won’t be able to send BTC to anyone. Plus, without a non-custodial crypto wallet, you don’t actually own your funds. Unlike fiat currencies managed by financial institutions, crypto is decentralized. That means only you have access to the funds in your non-custodial wallet. Without a crypto wallet, you don’t really own your funds.
Frequently Asked Questions About Best Bitcoin Wallets
What Is the Best Crypto Wallet?
The best crypto wallet depends entirely on what you need it for. However, if you want a secure and user-friendly solution for managing your Bitcoin, consider investing in a hardware wallet. With a hardware wallet, you can keep your private keys safe. For an extra security step, you may also want to set up a cold wallet. Luckily this is easy to do if you already have a hardware wallet.
What Is the Safest Bitcoin Wallet?
The safest Bitcoin wallet is one that stores private keys offline, otherwise known as a cold wallet. Paper wallets and hardware wallets both offer this option, but the former comes with a risk: their vulnerability to loss, theft, and damage. As a result, the safest Bitcoin wallet is a hardware wallet. It lets you manage a cold wallet without the hassle of worrying about a single point of failure: a flimsy piece of paper.
What Is the Best Anonymous Bitcoin Wallet?
The best Bitcoin wallet for staying anonymous is a paper or hardware wallet, in other words, a cold wallet. Signing transactions offline makes sure you don’t accidentally reveal your identity through your internet-connected device. If you want to guarantee your anonymity, you may even want to consider using an air-gapped wallet, although these are not user-friendly and are best left to the crypto experts.
What Is the Best Free Bitcoin Wallet?
The best free Bitcoin wallet depends on which features you require. Check out the comparison table above to find out which free Bitcoin wallet suits your needs.