Introduction

A cryptocurrency wallet is a cryptocurrency or key storage device that gives you secure access to your bitcoins. A wallet can be a dedicated device, an app, or downloaded files.

A bitcoin wallet is a place where bitcoins are stored, without any other cryptocurrency. Bitcoin is the most expensive cryptocurrency for a reason, it also triggers all the crypto market trends like rise and fall. Other people’s bitcoins will always want to get their hands on them, so the protection of your savings needs to be solid. For reliable protection, you need the right bitcoin wallet.

To choose the right bitcoin wallet, you need to emphasize security and privacy. In addition, the wallet should give you full control over your bitcoins and not restrict access.

Types of bitcoin wallets

There are three types of bitcoin wallets: Hot, warm, and cold. Some work both online and offline. They also differ in terms of security, stored on different platforms, etc.

Web wallets

Web wallets are e-wallets, hot wallets or custodial wallets. They are convenient and easy to use, free, with training, support service, etc. You can do steaking, trading, farming on them. If you ask which bitcoin wallet is best to get started? – Web wallet will be the right answer, many famous traders started there.

The most popular hot bitcoin wallet is the Binance crypto exchange. If not 100, then 99% of all cryptocurrencies are available on it, even FDUSD token can be bought only here. The largest crypto exchange in the world, with many opportunities, from withdrawing finances, to investing and earning.

Mobile wallets

Mobile bitcoin wallets are applications on smartphones. They can be both cold and hot wallets (HK and HK). You can distinguish them by the presence of a Seed phrase, HK will have one. 

Many exchanges launch their applications, which give almost the same opportunities as the sites. But they need to be downloaded, although it is easier to log in. These hot wallets are suitable for withdrawing bitcoins and cryptocurrency to fiat. They work online, many traders call cryptocurrency wallet apps, in tandem with websites – the best online bitcoin wallets.

Mobile HCs are much safer, but only allow you to manage cryptocurrency without withdrawal to fiat. They are also anonymous and don’t require KYC identification.

Desktop wallets

Desktop bitcoin wallets are warm wallets. They are bitcoin wallets for mining, a computer with a downloaded blockchain of one or more coins. To start such a cryptocurrency wallet, you need a computer with a stable connection and a 600+ GB SSD drive. In 2023, blockchains of coins such as Bitcoin and Etherium have crossed 500GB. You can download the Bitcoin blockchain network at Bitcoin Core or another website. 

The download takes a few hours and you can download the entire blockchain, or a portion of it. If you have the whole blockchain – you will be able to verify transactions, do validation and mining. In addition, your cryptocurrency wallet will even be available offline! You’ll be able to enter your keys so that no one can steal them. And if you engage in mining – the mined crypto will be able to come to your desktop or exchange wallet. 

Hardwar wallets

Hardwar wallets are offline wallets for bitcoin and other cryptocurrencies. Devices that are designed specifically for storing cryptocurrencies, HC wallets. They work even without being connected to a PC. They usually look like a large flash drive with a display and a couple of buttons. 

Such crypto wallets store the keys to your cryptocurrency and give the maximum level of security and protection. These crypto wallets have a Seed-phrase with which you can recover your wallet if it has been lost or broken. 

They are mostly multi-currency and give access to multiple cryptocurrencies (Trezor is 1600+, and that’s the worst).

Specialised wallets allow you to store keys to one specific cryptocurrency or one specific network. Such wallets are paper wallets with a printed QR code. They provide storage of only one cryptocurrency, do not allow diversification and change of address, as it is inscribed in this QR code. This weakens the anonymity a bit.

There’s also Metamask wallet – cold, but you have to start a new one for each cryptocurrency. For example, if you have this bitcoin wallet, you will have to start a new local Metamask wallet for Etherium.

Criteria for choosing a bitcoin wallet

There is no best cryptocurrency wallet, and there is no right answer to the questions: “Where is the best place to store bitcoins?” and “What is the best way to store bitcoins?”. Because bitcoin can serve different purposes, be an investment, be an asset or be a means of payment.

The wallet should have the following qualities: Security, usability, compatibility with devices, operating systems, privacy and anonymity. According to these criteria, you can judge whether a cryptocurrency wallet is good or bad. But each user can decide which criteria are important and which are not.

Security Levels

The maximum secure bitcoin wallets are cold wallets, they provide secure key storage. Trezor and Ledger wallets can store them. Private and public keys encrypt automatically. Even if they are plugged in, only a Seed-phrase or password can decrypt them. Once activated on the website, they don’t even need an internet connection. Hacking them remotely is impossible, you can only physically hack them. And in case of loss of the cryptocurrency wallet, the keys that were on them can be restored. There is no programme that can crack Seed-phrase.

But if for some reason you do not trust them, or they do not suit you – can open an account on the exchange. An excellent choice would be the Binance exchange. On this exchange you can set up two-factor authentication. With this authentication, knowing your password and address on the exchange will not be enough to log in. To log in, you will need to enter a 6-digit code that will be sent to your email or mobile phone. 

But the reputation and reliability of the exchange is also important. After all, FTX had the title of top-2, was worth $30 billion, and collapsed in 12 days.

Ease of use

Managing crypto-assets is most convenient through exchanges, i.e. GCs win. Some exchanges release mobile apps (Trustee Plus or Slavi Wallet). On these apps, the functionality allows you to store fiat, cryptocurrency, save your bank card, choose a network, set up a commission and more. In addition, the They have a clear interface. They allow you to borrow steaking, farming and withdrawing crypto.

The exchanges have a roadmap, instructions, require confirmation before each stage of a payment transaction and warn about scammers. In extreme cases, the support service will give recommendations. 

On mobile exchanges, the functionality is scarcer. Operations only with cryptocurrency, without withdrawal in fiat.

The only thing that connects them – they are suitable for any PC, laptop, macbook, etc., even with average iron. And mobile applications pull smartphones and iPhones perfectly. The main thing is that they should be released after 2015. 

Issues with anonymity and privacy are also important. For example, HCs don’t even require you to authenticate that you’re human, while exchanges require KYC identification. So legally and anonymously withdrawing crypto into fiat is impossible?

No, there is a way, it’s AnyExchange. Our service-exchanger “AnyExchange” believes that people need more financial freedom. This exchanger works with clients keeping their anonymity and confidentiality, without collecting private information. We are not just ready to help you transfer cryptocurrency to card with fiat, but even make a
money transfer directly to you. A courier will deliver the cash to you even if you are in another country. 

Recommendations and tips on choosing a bitcoin wallet

Choosing a bitcoin wallet, it is worth studying not only its characteristics, and focus on their capabilities. News and the latest updаte also matter.

For example, Ledger wallet’s latest updаte is the ability to recover Seed-phrase. 3 people will know ⅓ or 8 words each of your secret Seed-phrase.

Or SOLANA’s smartphone has been found to have a vulnerability. Which one? What can be done about it? How it was solved, etc.

Even the technological peculiarities of your devices: TrusteePlus released a payment card, but it can only use USDT.

Notes on the safe use of bitcoin wallet

Let’s imagine that you chose GC and decided to trade through the Kraken exchange. Then you decided to withdraw crypto, but your crypto account is blocked. Why can this happen? Because there were “dirty” coins on your wallet, which used to be used for criminal activities, such as money laundering. Major exchanges conduct AML checks on a regular basis. 

Such coins can be sent to you by hackers or you can buy them from an attacker by trading. Of course, if you have only 1% of the coins in your account, your cryptocurrency wallet will not be blocked. But if there are 50+% of such coins – they will definitely block it. To avoid this, you need to regularly check for AML. Such checks can be done on our
service-exchanger “AnyExchange”. If you have a lot of “dirty” coins after checking – contact our support team and our manager will try to help you.

Also wallets should be updated, because as they are updated, you will have access to new coins. 

The main thing in the cryptocurrency world is security, you should not just remember passwords, but store them. To keep your keys safe, you use a CC.

If your CC protects your keys – you can take care of additional copying. We don’t recommend buying 3 wallets at once, but you can make a paper wallet. You don’t need to write down your keys, but generate a QR code from them, print it out and keep it in a safe place

Conclusion

Cryptocurrency wallet as a sample of the ideal – there is no such thing as a perfect wallet. After all, if you need the advantages of HK, you will have to put up with their disadvantages. Crypto – do not steal, but it will not be easy to withdraw. It is also possible to store on the exchange, authentication is a reliable way of protection, but you will also depend on how the exchange itself is doing.

There is no such thing as too safe, but you can only choose the best cryptocurrency wallet based on your needs and not on the advice of others. You can combine different types of wallets. But if your wallet is hacked and your cryptocurrency is transferred using your keys, it will be hard to get it back. Therefore, if you decide to invest or earn on crypto, security should be your priority.