How to Choose a Bitcoin Wallet in 2020
New Year. New You. New Bitcoin Wallet.
Choosing the best wallet for your coin was never actually simple. From the full-client dinosaurs of old, in which you had to download the entire blockchain in order for them to work- to the many highly questionable yet ubiquitous wallets tied to the most popular trading platforms.
Knowing which bitcoin wallet is the right bitcoin wallet is largely dependent on what you plan on using it for and the type of bitcoin investment you plan on making. These things can seem fairly abstract ideas for someone who is just starting to familiarize themselves with the wide world of bitcoin investments.
Luckily for newbs – there are a number of online platforms, like Bitvavo, that are specifically designed to help guide hopeful traders through the process of how the bitcoin wallet universe works. Making it super simple to make fully informed choices when it comes to choosing things like what sort of wallet will fit you best!
Types of Bitcoin Wallets
Perhaps you’ve already settled on a platform and are now starting to do some independent research into bitcoin wallets. Maybe you’re a seasoned trader and are just looking for some quick insight into what’s hot in 2020. Whatever your motivations, knowing the main types of wallets that exist is absolutely necessary if you’re going to make the best choice for your investment.
Hot wallets are Bitcoin wallets that are constantly connected to the internet. These can be software wallets, online wallets, platform wallets, mobile wallets… If your wallet is always connected online, it’s a hot one.
Hot wallets are great for bitcoin that you plan on moving around or trading with, offering quick liquidity, and very responsive trading and valuation of your stash. However, hot wallets are notorious for getting hacked, and it’s never a good idea to have these types of wallets as your sole keeper of the coin.
Cold wallets are those that are not always connected to the internet. These can be hardware wallets, software wallets, and paper wallets. While these types of wallets are not often connected to the internet, some may be connected online sometimes.
These types of wallets are ideal for storing a backup of any online wallet you have or keeping the lion’s share of your stash under lock and key. As these types of wallets aren’t always connected, it can sometimes take a while to get the wallet connected in such a way that you can actually start sending your coins. Another downfall of cold wallets is “physical” wallets- meaning the wallet is stored on a flash drive or a piece of paper. This means that if the information or vessel for your wallet is lost- it’s gone for good.
Best Bitcoin Wallets Available
Depending on the hot/cold, trade/store, buy/sell crypto goals you have, some wallets provide to be a far superior choice. Here are the top three bitcoins wallets in 2020, narrowed down by category.
These wallets are physical and cold: meaning they’re offline until you say so, and you better find a super safe place for storing them. That being said, these bitcoin wallets are designed to provide you with the absolute highest security available in cryptocurrency. These are the type of wallets that are owned by whales and other intensely serious investors.
While it may look like a garage door opener inside the matrix, Trezor offers top of the line security and sleek design. The wallet itself is super user-friendly and links up with your PC or mobile-only when you tell it to- using either google chrome or a phone app. The wallet allows you to check balances and access personal keys anytime you need them, by using a display function.
- Ledger Nano S
This hardware wallet can be used for any number of cryptocurrencies, not just bitcoin, making it a stand-out in the crowd. It uses a USB to connect to your computer, and a closed execution environment to provide the highest security available in the market. This particular wallet also has a function where it can be recovered if lost.
A hardware wallet specifically made for the ease of use similar to what you can expect from a normal hot wallet. The wallet connects to your mobile device via Bluetooth through an app. While to connectivity is primed and ready to go whenever, or where ever you are, the wallet itself is only connected as you need it to be, keeping your information safe. This hardware wallet also goes a step further and integrates with well known digital exchange platforms.
This online wallet will not only grant you access directly on your PC or mobile, but it also deals in literally hundreds of different digital currencies, making it a top priority for most traders looking for a hot wallet. Private keys are stored directly on the user’s device, so any software malfunctions or system failures won’t result in a loss of your coin.
Supports a high number of different altcoins, offers collaboration with a few different exchanges, and the mobile phone application is one of the most user-friendly and diverse in the world.
This super simple bitcoin wallet is ideal if you’re a beginner and trying to fly solo. It features an automatic backup and really simple access. Edge bitcoin wallet is also comparable with most of the top known altcoins as well.