Home Cryptocurrency How to select the best crypto wallet for storing bitcoin?

How to select the best crypto wallet for storing bitcoin?

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best crypto wallet

We are at the center of a complex network of transactions with multiple stakeholders everywhere you look. Check websites like bitcoin superstar to utilize the best trading strategies to make your bitcoin trades profitable. And so, it should come as no surprise that securing bitcoin is also an intensive and intricate process.

In recent years, the cryptocurrency world has seen an influx of hacks, thefts, and bad actors – not just individual investors but significant exchanges. The below-mentioned portion aims to help you select the best crypto wallet for storing your bitcoin. We will break down key aspects like ease of use, security, backup features, and more to provide a concise guide on what makes a good wallet.

There are several ways to store bitcoin, but one of the most popular methods is using a software wallet. As you may expect, it’s essential to understand what makes your wallet tick before you decide on one – especially if you have high values stored in cryptocurrency.

Back in May 2018, the Singapore-based exchange platform CoinHako was hacked. More than $200,000 of digital assets were stolen from its hot wallets. This event was just one in a long line of thefts carried out on some of the most prominent exchanges, including Coinrail, Youbit, Bitfinex, and Bit stamp. Let’s explore the tips that can help you to choose a robust and secured cryptocurrency wallet.

Security is Mandate:

Security is your essential worry when choosing a wallet. Before you even start looking at exchanges, you need to investigate how safe cryptocurrency wallets are and how they provide security to their users. They should have independent protocols that protect bitcoin from theft and loss. Some wallets use multi-sig technology, allowing them to set up several private keys to complete a transaction securely.

They hold one of the private keys, while the rest (usually two) stays with you for added security. Others use fingerprint recognition or other biometric features for added safety. Each cryptocurrency wallet differs in security protocols, so it is up to you to choose the one offering the highest level of protection.

Consider Your Budget:

With the rise of cryptocurrency, more developers are attracted to this field, which means that there are now a lot of wallets available on the market. Due to a growing number of options, you need to compare their features, decide which one is the most appropriate for your needs, and understand what features your wallet should have. For example, some private keys are stored with an exchange, meaning that your bitcoin will be at risk if the company gets hacked or goes bankrupt.

Ease of Use:

If you’re planning to store crypto assets long-term, you may consider a hardware wallet. Many online retailers provide different types and models of wallets at different price points.

A hardware wallet is relatively secure and portable compared to a software wallet; however, it is not as user-friendly. However, these wallets come in simple, low-cost models that are just as secure but should only be used for small amounts of cryptocurrency because they require you to download their app to access funds. Some examples of these are Trezor and Ledger Nano S.

Reputation:

Investigating crypto wallets should always look at their track record and understand why they’re trustworthy. This way, you can make a wise decision that does not involve being an injured party in the case of security breaches. Software wallet companies like electrum, Mycelium, and Exodus have proven reliable, and customers trust them with their digital assets.

Access to private keys (owning your bitcoin):

Most wallets work like banks – they store your bitcoin, and you can use them to pay for products and services. However, a web wallet storing your keys online is vulnerable to hacking attacks and won’t give you the same level of security as if the private keys were in your possession.

However, a hardware or software wallet that stores your private key on an offline computer looks more feasible since it provides better protection than having the key stored somewhere online where it can be vulnerable to hacker attacks. Still, one should have access 24/7 to ensure that their bitcoins are securely stored.

Backup features:

When you choose a wallet, look for one that comes with a backup feature so that you can recover your funds if anything happens to your computer. In addition, you must stay away from unfamiliar wallets or new apps and stick to ones that have been tried and tested by many people. Also, make sure the wallet offers secure storage options like two-factor authentication. Finally, any wallet you choose should be available on multiple devices, preferably your desktop computer and mobile devices such as a smartphone or tablet.

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