What is Bitcoin wallet and how to store your Bitcoins
Our aim is to provide easy to understand information on different Bitcoin and other cryptocurrency wallets, how to use them and where to get them. We are currently in progress of adding much more content, so stay tuned.
Quick glance through different types of wallets
Desktop PC wallets
Most of the time the unsafest way to store your bitcoins. Good for testing purposes and with small amounts of money.
Exhanges
Security depends a much on the exchange, but generally speaking using them to store all your coins is unsafe in the long term and against the core idea of cryptocurrencies.
Mobilephone wallets
More secure than desktop wallets, but still not bulletproof. Good for day to day things.
Paper wallets
Can offer good safety for long time holding, but the security of the paper wallet depends a lot on how it was made and how it is accessed when it is time to spend the money. Not really recommended in any situation.
Hardware wallets
Combines good safety and convenience for normal user. Anyone that handles significant sums of bitcoins should have one.
Air gapped wallets
When properly done offers the maximum safety. When poorly done, not much better than your standard PC wallet. Recommended only for users that really know what they are doing.
Multisig wallets
The most secure way to store your bitcoins, at least if you put effort in it. In short, instead of using one wallet to sign transactions, you have to use multiple wallets to do it and if you actually want to improve the security, all these wallets should be in different devices.
Hottest hardware wallets
Recommended
Trezor Model One
Trezor Model One is an affordable and user-friendly hardware wallet with publicly available source code. On top of that supports multiple cryptocurrencies.
- Published source code
- Works with many cryptocurrencies
- Pretty easy to use
- Cheap
Popular choice
Ledger Nano S Plus
- Popular
- Works with many cryptocurrencies
- Pretty easy to use
- Cheap
Top of the line
Trezor Model T
Trezor Model T makes everything easier compared to Model One, while still maintaining high security standards. In fact, it even improves security. One of the crucial aspects of a hardware wallet is ensuring the safety of the seed words, and Trezor Model T makes this easier by allowing them to be divided and stored in multiple physical locations
- Published source code
- Easy to use
- Works with many cryptocurrencies
Top security
Coldcard Mk4
Coldcard is probably the safest Bitcoin hardware wallet there is, but that comes with a cost of more difficult to set up and use. Recommended only for users that are familiar with Bitcoin and how wallets work.
- Published source code
- Extreme security
- Supports only Bitcoin
- Not for beginners
Hottest Exchanges
Great selection of coins and features
Kucoin
Kucoin has a great selection of different cryptocurrencies and gives the users ability to earn from staking and lending their cryptocurrencies to margin traders. Has also number of different trading bots available for users.
- Excellent selection of altcoins
- More ways to earn with assets than anywhere else
- Low fees
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Biggest exchange
Binance
Binance has hold the title of the biggest exchange multiple years. Has great selection of cryptocurrencies and besides staking offers also interest for some coins and some riskier options. Binance also keeps separate self insurance fund around 1 billion dollars to safeguard against hacks.
- Good selection of different coins
- Multiple ways to earn with assets
- Low fees
- Save 10% on fees by using our referral link
Top security
Kraken
Kraken is probably the most trusted exchange. Has done regular asset audits since 2014 and was the first exhange to offer proof of reserves audits. Offers good security features for user accounts and ability for users to stake their coins.
- Excellent reputation
- Most likely the safest exchange there is
- Offers staking
Safe choice
Coinbase
One of the most popular exchanges. Coinbase is a publicly traded company in the USA, which makes them likely to follow all regulations very carefully. Has a decent safety record and insurance for the USD held in the account. Decent user account safety options.
- Publicly traded company
- Decent security
- Insurance for USD in the account
Introduction to cryptocurrency wallets
How Bitcoin wallets actually work?
Bitcoin wallets operate differently than traditional wallets you might carry in your pocket. Instead of physically holding your bitcoins, these wallets store the keys necessary to control your bitcoins within the blockchain. It’s more accurate to think of them as accounts to an internet service rather than a traditional wallet. Losing the device where your wallet is stored isn’t a significant issue as long as you have your seed words securely stored. These seed words act as a recovery method, allowing you to restore your wallet on a new device, much like logging in to an internet service from any device with an internet browser.
Similarly to an internet service credentials, if someone gains access to your seed words, they gain control over your bitcoins. Main difference is that with cryptocurrencies there is no customer support that could restore your money. Therefore, it’s crucial to keep your seed words safe and avoid digitally backing them up to prevent unauthorized access and potential loss of your digital assets.