The acceptance of Bitcoin has grown substantially, and its popularity is increasing. You can withdraw your cryptocurrency from an exchange and store it in an external wallet. The most exquisite $BTC wallets make it simple to safely store and oversee your crypto assets.
The newbie investors who want to buy or store $BTC for the first time, the first thing on their search checklist would be “What wallet is the best for storing $BTC?”. There are different kinds of $BTC wallets, different $BTC or cryptocurrency investors have several reviews about these wallets depending on their costs, user experiences, supported cryptocurrencies, and user satisfaction.
This article will comprehensively emphasize what crypto wallets are all about, the types of crypto wallets, and which is best for $BTC.
What Is Crypto Wallet?
A crypto wallet is software that is linked with the blockchain technology of your preference by creating public and private keys, keeping records of your account balances, and most importantly sending and receiving cryptocurrencies.
Types Of Crypto Wallets
There are two types of crypto wallets. These wallets are used for different purposes and there also have their own merits and demerits. These two types of wallets are;
- Hot wallets, and
- Cold wallets
In the substituent lines, we will be looking at what both wallets are, the examples, and the uses.
The need for an internet connection distinguishes hot wallets from cold wallets. A hot wallet is also known as an online wallet. There are simpler to use, but unfortunately, there are prone to risks. Most times, there are more susceptible to hacking than cold wallets, considering the measures given to prevent it.
The fact hot wallets are typically custodial increases the risk of storing cryptocurrency there. This shows that the private keys of the coins are not stored by its owner in their wallets. Most of the time, the assets that are not traded are transferred to a wallet from a provider other than an exchange since fully non-custodial wallets are considerably safer. Browser, web, mobile, and desktop wallets are other types of hot wallets.
To prevent your assets on the hot wallets from scammers, ensure the following precautions;
Never flaunt open discussions about having a substantial amount of $BTC quantity on your wallet as this will help to prevent unwanted attention of intruders into your wallet to get you scammed.
Don’t disregard the safety precautions (such as your password) that might reduce the probability of illegal access to your account.
Focus on phishing websites as well, and make sure the address you access is valid at all times.
These are internet-free gadget and enables the offline storage of cryptocurrencies. At any time, an individual can receive $BTC in a cold wallet. In terms of spending them, the gadget needs to be connected to a PC or a laptop. This category of wallet can be a hardware wallet or a paper wallet.
Hardware wallets are typically USB drive gadgets created for offline private key storage. This kind of wallet is resistant to hacking by scammers and computer viruses. The coins stored in this wallet are protected by a PIN code. The average price of this wallet ranges between $70 to $150. Examples of the most famous from them are; Trezor Wallet and Ledger Nano S.
To safeguard your cryptocurrency for the long term, it is important to send it to a paper wallet. There are numerous online resources available that are specifically designed to create this wallet. Just printing the output they offer on paper is all that is required.
What Wallet Is Best For Bitcoin?
Different kinds of wallets can be used for storing $BTC. You have lots of options when deciding the type of wallet you want for storing your Bitcoin. This can range from an online wallet to a well-secured hardware wallet. Well, we have the following classes of wallets;
- Trezor Model T (best for security),
- Ledger Nano S (for integration),
- Electrum (for advanced Bitcoin users),
- Exodus (for beginners), and
- Mycelium (for mobile users).
The above lists are different examples of wallets (both hot and cold wallets) and are selected based on different views or considerations such as user opinions, costs, and security. Since it has to do with funds, it is important to put security into consideration when deciding on the wallet you want for storing your $BTC.
Crypto wallets are important gadgets that help an investor to safeguard their $BTC and other cryptocurrencies. These crypto wallets are of two different types, which are; cold and hot wallets. Examples are cold wallets are Trezor Model T, Ledger Nano X, etc and hot wallets are; Exodus, Mycelium, etc.
As a crypto investor, major precautions are to be taken in protecting your PIN and private keys as it helps to prevent scammers from having illegal access to your crypto wallet. There are different factors that to be put into consideration when choosing the kind of wallet suitable for storing your cryptocurrencies with $BTC inclusive. Some of these factors are; security, customers review, and costs.