Bitcoin Wallets: Which One Should You Choose?

Bitcoin Wallets: Which One Should You Choose?

Whether you have a cold storage wallet, hot wallet, or even keep your BTC in a currency exchange platform wallet, one thing’s for sure. You can’t have Bitcoin without a wallet. You must have somewhere to not only store your crypto but to keep it safe as well.

However, since there is a mountain of options and companies to choose from, it’s easy to become overwhelmed at the prospect of choosing the right one for you.

But we’re here to give you all the information you need in order to make that choice and keep your crypto safe!

What Is a Bitcoin Wallet?

Your Bitcoin wallet is essentially a digital version of the wallet you have in your back pocket - it’s there to store your crypto.

However, for added security, unlike a physical wallet, a Bitcoin wallet comes with a private key AKA seed. This private key is needed anytime you want to carry out any type of transaction such as making a purchase or exchanging your crypto for another type.

The private key is like your unique signature and you cannot access your wallet or make transactions without it.

Additionally, it is also there to ensure a third party cannot spend or steal your wallet content - so keep it safe!

How Does a Bitcoin Wallet Work?

All Bitcoin transactions are conducted through a wallet via a blockchain (shared public ledger). The transfers are simple and work as a bank transaction, for example, you send a set amount from your wallet to a chosen destination wallet.

Most transactions done through wallets is one party sending BTC to another party in exchange for goods or services. Every wallet will validate the transactions using its private data to sign for the exchange. This will also create a proof of the transaction.

There are no limits to how much Bitcoin you can store in a wallet. However, just like with a bank account, it’s best not to keep all your crypto in one place.

Therefore, many people opt to have several wallets in use at once and spread their crypto across each option.

How Much Does a Bitcoin Wallet Cost?

To keep Bitcoin in a wallet is free, there are no fees or service charges just to have crypto stored in there safely.

However, you should expect to pay for certain wallets as a one-off cost in the first place. This could be just a few dollars up to 200 dollars. Although some are also completely free.

If your wallet is through an exchange then You’ll pay various fees to the exchange platform you’re using and the amount will depend on the transaction type.

But, you’ll know how much the fees will be for your transaction before you complete the process so you can choose to back out if you are not happy with the fees.

How Do You Cash Out Your Bitcoin Wallet?

Every wallet will have different rules about time periods, fees, which fiat currency you can convert to, etc, so you’ll only know for sure once you have chosen a wallet type. 

However, you can read an in-depth article here that details all you need to know about cashing out Bitcoin that can help you if you’re ever in need of accessing your crypto as cash quickly.

Our Recommendations

As we said earlier, there are different kinds of wallets and hundreds of different companies to choose from. So, we wanted to ensure that we recommended the right ones for you.

Security has been one of our biggest priorities when analyzing the various options, as well as consumer reviews, real-life experiences, and costs. A Bitcoin wallet is something that has to tick every box otherwise it’s not worth using.

1. Exodus - Free

Pros

  • Free to open
  • Has cloud storage
  • Has cold storage
  • Built-in exchange
  • Good customer support
  • Wide range of crypto to choose from

Cons

  • Closed source software

Exodus can be used on both desktop and mobile. The platform allows you to exchange between 150 cryptocurrencies, which is a great start given that this option is free. You can set custom fees thereby keeping your costs down.

This wallet is simple, easy to use, and its lack of complicated features makes it great for first-time users.

2. Trezor Model T - $195

Pros

  • Strong security features
  • Built-in exchange
  • Has cold storage
  • Wide range of crypto to choose from
  • Open-source software with the added benefit of community and customer support

Cons

  • No cloud storage
  • Not the simplest user interface
  • Most expensive than other options
  • The small touch screen makes typing difficult

The model T is the second generation of wallets to come from this company and it is as good as the first and then a whole lot more. With the Trezor T, you can access third-party exchanges, like CoinSwitch and Changelly.

You can gain access to more than 1,800 different cryptocurrencies- And with its extensive security features in place, you may be able to justify the price tag by knowing your wallet and crypto couldn’t be safer.

3. Ledger Nano X - $119

Pros

  • Has cold storage
  • Access to ledger live
  • Secure without being expensive
  • Open-source software with the added benefit of community and customer support

Cons

  • No cloud storage
  • Limited storage
  • No wireless Bluetooth feature

The Nano X looks like a USB drive and connects to your device via Bluetooth or USB. The X is the second generation wallet to come from the French company, Ledger, and has been a firm favorite for many users for several years.

Many users, understandably, prefer a hardware wallet and Ledger Nano X comes out on top. You’ll have access to more than 1,800 different cryptos and you can connect the wallet to your mobile without needing a computer.

4. Electrum - Free

Pros

  • Has cloud storage
  • Has cold storage
  • Customizable transaction fees
  • High level of security

Cons

  • Basic user interface
  • Limited customer support
  • Only uses Bitcoin

For more than ten years, Electrum has been providing Bitcoin wallets, and while not much has changed over the last ten years, not much needed to change.

This wallet is jam-packed with features, and although you have limited customer support and can only use Bitcoin, any advanced or experienced users will love the interface and features included.

5. Ledger Nano S - $59

Pros

  • Has cold storage
  • Access to ledger live
  • Secure without being expensive
  • Open-source software with the added benefit of community and customer support

Cons

  • No cloud storage
  • Maximum storage of three apps
  • No wireless Bluetooth feature

If you’re happy to pay a little for your wallet, then the Ledger Nano S is the right one for you. At just $59, it’s a bargain for what you get in return. It’s compatible with more than 1,800 cryptocurrencies, you get super secure storage, and customer support is a great relief.

6. Mycelium - Free

Pros

  • Has cold storage
  • Has cloud storage
  • Open-source software
  • Customizable transaction fees
  • Ability to use hardware wallets

Cons

  • Mobile-only
  • The confusing interface that takes time to get used to

While this wallet is Bitcoin only, it’s perfect for anyone who prefers to use their mobile. This wallet also has hardware wallet support, a built-in exchange, and you set your own fees.

In Summary

  • Best for Beginners: Exodus
  • Best for Security: Trezor Model T
  • Best Hardware Wallet: Ledger Nano X
  • Best for Advanced Bitcoin Users: Electrum
  • Best Bang For Your Buck: Ledger Nano S
  • Best for Mobile Users: Mycelium

Now that you have seen the best of the best, you should be feeling a lot less overwhelmed about your choice. Just remember to keep your private key safe, secure, and away from prying eyes!

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