Bitcoin works as a digital currency using blockchain technology for transactions between people. Everyone knows regular money like USD or EUR, and Bitcoin is similar as you can use it to buy or sell things. Both are used to measure value.
Unlike regular money, Bitcoin doesn’t physically exist. That’s why we use Bitcoin wallets. But what kinds are there, how do you use them, and which are the best in 2023? This article will answer those questions and introduce you to the top cryptocurrency wallets.
What Is Bitcoin Wallet and Why Do You Need It in 2023?
Whether you are a trader, investor, or owner, Bitcoin wallets give their owner the ability to store and send or receive Bitcoins. These wallets exist in both digital and hardware form and have a “public key” and a “private key”, which gives access to the wallet.
A wallet is an essential tool for any Bitcoin owner. There are some wallets that can only store Bitcoin, but nowadays it’s more common for a crypto wallet to store other cryptocurrencies, including Ether (ETH), BNB (BNB), Cardano (ADA), TRON (TRX) and many others. For example a crypto exchange or different mobile or desktop wallets are able to store most of the cryptos.
Everything You Need to Know About Public and Private Key
You’ve probably heard a lot about “keys” in the crypto world. As we mentioned, every wallet has two keys: public and private key. While the former acts as a kind of address and is needed to be seen by others, the latter provides access to that address and is crucial that only the wallet owner knows it! You may have heard the saying “not your keys, not your coins”. Remember this! In the following we will also highlight the importance of this.
Public Keys
Think of your public key as your crypto ID, like an email address. Just as you give your email to receive messages, you share your public key to get cryptocurrency. It’s a set of letters and numbers made by your wallet provider. People can see it on the blockchain and check your transactions, but they can’t use it to control your funds – only your private key can do that.
Private Keys
Your private key acts like the password to your email. Just as you keep it secret to protect your messages, you safeguard your private key to secure your crypto funds. It’s the ultimate key to sending cryptocurrency to others. Keeping it private is vital because if someone gets it, they can control your coins. Remember: “Not your keys, not your coins.” If you don’t control your private keys, you don’t fully own your cryptocurrency. So, share your public key freely, but guard your private key like your life depends on it.
Protecting Your Crypto Assets
Given the irreversible nature of crypto transactions, securing your private key should be at the top of your list. Many crypto storage solutions offer robust security features including encryption, backup options, and two-factor authentication. Always keep a backup of private keys and use unique passwords (containing: 0-9, a-z, A-Z and some special characters like “$”).
Need a Crypto Wallet? Choose the Best Bitcoin Wallet Suitable for You – Types of Crypto Wallets
Choosing the right type of wallet is the first step in securing your digital assets. Similar to how we choose different bags for varied needs—a purse for a party, a wallet for a quick trip to the store, or a suitcase for travel—different crypto wallets serve diverse purposes. They differ in terms of accessibility, security, and convenience.
There are two main types of wallets, the difference between them lies in the private key they hold:
- Custodial Wallets
Third parties such as exchanges or specific wallet providers manage some wallets, often known as custodial wallets. These third parties retain control of your private keys. This setup means you trust the provider to secure your assets and handle backups. Custodial wallets are user-friendly, especially for beginners. However, because you don’t have access to your private keys in these wallets, you lack full control over your assets. It’s like having a bank account where the bank manages and protects your money, and you trust them to do so.
- Non-Custodial Wallets
On the other hand, non-custodial wallets allow you to retain control of your private keys, meaning you have full control over your crypto assets. Desktop wallets, mobile wallets, paper wallets, and hardware wallets are usually non-custodial, giving you responsibility for your assets’ security and backups. It’s required with these wallets to keep your private keys secure and back them up properly, as losing access to them means losing access to your assets.
For Beginners: Initially, a custodial wallet provided by a reputable exchange or service could be more convenient while you are getting familiar with the technology and practices of cryptocurrencies.
For Regular Users and Investors: As you become more familiar to handling cryptocurrencies and understanding the importance of security, it’s recommended to move to non-custodial wallets, especially for storing significant amounts, to have full control and responsibility over your assets.
Another way to distinguish the type of wallets is perhaps their “availability” or “portability”:
Desktop Wallet
Desktop wallets are software you can install on your computer. They are like your personal bank account on your PC or laptop with a good level of security and allowing you to manage your cryptocurrencies independently of third-party services. While relatively secure, it’s essential to have good antivirus protection, as they could be vulnerable to malware and hacks if your computer is compromised. Ideal for those who prefer managing their crypto on a more secure, stationary device.
Mobile Wallet
A mobile wallet is like having a portable bank in your pocket. It’s an app on your smartphone that stores your private keys and allows you to transact cryptocurrencies on the go. These wallets are user-friendly, with intuitive interfaces making them an ideal choice for beginners. While comfortable for daily transactions and quick payments, it’s crucial to maintain relevant security, like regular backups and using additional security features available on the app, to protect against loss or theft of your device.
Paper Wallet
Paper wallets are a physical document containing your wallet’s public and private keys, usually in the form of QR codes. Think of them as a secure safety deposit box—since they are offline, they are immune to online hacking attempts, making them a secure option for storing your crypto assets. However, being physical, they need to be stored securely to avoid loss or damage and may not be as quickly accessible or convenient as other wallet types for making frequent transactions.
Hardware Wallet
Hardware wallets are physical devices, like a USB drive, with them you can securely store your private keys offline. They are one of the most secure options for storing cryptocurrencies, particularly suitable for substantial amounts of assets due to their resistance to online hacking attempts. While they require a bit more initial setup and understanding, their security benefits make them a popular choice among more serious crypto enthusiasts and investors. But don’t worry, as you can find a step by step guide for all of these wallets.
Web Wallet
Web wallets are accessible through web browsers (most of them works as a built in application in your browser), offering convenience and ease of access from any device connected to the internet. They are ideal for those who prefer not to download software or apps, making them extremely user-friendly. However, as they are online, they can be susceptible to hacking, phishing, and other cyber threats, so it’s crucial to use reputable web wallets and employ strong security practices, such as two-factor authentication and strong, unique passwords.
Understand the Difference Between Hot Wallet and Cold Wallet
Choosing between a hot wallet and a cold wallet is a fundamental decision in managing your crypto assets. This classification is based on whether the wallet is connected to the internet or not, impacting its accessibility and security.
Hot Wallets
Hot wallets are connected to the internet, enabling quick and easy access to your assets, making them suitable for daily transactions and trading. These wallets are often user-friendly and can include desktop, mobile, and web wallets. However, being online means they are vulnerable to cyber threats such as hacking, so it’s crucial to use strong security practices and only store smaller amounts that you are willing to trade or spend.
Cold Wallets
Cold wallets are offline, making them immune to online hacking attempts. These include hardware and paper wallets and are best for securely storing large amounts of crypto assets. While cold wallets provide higher level security for your assets, they aren’t optimal for frequent transactions.
Pros/Cons:
- Hot Wallets Pros: Convenient for daily use, user-friendly, suitable for trading and regular transactions.
- Hot Wallets Cons: Higher risk due to internet connectivity, not ideal for storing large amounts securely.
- Cold Wallets Pros: Secure from online threats, ideal for storing substantial amounts of crypto assets.
- Cold Wallets Cons: Not as convenient for frequent transactions or quick access, may have a learning curve.
How to Decide Which is the Best for You
When choosing between a hot and cold wallet, consider your crypto usage and priorities. If you value convenience and need frequent access to your assets, a hot wallet may suit your needs. However, if security is your top priority and you’re looking for long-term solution to store crypto, a cold wallet would be more appropriate.
It is also common to use a combination of both: a hot wallet for daily transactions and a cold wallet for secure, long-term storage. Balancing convenience and security based on your individual needs and usage will lead you to the optimal choice.
Best Bitcoin and Cryptocurrency Wallets in 2023
Navigating through crypto wallets can be overwhelming, especially for beginners. So we present a detailed introduction to some of the best Bitcoin and crypto wallets available in 2023, focusing on their distinctive features, user-friendliness, and security measures to help you make an informed decision. Hopefully we will find the best crypto wallet for you.
Best Bitcoin and Crypto Hardware Wallets – 3 Best Cold Wallets
Trezor Wallet
Trezor is a highly secure, user-friendly hardware wallet, ideal for those looking to store substantial amounts of cryptocurrencies offline. It supports a multitude of cryptocurrencies and offers a clean, intuitive interface making it a suitable choice for beginners and experienced users alike. Its prime feature is its unparalleled security, protecting your assets from both virtual and physical theft.
Trezor, renowned for being a vanguard in the crypto wallet domain, offers secure hardware wallets utilizing both traditional seed phrases and advanced Shamir Backup technology. The hardware wallet aligns itself as a cold wallet, offering heightened security by existing offline, away from the vulnerabilities of the internet, ensuring your crypto assets remain safe from potential online breaches. Our opinion Trezor is one of the best hardware wallet what provides easy and quick access to your crypto assets.
Trezor hard wallets employ the well-established seed phrase security method, where users have access to a unique passphrase, typically a series of 12, 18, or 24 simple English words, providing complete access to the associated crypto wallet.
Their Model T wallet enhances security by incorporating Shamir Backup, allowing users to set multiple seed phrases and determine how many are required to access the wallet. This technology mitigates risks of theft and destruction commonly associated with single seed phrase systems. If a seed phrase is lost or stolen, users can refer to other seed phrases to unlock their Trezor wallet, ensuring an additional layer of security and setting Trezor Model T apart from competitors.
Pros:
- User-Friendly Interface: Simple UI with comprehensive functionality allows for easy navigation and use.
- Enhanced Seed Phrase Security: The integration of recovery seed and Shamir Backup bolsters security.
- Open-Source Security: Even if Trezor ceases operation, the open-source nature of wallets ensures continued safety of your crypto assets.
- Affordability and Value: Offers good value with an affordable lower-end model.
Cons:
- Limited iOS and Browser Support: Inconvenient for iOS users and those using browsers other than Chrome and Firefox.
- Absence of Smartphone App: Lacks the convenience of a dedicated app for mobile users.
- Outdated Feel: The lack of updates and features, coupled with the use of older technologies, makes the wallets feel outdated.
Price:
- Trezor Model One: $69
- Trezor Model T (touchscreen): $219
Ledger
Ledger Wallet emerges as one of the most favored hardware wallets in the crypto space, boasting extensive support for thousands of cryptocurrencies and seamless access to exchanges, DeFi applications, and software wallets. It provides a holistic approach to managing and securing digital assets through its compact, flash drive-shaped device available in two versions – with and without Bluetooth connectivity.
Ledger Wallet is renowned for supporting over 1,000 cryptocurrencies, including Ripple (XRP), Monero (XMR), and Cardano (ADA), providing users with extensive flexibility and options in managing diverse digital assets. The wallet also facilitates access to decentralized finance applications, non-fungible token management, and Ledger’s dedicated desktop and mobile apps, enabling users to execute purchases, staking, and swaps of coins efficiently.
Pros:
- Native Staking and NFT Management: Offers built-in functionalities for managing non-fungible tokens and conducting staking – its really simple to send and receive bitcoin or buy and sell crypto
- Mobile App with Bluetooth Connection: Provides enhanced connectivity and user-friendly mobile management of assets.
- Robust Crypto Education Library: Ensures users have access to comprehensive learning resources through Ledger Academy.
Cons:
- Not Fully Open Source: The software isn’t completely open source, with closed-source firmware on physical devices.
- Lack of Touch Screen: Some users might prefer the convenience of a touch screen, a feature that Ledger lacks.
Price:
- Ledger Nano S Plus: $79
- Ledger Nano X: $149
Cool Wallet
CoolWallet stands out for its unique, sleek design resembling a credit card, offering secure and flexible cold storage for a variety of cryptocurrencies. It is convenient and easy to carry around, making it ideal for individuals who prefer a compact, portable solution for securely managing their crypto assets on the go.
CoolWallet, crafted by the blockchain security solutions firm, CoolBitX based in Taiwan, is a revolutionary hardware wallet designed for the modern, mobile-oriented user. In 2016, the company introduced a preliminary version of this wallet, which has now evolved into the more advanced and popular CoolWallet S, establishing its footing in a market dominated by rivals like KeepKey, Trezor, and Ledger Nano.
CoolWallet S is renowned for its sleek, credit card-like design, making it the thinnest hardware wallet available. It’s compact, clear e-paper display and intuitive native mobile iOS and Android apps streamline the management of cryptocurrencies, ensuring ease of use and accessibility.
It provides cold storage, safeguarding coins from potential online threats, and is compatible with any Bluetooth-enabled device, specifically tailored for smartphones and tablets running on Android or iOS. It allows users to manage funds and private keys on the go securely, ensuring the user’s cryptocurrencies remain within their control through encrypted Bluetooth connections and an EAL5 certified chip, maintaining high international standards of security.
Pros:
- Portable and Sleek Design: Its credit card-like dimensions make it highly portable and aesthetically appealing makes it really easy to transfer crypto anytime
- Diverse Crypto Support: It supports multiple popular cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple/XRP, and Bitcoin Cash.
- Enhanced Security Features: Offers encrypted Bluetooth connection, EAL5 certified chip, and a metal dome button for transaction confirmations, ensuring top-level security.
- User-Friendly Interface: Native mobile apps are intuitive and easy to navigate, enhancing the user experience.
Cons:
- Preliminary Version Discontinued: The first-generation CoolWallet has been discontinued, limiting options for users.
- Cost: Priced at approximately $99, it is comparatively more expensive than some other hardware wallets available.
Price:
- CoolWallet Pro Models: $149
- CoolWallet S Models: $99
Best Bitcoin and Crypto Software Wallets in 2023
Exodus Wallet
Exodus is a versatile software wallet known for its intuitive interface and powerful functionality. It supports a lot of cryptocurrencies and integrates exchange capabilities within the wallet, allowing users to trade assets seamlessly. Its visually appealing and user-friendly design makes it an ideal choice for those new to the crypto space, seeking convenience and variety in managing their assets.
Exodus is a renowned non-custodial wallet, offering users full control over their private keys and a host of innovative features since its inception in 2015. Known for supporting an extensive range of cryptocurrencies across various network standards. It’s big advantage is that is available on multiplatforms, as a desktop application for both Windows and Mac, mobile for Android and iOS, and also has a Chrome browser extension.Furthermore, the app has real-time market price views, an intuitive portfolio manager, and provides connectivity to dApps, making it a good choice for both long and short-term investors. Exodus has a really nice UX/UI interface, making it one of the best crypto wallet for beginners.
Pros:
- Established and Reliable: Launched in 2015, it has been a trusted non-custodial wallet solution, giving users full control of their assets.
- Versatile Cryptocurrency Support: It supports multiple network standards like Bitcoin, Ethereum, Solana, Cardano, and Polygon and allows manual addition of custom tokens from any supported network.
- Cross-Platform Accessibility: Available on desktop, mobile, and browsers and also connects to Trezor hardware wallets.
- Additional Features: It enables connectivity to dApps and offers an integrated staking tool, providing various ways for users to manage and earn from their holdings.
Cons:
- Fee on Fiat Purchases: Due to the partnership with Ramp, users may incur up to 5.45% in fees on debit/credit card payments.
- Basic Security Setup: Offers limited security features, leaving users with the responsibility of safeguarding their private keys.
Price: FREE
BRD Wallet
BRD Wallet is a mobile-based wallet prioritizing user privacy and security. It does not store any personal data, enabling users to maintain their anonymity while using the app. BRD is non-custodial, meaning you have control over your private keys, and it’s designed with a simple interface, making it a suitable choice for beginners looking for a secure, easy-to-use mobile wallet.
The BRD Wallet is a non-custodial one, initially known as Breadwallet, was co-founded by Adam Traidman and Aaron Voisine in 2015, emerging as a straightforward and secure option for crypto users. With its user-friendly interface and built-in exchange, it caters particularly to those who are new to the world of cryptocurrency. However, the convenience and security come with substantial fees, a crucial factor that users need to consider.
BRD Wallet is celebrated for its uncomplicated UI and straightforward transaction processes, making it a favorite amongst beginners. It offers one-click send and receive options and allows users to buy crypto directly using credit or debit cards. Its simplicity extends to its minimalist interface, devoid of perplexing graphs or intricate signup processes, providing a smooth user experience that even caters to those not so tech-savvy.
BRD provides support for a variety of cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and over 100 ERC20 tokens, catering to users looking to explore trading. However, for simple transactions, the options are limited to BTC, ETH, and BNB.
Pros:
- User-Friendly Interface: Offers a straightforward UI, suitable for beginners.
- Secure: Utilizes Apple’s encrypted storage for enhanced security.
- Multiple Cryptocurrencies: Supports Bitcoin, Ethereum, Bitcoin Cash, and over 100 ERC20 tokens.
- Convenient Transactions: Enables easy buying of crypto with credit or debit cards within the app.
Cons:
- High Transaction Fees: Charges substantial fees, around 7.5%, when buying crypto with fiat.
- Lack of Features: Doesn’t support hardware wallets and lacks the multi-sig feature.
- Limited Cryptocurrencies for Transactions: Only BTC, ETH, and BNB are available for simple transactions.
Price: FREE
Coinbase Wallet
Coinbase Wallet is a popular choice offered by the renowned cryptocurrency exchange, Coinbase. It is especially beginner-friendly, providing a secure and comfortable way for users to store, manage, and purchase cryptocurrencies. Its seamless integration with the Coinbase platform makes it a convenient choice for those who prefer to have an exchange and wallet in one place.
With its roots in the renowned Coinbase exchange, has established itself as a secure and convenient Web3 wallet for both novice and seasoned crypto users. Its user-friendly interface, coupled with wide variety of features, positions it as a preferred choice for managing digital assets, exploring decentralized applications, and interacting with blockchain-based services.
Coinbase Wallet supports an extensive range of over 100,000 digital assets, including popular cryptocurrencies like Bitcoin and Ethereum. Additionally, it is Web3 compatible, ensuring smooth interactions with Web3-enabled sites and services, allowing users to conduct transactions, interact with smart contracts, and participate in DeFi applications.
Pros:
- Easy Setup: Quick download, user-friendly app layout, and simple setup process.
- Diverse Asset Support: Facilitates management of a wide range of coins/tokens.
- Enhanced User Control: Operates non-custodial, giving users full control over their private keys.
- In-App Features: Allows buying, selling, swapping, and converting of assets within the app.
Cons:
- Elevated Fees: Charges higher fees compared to other wallets.
- Customer Support Issues: Users have reported unsatisfactory customer support experiences.
- Limited NFT and Educational Support: Offers limited support for NFTs and lacks substantial educational content.
Price: FREE
Blockchain Wallet
Blockchain Wallet is well-known for its high-level security features and support for a wide range of cryptocurrencies. It offers a seamless user experience along with detailed information on transactions and balances, helping users to manage their assets effectively. It’s a solid choice for those seeking a blend of security, convenience, and information in their wallet experience.
Blockchain.com, initially known as Blockchain.info, has evolved since 2011 to offer services in the crypto economy, including a versatile digital wallet, trading and lending services, solidifying its position as a leader.
Blockchain.com provides a platform where users can trade, exchange, and earn interest on their crypto holdings. It supports a variety of coins including BTC, BCH, ETH, Stellar, and USD Tether, and offers a digital wallet with up to 13.5% interest on funds, let the users to maximize their crypto investments.
Pros:
- Diverse Coin Support: Supports a range of popular cryptocurrencies and accepts four different fiat currencies.
- Non-Custodial Wallet: Offers a secure wallet where users have full control of their private keys.
- Low Trading Fees: Competitive trading fees compared to industry standards and offers high interest on digital/web wallet funds.
- Multilingual Platform: The platform is available in 25 different languages, catering to a global user base.
Cons:
- Limited Currency Pairs: Only 40 different currency pairs are available for trading.
- Customer Service Variability: Mixed reviews regarding the reliability and responsiveness of the customer service.
- Safety Concerns: Some users have reported issues with wallet safety and security breaches.
Trust Wallet
Trust Wallet is a multifunctional mobile wallet with a user-friendly interface and a wide range of features, including the option to buy cryptocurrency directly within the app. It supports a variety of coins and provides a secure environment for managing digital assets. Trust Wallet is especially suitable for those looking for a comprehensive mobile wallet with extensive coin support and built-in purchase options.
Trust Wallet, as the official mobile app of Binance, has positioned itself as the prime choice for mobile users who seek a secure, efficient, and versatile crypto management platform. Its user-friendly interface, extensive asset support, and unique features designed for mobile users make it stand out as a top-tier crypto wallet.
Trust Wallet provides support for over 65 blockchains, allowing it to house a diverse array of over 4.5 million digital assets, including coins, tokens, and NFTs, offering the most extensive range of supported assets among its competitors.
Pros:
- User-Friendly Interface: Trust Wallet features a clean and scannable app interface.
- Extensive Coin and Token Support: Supports a vast range of over 4.5 million coins and tokens.
- Built-In Web3 Browser: Allows users to interact with decentralized apps (dApps) and blockchain games directly through the app.
- Interest-Earning Potential: Offers the option to earn interest on one of 12 different cryptocurrencies.
Cons:
- Binance Ownership: Trust Wallet is owned by Binance, which has faced regulatory scrutiny in the U.S.
- Limited Educational Resources: The wallet offers limited educational content on various coins and tokens.
Security
Security and vulnerabilities underscores a constant battle between innovations in security and the relentless ingenuity of hacking attempts in the world of cryptocurrency wallets . The Ledger breach in 2020 served as a stark reminder that even the seemingly most secure fortresses in the crypto realm can have vulnerabilities.
The Security Paradox
It’s ironic that Ledger, which prided itself on offering “the highest security standards”, was subjected to a breach. This incident is a clarion call that in security, guarantees are non-existent, and perfection is a perpetual pursuit. Although it should be made clear that it was not actually a Ledger wallet itself that was hacked, but Ledger’s e-commerce partner Shopify. As a result of the attack, the data of approximately 272,000 Ledger customers may have fallen into unauthorised hands, including personal information such as postal address and first and last name. Certifications and high-security claims are not foolproof shields but indicators of a commitment to fortifying walls.
Evolution, Vigilance, and Learning
In the decentralized crypto ecosystem, continuous learning, vigilance, and adaptability are non-negotiable. Whether one chooses to stick with entities like Ledger or explore other wallets on this list above (software and hardware wallets), the essence lies in embracing the awareness that vulnerabilities exist and cultivating a mindset of constant evolution and learning.
