This article takes a look at key points worth keeping in mind if you want to select best Bitcoin wallet out of hundreds of different options available.
Bitcoins are getting immense popularity these days. After the primary step of purchasing your first bitcoin, it’s time now to search for a safe and secure bitcoin wallet. When you start exploring Google to unearth some best cryptocurrency wallet options, you will find hundreds of different wallets.
Considering the variety, the only thing that remains is how to select bitcoin wallet that you actually need.
Popular Bitcoin Wallet Types
- Hot Wallets
This is certainly one of the most popular bitcoin wallet types that let users manage the funds and do cryptocurrency trading.
- Cold Wallets
Cold wallets are secure programs that enable users to hold the funds and perform transactions with reduced risk of hacking.
- Hardware Wallets
Hardware wallets serve as a specialized USB device that stores your funds and also helps you send those funds to different addresses.
- Light Wallets
Light wallets are basically applications that provide multiple benefits to the users including exchange options, trading desks and purchase of bitcoins.
No matter which particular bitcoin wallet you opt for, it’s important that you do proper research on your part to pick the safest wallet possible to store your crypto funds.
10 Traits that Separate Good Bitcoin Wallets from the Bad Ones
- Security
Knowing if the bitcoin wallet is safe or not is very crucial and should not be neglected at any cost. For web-based wallets, make sure to check if the site has a secure protocol. For it to have a safe protocol, it must be ‘HTPPS’ and not ‘HTTP’. In addition to that, also check if the wallet offers safe and powerful logins. Two-factor authentication is another important factor that needs your consideration before taking the final decision.
- Simplicity to Use
This aspect entails accessibility and ease of use. Especially, if you’re a new user, you should pay attention to the friendly user-interface and the capacity to withdraw your money from the wallet. When selecting a cryptocurrency wallet, examine its interface and the amount you’re permissible to work with. There are wallets that allow partial funds withdrawal only. Custodial exchange accounts are generally influenced by this restriction.
- Multisig
Does the wallet offer a multisig feature? This is an effective and widely-used method when to protect your bitcoin wallet from hackers. Multisig is a great aspect in the sense that it needs more than one key to approve a transaction. Take it as a lockbox where it takes two different parties with unique keys to open the box.
- Functionality
Before selecting a bitcoin wallet for yourself, be certain to check if it comes with the multi-services support. Also, check its tendency to exchange bitcoin or other digital currency options with your bank or other payment solutions such as PayPal.
- Private Keys
Keep in mind, if you don’t have access to the private keys for your wallet, you won’t be able to control them at all. This is possibly the most important factor when it comes to selecting a wallet for yourself. Being able to have access to your wallet’s private keys means you will manage your bitcoin transactions the way you like. Plus, you can move them at any time.
- HD Wallets
Privacy and security are the primary concerns that need your attention before picking a bitcoin wallet for your use. Always check if the wallet you’re about to purchase is HD or not. As Hierarchal Deterministic wallets always make use of unique addresses, it adds to the privacy feature of your wallet.
Presume how you will be using your digital currency too. Probably, a bitcoin wallet that is constructed particularly for mobile devices is what you would actually prefer. You can even download a full bitcoin client to your device provided that you’re a professional user. Other choices may involve a more accustomed approach with machines that you can use offline to hold your funds.
- Customer Support
This is one of the most important features. Great customer support is an indication of a great product. How quickly will the customer care help you, if you have any issues? Crypto market is believed to be one of the highly volatile markets and you obviously cannot wait days to get your problems fixed. Thus, always look for a 24/7 customer support that can resolve your concerns in real-time.
- Backups
When it comes to the bitcoin wallet, back up is something you can’t ignore. Does the product land with a way to back up your crypto wallet? Is the provided backup facility encrypted? Is the restoration process handy and simple to use? You should find out answers to these questions before loading bitcoin into your wallet.
- Is the Wallet Dependable?
Before selecting a bitcoin wallet, it’s important that you skim through different bitcoin wallet review websites and online forums to see if the wallet you’re about to pick would be a perfect choice. Even if you don’t find any relevant reviews, feel free to ask questions on those forums to gauge the reliability of the wallet. Bitcoin is certainly the most expensive digital currency and definitely, you can’t take its reliability for granted.
- Operating System
When choosing a bitcoin wallet, there are many questions that you would require to ask yourself. For instance, the operating system you would prefer to use to access your money. Today, you can find wallets that seamlessly work on a PC which are accessible for every prominent OS such as Linux, Windows and the like.
You can even find plenty of wallet options that run on mobile devices. Possibly the most preferred platform is the cloud-centric or web-based wallet. This type is the easiest to set up yet amazing in terms of functionality and security. They are certainly the most convenient and secure platforms as they allow users to get access to their coins from any device with a working internet connection and a good browser.
Other Considerations
In conclusion, if you’re a novice crypto user, the perfect way to select a dependable bitcoin wallet would be to go through the official bitcoin website. They correlate the different available options and also provide users with a detailed description of their exclusive features.
Moreover, you can find a number of bitcoin wallet apps on the Google Play Store and the Apple App Store if you’re thinking about investing in a mobile wallet.
You can narrow down your choices after going through available user reviews and neutral testimonials that can help you pick the right wallet for your coins. Keep in mind, not all bitcoin wallets are created equal, thus you should invest in a product that perfectly matches your requirements.
Jitender Jagga is a cryptocurrency and blockchain enthusiast that carries interest in writing on different areas of technology.