So you have finally decided to invest in Bitcoins, registered yourself on a cryptocurrency exchange and bought some bitcoins. What next?
Its pretty obvious that you can’t make huge profit of bitcoins overnight, you will have to keep them with at least for a short period to get a decent profit.
But are your valuable cryptos safe on exchanges?
The answer is no. Cryptocurrencies are not completely safe on exchanges. Your cryptos could be stolen hacked or even locked.
Lately, cryptocurrency exchanges have been growing as targets for hackers.
Hackers know that exchanges are mostly loaded with private user information, and more significantly, bitcoin that can be virtually instantly stolen and transferred away to an anonymous bitcoin wallet.
So how to safely store your cryptocurrencies?
This is where Bitcoin Wallets come at your aid.
What is a Bitcoin Wallet?
A bitcoin wallet is not really a proper storage space! Rather, it’s more than that and including a passkey or a code, the cryptocurrency is stored in as a digital code.
All the sending and receiving concerned with the digital coins are carried out through the bitcoin wallets.
Moreover, such cryptocurrency wallets are available with the currency buying space itself or else a third-party wallet might be needed.
Bitcoin, unlike most conventional currencies, is a digital currency.
Hence, the approach to this kind of currency is completely different, exspecially when it comes to acquiring and storing it.
As Bitcoins does not exist in a tangible shape or form, they can’t physically be stored anywhere.
Rather, it’s the private keys utilized to obtain your public Bitcoin address and sign for transactions that need to be securely collected.
A combination of the recipient’s public key and your private key is what makes a Bitcoin transaction possible.
Types of Bitcoin Wallets
Crypto wallets are totally different than the regular e-wallets. Bitcoin’s itself is a very complicated system and selecting the right purse requires effort and research.
Let us differentiate between different types of crypto wallet first to find the best choice for storing your Bitcoin.
- Online Wallets
Online wallets basically work on the cloud. Hence, they can be located from multiple devices with an internet connection. Similar to every cloud service, online wallets are more practical and user-friendly.
Yet, they are also more sensitive to theft and require extra layers of security. Even so, you have to be very careful about choosing the online wallet provider, as they have an extensive scam history.
- Desktop Wallet
Desktop wallets is another engaging choice which is much protected than online wallets.
They are usually downloaded and installed on the PC or laptop and are available from the installed device.
Still, if your computer is affected by a virus, gets hacked or encounters external damage, there is a possible chance to lose all your funds.
- Hardware wallet
Hardware wallets save the users private keys, data on a device, often a USB drive.
They allow the user to make online transactions. Yet, most of the time they are offline and that is one of their advantages.
Several manufacturers make hardware wallets that are compatible with various web interfaces.
Hence, total features of such wallets depend on wallets integrations.
Hardware storages are also beneficial because of their capability to send and receive currencies by simply plugging them into an online device and signing in.
Therefore, hardware wallet is the most expensive, yet one of the safest options.
- Paper wallet
Paper wallets at present are the most secure alternative to save your digital assets.
A paper wallet is a physical copy of your public and private keys generated and can even be a printed sheet of paper.
You can transfer funds by moving the money to wallet’s public address, and you can withdraw your currencies by inserting your private keys or by scanning the QR code availed on the paper wallet.
- Mobile Wallets
Mobile wallets are considered as your phone applications. They are very convenient since they can be used as a means of payment even in material stores. All you will be asked to do is to install an application on your phone and start an account.
While there are a large variety of crypto storage solutions, a mobile wallet, most probably, is the most engaging option due to its simplicity and convenience.
All you need to do is to download an application of your preference and go through a quick registration process.
Also, mobile wallets are held to be much safer than cloud wallets.
The only risk linked with mobile wallets are losing your assets in case your phone breaks down or encounters a security breach.
Top 5 Bitcoin Wallets for Android
Mycelium Bitcoin Wallet
In the present crypto universe, a very few companies have been able to stay as successful for a long time as Mycelium.
Mycelium is an efficiently integrated bitcoin wallet that focuses on key factors such as hardware, software, and security.
MyCelium wallet is particularly designed for Bitcoin having said that, the wallet cannot store any other cryptocurrencies as of now.
Mycelium also allows it’s users to add a PIN code to assure more security to your wallet.
The wallet also supports an address book, so that you can save in some contacts for making quick transactions.
Transferring bitcoins is easy on Mycelium, and overall, this is one of the most recommended Bitcoin wallets that you can use on your Android device.
- The wallet is well known and well established
- Mycelium offers several account types for users based on their preference
- Transactions are really fast and fluid.
- Has no desktop version
- Optimization not great on iOS devices
- Could be a bit tough to handle if you’ve never used a Bitcoin wallet before.
Coinomi Android Wallet
Coinomi Wallet is an excellent choice for users who want to store multiple coins at the same time.
Coinomi was created in the year 2005, by the year 2011 the wallet gained growth and made it into the list of the best cryptocurrency wallet in the market
The wallet is defined by excellent security features such as wallet encryption, total anonymity, and one-time backup.
So it could definitely come as one of the very best Bitcoin wallets for both Android and iOS devices.
The app is free as you only need to pay to miners. It also features its own exchange.
- Offers high levels of secrecy and security.
- Quick and easy means to trade currencies through built-in integrations.
- The private keys that are associated with your Coinomi wallets are saved on your personal device only.
- Even if your phone is stolen or lost no one will be able to access your accounts without your password.
- The wallet can be completely restoredor migrated to a new device using your seed phrase.
- You cannot buy cryptocurrencies straight with fiat through the Coinomi app.
- As of now, Coinomi is only available for Android phones.
- Some of Coinomi’s code is available to the public as open source.
Jaxx Mobile Wallet
Jaxx is a crypto wallet which is open both for Android and iOS. Along with these mobile versions, Jaxx also has a Google Chrome extension.
The wallet was launched into the market four years ago and was developed by one of the co-founders of Ethereum.
At present, Jaxx shoulders almost 70 altcoins. It has a pretty beginner-friendly interface which is why Jaxx is expressly popular among inexperienced traders.
There is a static fee applied to every transaction which would depend on the specific cryptocurrency.
Jaxx doesn’t impose you anything since all transaction fees are transferred directly to the network.
- The best wallet for beginners.
- Offers a wide range of cryptocurrencies, including the world’s largest.
- Highly accessible with mobile and desktop compatibility and seamless integration across all platforms.
- Bad press reports lately due to certain security concerns.
- A lack of 2-factor authentication
Electrum Wallet for Bitcoin
One of the best bitcoin wallets in the current cryptocurrency market is, undoubtedly, Electrum Wallet which stands out with its great security, faultless reputation, speed, and comfort.
While being considered the founding father of crypto wallets, Electrum wallet has mobile applications for most popular operating systems.
- Widely used platform.
- Very fast and easy to set up.
- Good privacy features.
- Integration with hardware wallets for added security.
- Not typical for beginners.
- Only allows bitcoin.
Infinito Wallet is the prime universal cryptocurrency wallet in the world which presents easy and quick application access with maximum security and 24/7 supported and regularly updated gateway to the blockchain system, enabling fast transactions.
It also aids the user by collecting the list of frequent address for hassle-free transactions and even includes messages with transactions for improved record keeping.
It is available on both Android and ios devices.
Infinito Wallet Android is reasonably safe and secured as your cryptocurrency data on servers.
Risk of losing your crypto assets if your phone is lost or damaged, Risk of mobile viruses and malware.
Mobile wallets are one of the most convenient types of wallet for fast and easy trading.
Most mobile wallets usually have an accompanying desktop app, hence the same security rules apply here.
However, keep in mind that mobile wallets are the least secure form of Bitcoin wallets comparing to hardware wallets.
This is mainly because mobile devices often tend to get stolen, lost and gets damaged.
If you retain your Bitcoins in a mobile wallet, it means that the private key is also stored on the device, and therefore if the device is ruined or stolen you won’t be able to access your coins.
Nevertheless, you can assign a backup for your wallet by utilizing the 12-24 word seed phrase send to you when you first install the wallet.
That’s why it is necessary to keep this seed phrase in a safe place and out of anyone’s reach.
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