If you’ve decided to join the crypto revolution then you will need to know where you can store your digital currency.
When buying bitcoin or other coins from an exchange, you will usually be able to store them there safely. However, some people like to transfer their bitcoins to another wallet to have more control and peace of mind.
You will come across the words hot and cold in reference to bitcoin wallets, so let’s clear up the terminology before proceeding.
A hot wallet is connected to the internet to send or receive bitcoin; a cold wallet is not. Think of a cold wallet like a USB stick that can be connected to a laptop, loaded with data, then disconnected.
Cold storage is considered more secure, but some people like to keep some bitcoins in a hot wallet they can use for day-to-day purchases, gambling in bitcoin casino online, or trading.
Here we detail five of the best wallets to store your bitcoins.
Trezor produces some of the most popular cold wallets on the market, and their name is synonymous with bitcoin storage.
Their Model T range is a second-generation wallet that feels like a smartphone in many ways. It offers a touch screen, making it easy for beginners to use and can access certain third-party exchanges directly.
It can be connected to a smartphone or desktop computer and supports over 1,500 currencies if you wish to branch out.
Exodus is a hot wallet that is straightforward to use. One of its special features is the ability to swap from 100+ cryptocurrencies.
While ideal for beginners, advanced users may not enjoy the fact it is a closed wallet, so it is up to Exodus to ensure safety.
When it comes to cold wallets, Ledger is possibly Trezor’s main competitor. What makes their Nano X wallet desirable is a reduced-price tag and ease of use.
Simply connect the device via Bluetooth or USB and transfer your cryptocurrency – up to 1,500 types are supported. Be aware there have been hacks in the past, but private keys have not been affected.
Electrum is a free hot wallet that makes a great starting point when it comes to bitcoin storage. The company has been around since 2011, putting it at the vanguard of blockchain technology.
Its wallet is simple, and therein lies its desirability for new users.
However, advanced users do have options to personalize the experience. Users can also set their preferred level of security, such as 2-factor authentication and altered seed phrases.
Mycelium is a mobile-only hot wallet ideal for bitcoin storage. Like Electrum, it is open source, though some beginners might find it a little confusing.
The user interface is nicely streamlined, though, and there is a built-in exchange for convenience. Electrum was also one of the earliest providers of bitcoin wallets and has plenty of experience in storing cryptocurrency.
There are pros and cons of both hot and cold wallets, so many are electing to get the best of both worlds.
Some crypto users keep a larger portion of their altcoins in a cold wallet, so it is completely cut off from the internet and safe while retaining a day-to-day amount in a hot wallet.
This way, you can combine the security benefits of cold wallets with the convenience of hot storage.