Best Bitcoin Wallets In 2024

The first step before buying and investing in Bitcoin is choosing a wallet for Bitcoin. Which is the best Bitcoin wallets? What is a suitable wallet for Bitcoin on Android, iOS, and desktop? Which wallet provides greater security? In this article, in addition to introducing the best Bitcoin wallets, we will address questions related to choosing a wallet for the BTC cryptocurrency. Stay with Crypto Hovel.

What is a Bitcoin Wallet?

A Bitcoin wallet (and any other cryptocurrency wallet) is a digital wallet that enables the storage, sending, and receiving of Bitcoin and other digital assets. This is done through a private key, with the wallet automatically utilizing a private key to sign transactions, ensuring enhanced security for the assets.

Crypto wallets, instead of holding physical money, store encrypted information necessary for accessing Bitcoin addresses and conducting transactions. Some other cryptocurrencies may also be stored in certain Bitcoin wallets. Additionally, these wallets may provide access to blockchain-based decentralized applications (DApps). Furthermore, some of them offer the capability to stake your cryptocurrency for profit.

Types of Cryptocurrency Wallets

Cryptocurrency wallets can be categorized into different classes based on various criteria. However, generally, wallets are divided into two main types: hot wallets and cold wallets. In the following, we will examine which cryptocurrency wallets fall into each category.

Hot Wallets

Software and online wallets are referred to as hot wallets. To create and use a hot wallet, you generally need to be connected to the internet. Hot wallets offer numerous advantages. Firstly, these wallets are free, and users can easily create and use them without incurring any costs. They are also accessible from internet-enabled devices such as mobile phones, tablets, and laptops. Furthermore, their user-friendly nature allows even novice users to quickly familiarize themselves with this technology and benefit from its features.

However, alongside these advantages, hot wallets face certain challenges. Hacker attacks and phishing, as serious threats, target this type of wallet. This reality underscores the need for robust security measures due to the high sensitivity of the information within them.

The use of hot wallets is not recommended for those seeking long-term investment due to these security challenges. For storing larger assets or for a more extended period, using cold wallets (which operate offline and without internet connectivity) may be a more suitable option. These wallets have a higher level of security against online threats.

In general, when choosing a Bitcoin wallet, you have several key options:

• Desktop wallets: Desktop wallets are installed on desktops and run on your computer. They are more secure than online and mobile wallets; however, they are still connected to the internet and offer less physical security than hardware wallets. They may not be suitable for individuals holding a significant amount of Bitcoin.
• Mobile wallets: Mobile wallets are often provided through dedicated applications on various operating systems such as iOS or Android. These apps provide features like wallet creation, balance viewing, and sending and receiving currencies. The significant advantage is that mobile cryptocurrency wallets offer more accessibility than desktop wallets.
• Centralized exchanges: Cryptocurrency exchanges that provide trading platforms also serve as a place to store Bitcoin and other digital currencies (not recommended for storage purposes).

Next, we will examine the best Bitcoin software wallets (desktop and mobile) and then explore cold wallets and storing cryptocurrencies on digital currency exchanges.

Best Bitcoin Software Wallets

These wallets are installed as software on your laptop or mobile device and can be accessed offline after installation. Below, we will introduce the best Bitcoin software wallets.

Electrum

Electrum is a software wallet accessible for Windows, macOS, Linux, and Android operating systems. The focus of the Electrum wallet is on speed and simplicity. Electrum is non-custodial, thus, you have complete control over the wallet. It is also open-source, allowing anyone to read its code and conduct a review or audit. The possibility to change the receiving address exists, enhancing your privacy. Additionally, it is feasible to modify the transaction fee within this wallet.

Key features of Electrum include:

• Two-factor authentication (2FA)
• Support for Bech32 address format (addresses starting with bc1)
• Integration with hardware wallets
• Legacy address support
• Lightning Network support
• Multisignature functionality

Samourai Wallet

Samourai Wallet is suitable for individuals who prioritize staying anonymous and value privacy highly. This wallet is an excellent choice for residents of countries where Bitcoin transactions are prohibited.

Key features of the Samourai wallet include:

• High security and private transactions
• Support for SegWit and Taproot
• Smart miner fee payment for transaction cost reduction
• Receiving and sending Bitcoin without revealing balance or transaction history using the PayNym system

Blue Wallet

Blue Wallet is a desktop wallet for macOS and a mobile wallet for Android and iOS. This wallet allows users to send and receive digital currency on both the Bitcoin and Lightning networks. Users can create one to several different wallets using this software.

Key features of Blue Wallet include:

• Offline transaction sending
• Support for hardware wallets compatible with the PBST standard
• Multisignature capability
• Transaction fee control
• Encrypting the main account by creating a password for access to a custom-built application.
• Sending multiple transactions together

Sparrow Wallet

Sparrow wallet is a desktop wallet available for Windows, Linux, and macOS operating systems. An interesting aspect of Sparrow is its ability to display more information than necessary. For instance, you can view the mempool status.

Key features of the Sparrow wallet include:

• Single and multisignature capabilities
• Connectivity to a wide range of servers: public servers, Bitcoin Core, and Electrum private servers
• Support for the PBST standard
• Compatibility with USB and air-gapped hardware wallets (such as COLDCARD)
• Full control over transaction fees
• Anonymous transaction sending and receiving
• Equipped with an internal Tor browser

Muun Wallet

Muun Wallet is a mobile wallet for Android and iOS. With this wallet, you can send and receive Bitcoin on both the Bitcoin and Lightning networks. Muun Wallet is non-custodial, putting control of your assets in your hands.

Key features of Muun Wallet include:

• Simple and beginner-friendly user interface
• Compatibility with the Lightning Network
• Generation of random addresses to prevent tracking and identification
• Backup via email and alternative backup options
• Emergency recovery kit
• Two-factor authentication
• Multisignature support
• Segwit address support

Trust Wallet

Trust Wallet is a software wallet available for both Android and iOS. It also offers a browser extension. Trust Wallet ensures the complete security of your assets, as personal information and private keys are stored on your device, giving you direct control over your assets.

Trust Wallet supports various blockchain networks, including Bitcoin, Ethereum, Binance Smart Chain, Litecoin, Solana, Polkadot, and Ripple. This allows easy management of your assets and maintaining a balance between different currencies.

Key features of Trust Wallet include:

• Adding tokens using smart contracts
• Access to decentralized applications (DApps)
• Staking multiple cryptocurrencies

Cold Wallets

A cold wallet, in its true sense, has no connection to online gateways. These hardware devices, meticulously designed for secure cryptocurrency storage, can act as a secure vault, safeguarding your assets. Also known as hardware wallets, many of them feature a USB interface, allowing quick and offline access to your assets without the need for an internet connection.

Cold wallets, especially for users seeking long-term and secure storage of their cryptocurrency assets, are an ideal choice. These devices boast high-security measures and serve as “long-term” accounts, accessible only to individuals possessing the necessary security information. Additionally, due to their compact size, these devices facilitate easy portability for users. Below, we delve into an examination of various types of cold wallets:

• Hardware Wallets: A hardware wallet is considered the best and most secure choice for storing Bitcoin and cryptocurrencies. It securely stores private keys in a physical device, believed to be the safest way to store any amount of BTC.

These wallets are immune to computer viruses as they are not constantly connected to the internet. However, to execute a transaction, you need to connect the hardware wallet to online software. Storing private keys offline enhances the security of your assets.

• Paper Wallets: A paper wallet represents the most basic and simple form of Bitcoin storage. In this method, you receive a paper or card containing your private key and Bitcoin address. However, this type of wallet differs from others because once these details are printed, you cannot retrieve a recovery phrase or private key again.

There is no need for a recovery phrase or the maintenance of private keys in this case. However, this simplicity can pose a challenge, as losing or having the paper or card fall into unfamiliar hands means losing access to your assets.

Best Bitcoin Hardware Wallets

Hardware wallets are considered the best and most secure choice for storing cryptocurrencies. In the following, we introduce the best Bitcoin hardware wallets.

Ledger Nano S Wallet

Ledger, with models such as Nano S, Nano X, and Nano S Plus, is recognized as the most popular hardware wallet. This wallet is designed in a form similar to a USB flash drive and, by connecting to your laptop, computer, or mobile phone, provides the ability to store and manage your cryptocurrency assets.

Ledger Nano S is one of the most well-known and best-selling hardware wallets for cryptocurrencies like Bitcoin, supporting close to 1500 different coins and tokens. It is an excellent option for traders with various currencies. The Ledger development team consistently expands the list of supported currencies. Having very high security while maintaining an affordable price is the reason for the high sales of Leger Nano S.

The Ledger Nano S wallet, similar to other cold wallets, securely stores your private keys inside the device, offline. For this reason, you won’t have any concerns about cyber attacks. After purchase and initial setup, you will set a specific PIN code and receive a 24-word recovery phrase (high-security) composed of words. In case of any issues with the device, you can regain access to your assets through this phrase.

Ledger Nano X Wallet

The title of the best hardware wallet for cryptocurrencies can be attributed to the Ledger Nano X wallet. This hardware wallet connects to the Ledger app on your computer or smartphone via USB and Bluetooth. Considered the second generation of Ledger’s hardware wallets, it has taken the place of the Ledger Nano S in the market.

The Ledger Nano X hardware wallet connects to almost any device, including Android phones, iPhones, and desktop computers, through its USB port and Bluetooth support. This wallet supports around 1800 types of tokens and cryptocurrencies.

The popular Ledger Nano X hardware wallet has a dedicated app to simplify the management of the user’s cryptocurrency account. Additionally, with the help of this app, you can add a separate wallet for each cryptocurrency on your device.

SafePal S1

In the realm of digital currency technology, SafePal S1 stands out as a hardware wallet for cryptocurrencies. This wallet, distinguished by its exceptional design with dimensions similar to a credit card, utilizes a touchscreen that provides advanced functionalities to users.

The touchscreen facilitates wireless communication with the SafePal application, enabling users to securely store and manage over 1,000 different types of cryptocurrencies with confidence in this wallet.

One significant feature of SafePal S1 is its adherence to the CC EAL5+ security standard. This standard ensures that your assets are protected against physical and software attacks, maintaining a consistently high level of security.

KeepKey Wallet

KeepKey is a hardware wallet introduced in 2015. This wallet stores your private keys offline, providing protection against viruses and vulnerabilities when connected to a computer. In addition to Bitcoin, you can store various cryptocurrencies such as Ethereum, Litecoin, Aave, Atom, and more in this wallet. KeepKey supports 348 blockchain networks and 7,225 cryptocurrencies.

Key features of KeepKey include:

• Support for LEGACY and Segwit addresses
• Multi-signature capability
• Support for Bech32 address format (addresses starting with bc1)

Bitcoin Storage in Centralized Exchanges

Cryptocurrency exchanges are considered centralized hubs that facilitate the buying and selling process of cryptocurrencies. For instance, Binance, recognized as one of the largest cryptocurrency exchanges, provides a platform for conducting transactions and trading cryptocurrencies. Here, users typically transfer their digital assets to the exchange wallet and engage in transactions.

Now, an important question arises: Does transferring assets to an exchange imply complete trust in it? In reality, by transferring assets to an exchange, the control of those assets falls into the hands of that particular exchange. In other words, you keep all your assets in a wallet whose private key is solely in the possession of the exchange. This situation can, at times, pose risks.

For individuals actively involved in continuous Bitcoin trading, centralized exchanges are often a suitable option as they require constant access to assets. However, if you have purchased Bitcoin for long-term holding, it is advisable to transfer your assets to your personal wallet and retain full control over the private key.

Additionally, some foreign exchanges do not offer their services to certain countries due to economic sanctions. If the intention is to store assets in such exchanges, ensure their operations comply with local laws and be aware of potential issues arising from sanctions.

Conclusion

Choosing a suitable wallet is one of the most critical stages in investment. In this process, awareness of fundamental aspects and the importance of selecting a secure wallet with a user-friendly interface and robust support is essential. When choosing the best Bitcoin wallets, one must consider all precautionary aspects. The wallet you choose should never disclose your private key to others, and it should be stored in a secure and reliable place. In general, it is recommended to use hardware wallets for storing substantial amounts of Bitcoin. Due to their superior security features and reduced risk of hacking, these tools are a suitable option for holding large volumes of cryptocurrencies.

Frequently Asked Questions