Cryptocurrency is undoubtedly coming into the mainstream. With Bitcoin’s market cap alone being over $526,442,054,889 USD at the time of writing, it’s hard to deny the digital currency is a legitimate asset.
But blockchain technology facilitates so much more than just an asset or a store of value. The creator of Bitcoin, Satoshi Nakamoto, envisioned a peer-to-peer payment system where transactions of value could be made without trust or physical assets.
That being said, whether you are buying Bitcoin as a way to store value, as an investment, or a way to make anonymous payments, you will need a Bitcoin wallet. With more and more entering the market every day, Bitcoin.com.au decided to take a look at the best Bitcoin wallets.
What is a Bitcoin Wallet?
Wallets are an essential part of a functioning cryptocurrency. They are a way for users to access and interface with the blockchain. Wallets allow users to view, buy, sell, send and receive the cryptocurrency they own. In many cases, a wallet is exclusive to a cryptocurrency. This often means you will need one for your Bitcoin, a separate one for your Ethereum and so on. Of course, certain apps and hardware wallets allow you to view all your wallets at once.
Each wallet has its own private keys and public addresses. If you don’t have access to these, you don’t truly own your Bitcoin. For example, Coinbase wallets might be easy to use, but wallets on exchanges that don’t give you full control of your digital assets. If you buy Bitcoin on an exchange and keep it in the on-exchange wallet, and that exchange gets hacked or goes down, your Bitcoin will disappear with it. It’s essential to have your keys or addresses as well as your mnemonic passphrase. With these things in your hands, you have full control of your cryptocurrency and can access it anywhere.
Your private key can be seen as a password, that only you should know. It gives you access to your assets on the blockchain. Your public Bitcoin address is what you use to send and receive Bitcoins. Originally, Bitcoin users had to generate new addresses for each transaction however, today almost all wallets are an HD wallet or a Hierarchical Deterministic wallet. This is essentially a wallet that uses a hierarchical tree-like structure of private/public addresses (or keys). This addresses the issue of users having to generate new addresses each time they want to make a Bitcoin transaction.
There’s a range of different wallet types that fall into different categories, some of which we will look at below. Each has their own pro’s and cons and the right one for you will depend on your circumstances, and what you intend to do with Bitcoin. With that said, here are the best Bitcoin wallets, depending on your needs.
Best Online Wallet
Online wallets, as the name suggests, are platforms for you to store your digital assets in a completely online environment. This is known as a hot wallet. These wallets are sometimes on an exchange, such as Bitcoin.com.au, or have a function for you to buy, sell and trade cryptocurrencies right from the wallet.
Bitcoin.com.au – Free
Bitcoin.com.au is a leading Australian Bitcoin exchange and wallet provider. It offers a secure, easy-to-use, and feature-rich wallet that is perfect for both beginners and experienced users.
Reasons why Bitcoin.com.au is the best online wallet:
- Security: Bitcoin.com.au uses industry-leading security practices to protect your funds, including cold storage, 2FA, and a 24/7 support team.
- Easy to use: Bitcoin.com.au is very easy to use, even for beginners. The interface is clean and simple, and the wallet is very intuitive to use.
Here are some additional details about Bitcoin.com.au:
- Established in 2014: Bitcoin.com.au is one of the longest-running Bitcoin exchanges in Australia.
- Trusted by over 1 million users: Bitcoin.com.au is trusted by over 1 million users in Australia and around the world.
- Award-winning: Bitcoin.com.au has won several awards for its security, customer service, and innovation.
If you are looking for a safe and secure place to store your Bitcoin and other cryptocurrencies, then Bitcoin.com.au is the perfect choice for you.
Best Overall Wallet
Exodus – Free
Exodus is a user-friendly, secure, and feature-rich Bitcoin wallet that is perfect for both beginners and experienced users. It offers a wide range of features, including staking, exchange, DeFi, NFTs, and security.
Exodus allows users to stake their Bitcoin and other cryptocurrencies to earn rewards. Staking is a process of locking up your cryptocurrency in order to help verify transactions on the blockchain. In return for locking up your cryptocurrency, you will earn rewards in the form of new tokens.
Exodus also allows users to swap between different cryptocurrencies directly within the wallet. This makes it easy to diversify your portfolio and take advantage of price movements in different cryptocurrencies.
Exodus gives users access to decentralised finance (DeFi) applications. DeFi is a new financial system that is built on top of blockchain technology. DeFi applications allow users to lend, borrow, and earn interest on their cryptocurrency without the need for a third party.
Exodus also allows users to store, manage, and trade non-fungible tokens (NFTs). NFTs are unique digital assets that cannot be replaced. They can represent anything from artwork to in-game items.
Exodus uses industry-leading security practices to protect your funds. Your private keys are never stored on Exodus’ servers, and they are protected by a 256-bit encryption. Exodus also offers 24/7 customer support in case you need help with anything.
Best Wallet for Security
Ledger Nano X – $250 AUD
Ledger Nano X is a hardware wallet that stores your Bitcoin and other cryptocurrencies offline, making them immune to online threats. It is the most secure way to store your cryptocurrencies.
It is a small, portable device that connects to your computer or mobile device via USB or Bluetooth. When you want to access your funds, you need to physically interact with the device to confirm the transaction. This adds an extra layer of security that makes it very difficult for hackers to steal your coins.
Ledger Nano X is also very easy to use. Even if you are not a tech-savvy person, you will be able to set it up and start using it in minutes.
If you are serious about protecting your Bitcoin and other cryptocurrencies, then Ledger Nano X is the best security bitcoin wallet on the market.
Here are some of the features that make Ledger Nano X the best security bitcoin wallet:
- Cold storage: Your Bitcoin and other cryptocurrencies are stored offline on the Ledger Nano X, making them immune to online threats.
- Security: Uses a variety of security features to protect your funds, including a 24-word recovery phrase, a PIN code, and hardware-based security.
- Easy to use: Very simple and easy to use, even for beginners.
- Versatile: Supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and many more.
If you are looking for the best security bitcoin wallet, then Ledger Nano X is the perfect choice for you.
Best Hardware Wallet
In general, Bitcoin hardware wallets are the most secure forms of crypto storage. Known as cold storage, hardware wallets usually store your crypto in an offline reserve, making it hard for malware attacks to get through. Hardware wallets are physical devices with sophisticated security measures so they will have a price tag, but for those who are buying large amounts of Bitcoin, the price is worth the added level of security. We have mentioned the Ledger Nano, but there are a few alternatives when it comes to hardware wallets such as the Trezor and KeepKey wallets. Typically, a hardware wallet supports a huge number of cryptocurrencies, for example, the Ledger Nano supports over 1000 coins including BTC, Bitcoin Cash, Dash, Ripple and Litecoin.
Trezor Model T Wallet – $332 AUD
The Trezor is the main alternative to a Ledger X, and was one of the first hardware wallets to hit the market. Its updated model, the Model T, is a relatively new wallet and the latest in crypto hardware storage. Trezor is a multi-purpose, multi-digital asset security device used to secure Bitcoin transactions along with a huge range of altcoins including Ripple (XRP) and Litecoin. It is also a powerful password manager and a two-factor authentication device. The Trezor should satisfy the most serious crypto investors.
Best Desktop Wallet
A desktop wallet is similar to an online wallet, however, you have the wallet’s software downloaded onto your computer as an application. Typically, these have good user interfaces and decent security. The best desktop wallets will allow you to export your private keys and encourage you to store your keys offline in “cold storage”.
Electrum – Free
Electrum wallet is one of the most popular open-source software wallets on the market. It has the ability to be compatible with some hardware wallets such as the Ledger Nano and is functional completely offline. Electrum’s servers are decentralised which means there’s no downtime. The wallet has a bunch of other technical features which make it fast and secure such as multi-signature functionality to split the permission to spend your coins between several wallets.
Best Mobile Wallet
A mobile wallet is similar to a desktop wallet, only it’s a mobile app on your mobile device, rather than your desktop. Like all wallets, mobile wallets allow users to interface with the Bitcoin network and see the amount of Bitcoin they own.
Mycelium – Free
Mycelium was awarded the “Best Mobile App” award by Blockchain.info in 2014. It has “Watch Only” accounts, which are wallets stored without their corresponding key, so there’s no chance of it being stolen. Mycelium makes it allows users to access and use Bitcoin whether it’s on an iPhone or Android device. The Mycelium interface is known to be a little more complicated than other entry-level wallets but it has a range of features that experienced users of Bitcoin will appreciate. With “bank-grade security” for its mobile app and integrations from third parties such as Trezor, Mycelium is a great mobile wallet, for Bitcoin users on the go.
These Bitcoin wallets are some of the best in their categories. Each has their own pros and cons and Bitcoin users will choose a wallet on their individual needs. Regardless of choice, a Bitcoin wallet is essential to buy bitcoin, store it securely and transfer it.