Today, people are getting very much excited to invest their money in cryptocurrencies. Cryptocurrency, like Bitcoin, has gained a lot of market capitalization, which makes it a top choice among investors. There are many cryptocurrency exchanges available nowadays that allow investors to trade with cryptocurrencies. Although these exchange platforms have gained some reputation since they started their journey, it is not recommended to put your money on them, as they are under the risk of getting hacked. A cryptocurrency wallet is a better option to secure your funds. In this guide, we will look at some of the best Bitcoin wallets in 2020.
These cryptocurrency exchanges hold vast amounts of cryptocurrencies and are in the target by hackers. The most famous is the theft on the Mt Gox exchange that occurred in 2013 in which about 850,000 Bitcoin were stolen, having a $450 million worth. A cryptocurrency wallet can provide both storage and security for your cryptocurrencies. Today, there are many websites where you can compare cryptocurrency wallets.
A Bitcoin wallet has some similarities that an online bank account has. As we cannot separate blocks from a blockchain and therefore cannot store these blocks anywhere. However, this blockchain is stored as secure digital codes, also called as private keys. These secure digital codes represent the public digital code’s ownership, named as a public key, that is used to access currency addresses. This currency address is the only information stored in your Bitcoin wallet. Thus your Bitcoin wallet stores the address to your Bitcoin, which is a way to access your virtual currency. Once the private key you have matches with the public key, you can have access to your virtual currency.
Cryptocurrency Wallet Types And Best Bitcoin Wallets
Several wallet types are used for cryptocurrency storage. Cryptocurrency wallets are available in various formats, designed for every kind of devices. A paper can also be used your cryptocurrency to provide storage without a digital format. In general cryptocurrency wallets are categorized into three categories hardware, software and paper. Each category consists of several cryptocurrency wallets.
These types of wallets are dedicated devices that adds an additional layer of security for cold storage options like the paper wallets. When you use a paper wallet, your funds remain secure until you use a personal computer– but if the personal computer is compromised, then your cryptocurrency accounts can be hacked. Bitcoin wallets in this category are as follows.
It is a hardware wallet used to store several types of cryptocurrencies, including Bitcoin, Ether and Litecoin. It is considered as the safest devices. A Trezor wallet will cost you $99, which makes it an ideal option for anyone holding currency in a large amount.
2 Ledger Nano S
It is an entry-level wallet, which is very popular among beginners. This wallet is smartcard-based and contains a USB. Its cost is less than $65, and anyone can have access to their funds without any connection to the computer.
Unsurprisingly, these wallets are related to computer software. Software wallets are available for desktops, mobiles and online. While desktop wallets are software programs that store cryptocurrency on a local computer or laptop, the mobile wallets are available in the form of an app for both android and iOS users. Some of the software wallets available today are.
1 Atomic Wallet
An atomic wallet is a non-custodial solution and can store up to 300+ top coins that can be managed with a very user-friendly interface. The wallet is available for various OS: Windows, Linux and OS, with support for both iOS and Android users.
Another popular wallet available in the software category is Exodus wallet. It has storage for significant cryptocurrencies and allows you to exchange them very easily and quickly. At present, it has no support for mobile devices.
These wallets can be referred to as a printed piece of paper having a cryptocurrency address and a QR code from which you can access your private key. Paper wallets are secure as they don’t have any access through the internet, which reduces any risk of hacking. There is only one wallet available in this category.
1 Bitcoin Paper Wallet
In this article, we have provided some of the best Bitcoin wallets. We have also seen that cryptocurrency exchanges have chances of getting hacked, so it is not recommended to leave your fund in these exchanges. Having a cryptocurrency wallet is a better option for the security of your funds. These wallets are also categorized into three categories hardware, software and paper wallets. Among these wallets, none is 100% secure to store your cryptocurrency. However, a Bitcoin paper wallet can provide more security than others as it cannot be accessed through the internet, thus keeping the hackers at a bay.