Today many people are showing interest in digital coins and worry. If you too looking for Bitcoin wallets, then you are in the right place.
This article was originally published at CoinCentral.com
Read the full article, titled The Best Bitcoin Wallet Reviews for 2018
The Different Types of Bitcoin Wallets
Before we get started, let’s go over the different types of Bitcoin wallets. There are some new terms coming up but don’t freak out! This guide is simple and easy so that even the cryptocurrency newbies will walk away experts.
There are three types of Bitcoin wallets: hardware, software, and paper. Hardware wallets are physical wallets with your private keys encrypted in them, software wallets are programs that live either on your computer or on the Internet, and paper wallets are physical documents with private keys.
For hard wallets, you’ll need a digital signature. Your digital signature is your ID. It’s how you prove that you own a specific private key without flashing your key around in public. Digital signatures verify ownership, keeping your private key safe and away from prying hands.
The advantage of hardware wallets is that your private keys are isolated from your computer, keeping your risk of theft near zero. Software wallets, on the other hand, are still connected to the Internet and expose you to some risk.
The only potential downside of a hardware wallet is that it costs money. Most software wallets are free. While both wallets protect your bitcoins more securely, some users would rather pass on the extra cost.
If spending money gives security to your coins you should do it rather than using the free software wallet route.
Bitcoin Hardware Wallets
Without a doubt, Bitcoin hardware wallets are the most secure type of Bitcoin wallet. What differentiates hardware wallets from software wallets is that when they are plugged out—in “cold storage.”
This means your hardware wallet is disconnected from the Internet and impossible to touch. Hackers, Trojans, and other malware can’t get to anything in cold storage.
Online Bitcoin Wallets
Now that we’ve gone over the hard(wallet) stuff, let’s jump into online wallets. Online wallets run on the cloud, so users can access them from virtually any computing device anywhere. These wallets are very convenient to access and easy to set up in comparison to hard wallets but are ultimately controlled by a third party. While these third parties are constantly improving security and taking proactive measures, there’s still an inherent risk.
With hardware wallets, you trade flexibility for security. The tradeoff with online wallets is security for flexibility. You can’t have it all.
The best bitcoin wallets
Here are some good Bitcoin wallet providers, look no further.
| Wallet | Wallet Type | Security | Mobile App | Desktop Client | Price |
|---|---|---|---|---|---|
| Ledger | Hardware | Great | Yes | Desktop Client | €58 |
| TREZOR | Hardware | Great | Desktop Client | €89 | |
| keepkey | Hardware | Great | Desktop Client | $129 | |
| EXODUS | Client | Good | Yes | Free | |
| Jaxx | Online | Good | Yes | Yes | Free |
| Coinbase | Online | Good | Yes | Free | |
| Airbitz | Mobile | Good | Yes | Free | |
| mycelium | Mobile | Good | Yes | Free | |
| BLOCKCHAIN | Online | Poor | Free |