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Best 9 Bitcoin Wallets to keep your cryptocurrency safe

Are hardware cold wallets secure? 

Published: July 3, 2021 By Darina Shramko

Cryptocurrency – trend 21st Century

Image source - Shutterstock

Do you want to know what cryptocurrency as well as to understand a complex blockchain system in a few minutes? Are you wondering why Bitcoin is in such demand?

Congratulations, you are in the right place at the right time! In just a few minutes, I will explain complex terms to you in simple words and tell you what the phenomenon of cryptocurrency is all about.

Have you noticed how quickly the payment system began to improve with the advent of the Internet? Cash replaces by non-cash card payments, and later by contactless payments using phones that support NFC. And now humanity is on the verge of a new era - the era of cryptocurrency!

At first, the world was distrustful of the concept of cryptocurrency, but now more and more countries are popularizing electronic money.

What is bitcoin, and why can a modern person no longer do without cryptocurrency? Let's figure it out today in this article.

This article also:

  • a practical guide for people wishing to understand what cryptocurrency is
  • a practical guide for financiers, economists, and investors
  • a practical guide for people looking to sell or buy cryptocurrency safely
 

Disclaimer:

The article discusses the technologies that should be used to ensure the security of crypto wallets. All information is provided only to inform you about what are cryptocurrency and blockchain, and how you can secure your crypto wallet from hacking.


What is a cryptocurrency, and why is it so popular?

They started talking about cryptocurrency back in 2011 when Forbes magazine published an article “Crypto Currency” about the Bitcoin system.

There was certainly new to most people. The concept of electronic money has generated mistrust, apprehension, and misunderstanding. People from various information sources bombard with strange terms like “blockchain”, “crypto-wallet”, “coin” etc. Wait-wait... With so many incomprehensible words, people are confused.

To dispel all the myths, let's figure out together with you what kind of beast this is - cryptocurrency.

The first thing you need to know about cryptocurrency is that it is not at all the money that you have in your wallet. The idea of a cryptocurrency considers revolutionary since banks are not needed to store it. That is, “non-electronic money” is a decentralized product. It means that cryptocurrency works everywhere - that is, it is automatic.

Money comes directly from the seller to the buyer, and the users themselves serve this system.

As you might have guessed, Bitcoin is a type of cryptocurrency. There are many such types today: Dogecoin, Ethereum, Litecoin, etc.

Since there is a cryptocurrency, it means that there is a system for servicing this concept. As I mentioned earlier, the system serves by users, but what is this system, and how does it work?

So, the cryptocurrency service system is called a blockchain.

In scientific terms, a blockchain is a chain of blocks of transactions in a distributed ledger. However, not everything is as complicated as it seems.

The blockchain has been developed for ten years, has undergone modifications, and has caused heated discussions of programmers and economists. It is impossible to understand so quickly what a blockchain is, but I will try to explain its concept in simple terms.


What is blockchain and how does it work?

To better understand the blockchain system, resourceful Internet users and bankers have come up with many analogies.

I will try to explain to you the principle of the blockchain using the example of a diary.

So, imagine that you are keeping a personal journal, writing down information about how your day went, what you ate for breakfast, and how you loaned $100 to your friend Bob. As long as the diary locates at your home, there will be no problems, because you can show the entry to Bob at any time and demand your money back.

But what happens if Bob somehow takes your diary and replaces a couple of lines about debt? You can no longer ask a friend for a refund.

To prevent the correction of your entries, you decide to encrypt what you write in the diary. Then Bob or anyone else will not be able to change what you write. To do this, you use a program that turns your text into a set of incomprehensible characters. Each new word will have a unique character set, and it will be impossible to replace old entries.

So, you can still ask Bob for your $100 because you have proof: a record of the debt in encrypted form, which cannot be hacked with a selection of characters or in any other way.

Another analogy for how blockchain works is a family tree. You can't change the first and last name of your great-grandmothers, yes? This data stored in the archives. Then, new unique data add - the name of your grandmothers and parents. They are links in the same chain - like a family tree. Removing one relative from the tree - and the whole system violate!

The blockchain works on the same principle: users create wallets to store electronic money, and each wallet has its unique identifier. All transactions are stored unencrypted, but the wallet owners themselves cannot identify them.

The blockchain concept makes the cryptocurrency system anonymous and reliable because it is impossible to find out the data about the wallet owner or fake an identifier. Changing at least one symbol of the old entry will break the entire system. Today, there is no such computing power in the world that could change the chain in millions of computers at the time.

Where cryptocurrency is it stored? Like any other currency, cryptocurrency store in your wallet. Only the wallet is not simple, but electronic. 

Hmm…an electronic wallet? How safe is it, and can you trust him with your money - you will get the answer to this question right now!


Reliable wallets for storing cryptocurrency

So, we figured out the blockchain system. So how do you get started using bitcoin? To do this, you need to create a crypto wallet where you will receive a unique identifier. You can store dollars, euros, and other currencies on your crypto-wallet; buy, sell or exchange cryptocurrency.

Important: under no circumstances tell your wallet data to anyone! Knowing your password, an attacker can gain access to your wallet and use your money.

You can generate an infinite number of IDs and use them for every new transaction. There will only increase anonymity and temper the ardors of curious users.

The hardest thing is to choose a reliable crypto wallet for storing electronic money. I have analyzed the most popular wallets and collect the top-9 crypto wallets that you can trust with your money.

Coinbase

Coinbase logo

Image source – coinbase.com

Our rating was opened by the Coinbase cryptocurrency exchange - reliable and easy to use. Users can deposit or withdraw bitcoin from their wallets, connect bank accounts and transfer dollars to an investment account.

This cryptocurrency exchange is perfect for beginners who are just starting to get acquainted with electronic money.

From the pleasant bonuses: you can use the Coinbase Earn function, which transfers cryptocurrency to your account in exchange for watching a video or taking a quiz.

However, there are also disadvantages - high fees for money transfers. Well, just like any other service that supports an application programming interface (API), Coinbase can experience system failures that make it difficult to sell or buy cryptocurrency.

Advantages:

  • The most popular cryptocurrency exchange on the market
  • Great for beginners, has an intuitive interface
  • It is possible to get cryptocurrency by watching a video or passing a quiz
  • Safe and reliable

Disadvantages:

  • Possible system failures
  • High fees for money transfers

Trezor

Trezor logo

Image source – trezor.io 

Trezor is the undisputed leader in secure crypto devices. The wallet supports multi-factor authentication and guarantees 100% security. There are two versions of the wallet: Trezor One White and Trezor Model T.

Trezor One White costs about $60 and supports over 1000 digital coins.

The Trezor Model T is a more expensive version of this wallet that will set you back around $180. In return, the Trezor Model T offers an extended interface, improved functionality, and other pleasant bonuses.

The Trezor hardware wallet keeps your money offline. All you need to do is remember your username and PIN code Trezor will do the rest for you.

Advantages:

  • Supports multi-factor authentication and guarantees 100% security
  • There are two versions of the wallet at different prices
  • Supports over 1000 digital coins
  • Trezor has a small screen that allows you to use a secure connection

Disadvantages:

  • Not detected

Ledger

Ledger logo

Image source – ledger.com

As with Trezor, this wallet has two versions: Ledger Nano S and Ledger Nano X.

Wallets keep your savings safe on an offline device. Ledger resembles a small USB device that plugs into your computer to store your finances. The device does not deteriorate and does not lose its presentable appearance because it creates stainless steel.

Ledger Live add-on software allows you to check balances and conduct cryptocurrency transactions.

Ledger supports over 1800 coins! An impressive number compared to Trezor's capabilities, don't you agree? Thanks to Ledger, you can go beyond Bitcoin and choose a different coin for your investment.

The Ledger Nano S price at $60, and the Ledger Nano X is $120.

Ledger supports up to 27 currencies and six applications simultaneously, and the improved version supports up to 100 applications simultaneously.

Both wallets protect by chips that use in passports or credit cards.

Advantages:

  • Supports over 1800 coins
  • Wallets protect by chip
  • The device has small dimensions

Disadvantages:

  • There is no possibility to supports all currencies at the same time on one device

SoFi

SoFi logo

Image source – sofi.com

SoFi is a financial organization that offers investment, personal, and student loans.

Thanks to the SoFi Invest, you can buy, sell and store cryptocurrency. To open your account, you need to deposit $10 USA. Pay attention to the commission: when buying cryptocurrency, SoFi charges up to 1.25% of the transaction amount.

Unfortunately, the SoFi wallet has one significant drawback - it supports only four currencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

To summarize, I can say that SoFi is ideal for beginners who want to understand how cryptocurrency works. The user interface is intuitive. However, power users have noticed that the SoFi platform and trading system are limited.

Advantages:

  • Intuitive interface
  • Providing investment, student, and personal loans
  • Ideal for beginners

Disadvantages:

  • Supporting only 4 currencies
  • Limited trading system

Robinhood

Robinhood logo

Image source – robinhood.com

Robinhood was planned as a free stock trading platform but has expanded its capabilities with the popularization of Bitcoin.

You can use Robinhood as a wallet or cryptocurrency exchange.

Robinhood is available as a mobile application and a full desktop version. Perhaps the main advantage of this wallet is that it is free. There is also no transaction fee whatsoever.

At the moment, Robinhood users can transact with bitcoin and six other currencies.

The only thing that can confuse is system failures that have already happened more than once.

Advantages:

  • Robinhood is free
  • No transaction fees
  • Robinhood can use as a wallet or cryptocurrency exchange
  • Robinhood is available as a mobile app and a complete PC program

Disadvantages:

  • Possible system malfunctions
  • There is no possibility of withdrawing and transferring coins from other wallets

Mycelium

Mycelium logo

Image source – mycelium.com

It's a popular crypto wallet for Android or iOS device users.

Initially, this wallet was advertising as a good wallet for newbies. However, after analyzing the Mycelium interface, I concluded that this wallet was cause difficulties for people who are just getting acquainted with the principles of cryptocurrency.

Important: I do not recommend using this wallet for users just starting their acquaintance with cryptocurrency.

However, if you are already an experienced user - this wallet is for you! The wallet supports QR code-based payments, offline storage, and key control. Also, Mycelium offers secure online accounts.

Thanks to this wallet, you can make all cryptocurrency transactions right on your phone.

Advantages:

  • Payments based on QR code
  • Control over your keys
  • Ability to perform all financial transactions on the phone

Disadvantages:

  • The interface can be difficult for beginners
  • Transaction fees

Exodus

Exodus logo

Image source – exodus.com

Exodus Wallet is a program that stores on your computer.

Also, this wallet is attractive to investors as it integrates with the Trezor wallet and can convert your digital money into graphs and charts. You can make financial transactions right on your computer desktop! Very convenient, you must agree.

Exodus also supports over one hundred digital assets.

The program generates a private key to access your finances and ensures 100% security of your money savings.

Important: the private key stored on your computer. I recommend that you make a backup copy of this key.

Advantages:

  • Support for over a hundred digital assets
  • Investment opportunities
  • Intuitive user interface
  • Ability to perform financial transactions on your computer desktop

Disadvantages:

  • Need to create a backup key
  • Lack of two-factor authentication

Blockchain.com

Blockchain.com logo

Image source – blockchain.com

Yes, the name of this wallet is easy to remember because it is consonant with the technology thanks to which the cryptocurrency works.

Blockchain.com is a convenient and practical wallet that will appeal to both beginners and cryptocurrency experts. It is a free wallet that is available both online on your computer and as a mobile application.

Important: I advise you to enable two-factor authentication to ensure the security of your wallet.

Advantages:

  • User-friendly interface
  • This wallet is presented online and in a mobile application
  • Ability to protect your data with two-factor authentication

Disadvantages:

  • Lack of official PC app

Electrum

Electrum logo

Image source – electrum.org

Electrum is a safe online wallet.

After spending a few minutes creating an account, you can immediately start performing cryptocurrency transactions. Electrum has established itself as a secure wallet that you can trust with your finances.

The Electrum, of course, free for users.

Advantages:

  • User-friendly interface
  • Reliable and secure

Disadvantages:

  • Lack of mobile app and official PC app

Summary

After analyzing all 9 wallets, I have compiled a rating that clearly describes the advantages and disadvantages of each wallet.

Comparison table of the 9 most reliable crypto wallets


Company

Type of wallet

Cost

Incorporated exchange

Compatible hardware

Coinbase

Hot

Free

V

x

Trezor

Cold

$60-181$

v

Trezor Model T,

Trezor One White

Ledger

Cold

$60-120$

V

Ledger Nano S,

Ledger Nano X

SoFi

Hot

Free

V

x

Robinhood

Hot

Free

V

x

Mycelium

Cold

Free

v

Ledger Nano S,

Ledger Nano X,

Trezor One White,

KeepKey

Exodus

Hot

Free

V

Trezor Model T,

Trezor One White

Blokchain.com

Hot

 

Free

V

x

Electrum

Hot

Free

V

x

All nine crypto wallets are well and reliable. However, I would still advise you to pay attention to Coinbase, Trezor, and Ledger. No wonder they entered the top three in the rating. In my opinion, these wallets are stunning for their functionality and security.


Conclusion

The world is moving inexorably forward. Technologies are developing so quickly that sometimes we do not have time to follow trends. Some ten years ago, we kept cash in a wallet, and today we pay on the Internet with electronic money and protect our wallet not with a zipper and a fastener but with a password. Is it good? Certainly! Sooner or later, we will get used to new technologies and understand how much they simplify life.

I was happy to talk to you about cryptocurrency and explain the complex blockchain technology in simple terms. You can invest in cryptocurrency or completely abandon cash by switching to bitcoin payment - it's up to you. I just want to keep you out of intruders, so I have chosen the best and most reliable crypto wallets for you today. It doesn't matter if you are a beginner or an advanced user - you can choose a wallet for every taste and color.

I will be happy to continue the topic of cryptocurrency and talk with you about new trends in the world of electronic money! There are still many new topics ahead that are worth discussing.

Feel free to write the comments! I would be happy to answer any questions.

See you soon!

Author
Darina Shramko
Cybersecurity specialist and researcher.

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