The best Bitcoin wallets for securely storing your crypto

Bitcoin wallets are worth it if the crypto exchange or investment platform doesn't offer in-built storage. Crypto wallets were created to protect your private key and crypto assets against security breaches.

Bitcoin wallets are digital wallets used to store, send, and receive bitcoin and other cryptocurrencies. Your crypto wallet assets are securely stored with a unique private key, like a password, to ensure that no one else can access the wallet.

Bitcoin wallets are useful if the crypto exchange or investment platform doesn't offer in-built storage. Crypto wallets were created to protect your private key and crypto assets against security breaches. While most wallets give you complete custody of your assets, not all exchanges and investment platforms do.

Types of Bitcoin Wallets

There are two main types of crypto wallets for traders to securely store bitcoin, ethereum, and other digital assets.

Hot wallets are software wallets that can be accessed online through a mobile or desktop application. They're typically easier to use than cold wallets and offer greater accessibility for traders who frequently trade or use their crypto assets. However, because they're connected to the internet, they're more susceptible to hacking attempts and other security breaches.

Cold wallets, on the other hand, are hardware wallets that store your crypto assets in an external chip, like a USB drive. They're typically more secure than hot wallets because they're not connected to the internet, making them less vulnerable to hacking attempts and other online threats. However, they're also more difficult to use and may not be suitable for beginners or traders who need frequent access to their crypto assets.

How to Choose the Best Bitcoin Wallet

Some of the best investment apps also offer cryptocurrency trading and market access to the crypto market.

Many of the best cryptocurrency exchanges offer an internal crypto wallet to store your digital assets, including bitcoin. But if your platform doesn't provide secure storage, or you prefer to keep your crypto separate, you can open an external wallet.

To secure your cryptocurrencies with a bitcoin wallet, you must create an account with your desired platform first. Most non-custodial wallets (wallets that you hold complete custody over) offer downloadable software that you can use to secure your private key and crypto assets.

However, if you're using a hardware wallet, you'll likely need a USB cable to connect to your platform's external storage chip. Once you've created your account, connected the necessary devices or downloaded any required software, you can transfer over any existing crypto assets.

Best Practices for Bitcoin Wallet Security

Best Bitcoin Wallets FAQs

You need a crypto wallet to securely store the private keys that hold digital assets like cryptocurrencies and NFTs. You need private keys to access your digital assets and ensure they are safe from hacks and phishing attacks. Hot wallets (software wallets) and cold wallets (hardware wallets) are the two types of secure bitcoin wallets.

If you lose your bitcoin wallet, you may be able to recover your funds through a backup of your seed phrase or private keys. Without a backup, you won't be able to recover your wallet.

To send and receive bitcoin using a wallet, you'll need to use your wallet's public address (to receive) and private key (to send). Without those things, you won't be able to send or receive bitcoin through a secure wallet.

Why You Should Trust Us: How We Reviewed The Best Bitcoin Wallets

Business Insider rating methodology for investing platforms is based on several factors, including customer support access, bitcoin features, wallet custody, educational resources, and wallet compatibility. Some crypto wallets are compatible with other storage platforms. For instance, Mycelium currently supports Trezor, Ledger, and KeepKey hardware wallets.

Investment platforms are given a rating between 0 and 5.

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