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Best Bitcoin Wallets: Online, Desktop, and Hardware Options – 2019

Bitcoin (BTC) has dominated the cryptocurrency market for years as one of the first digital currencies. Despite a growing number of alternatives, Bitcoin still claims the largest market share and has become a household name since its peak in 2017. Today, over 23 million people own the open-source cryptocurrency.

If you’re considering investing in Bitcoin, you’ll need a place to store your investment. Purchasing Bitcoin requires more than fiat currency and a bank account. Consumers also need a “wallet” to store their Bitcoins, similar to paper money.

What Is a Bitcoin Wallet?

Unlike traditional forms of fiat currency, like the dollar, yen, and euro, digital currency can’t be physically stored in a traditional wallet, bank, or safe. Instead, you’ll need to find a cryptocurrency wallet that stores the private keys required to access your bitcoin on the blockchain.

There are a variety of wallet types available. Online wallets allow you to store your information via a website, while desktop wallets let you keep your crypto cash on a mobile device or your desktop. Hardware wallets are physical devices that allow you to keep your bitcoin completely offline — also known as cold storage.

Some people compare these hardware wallets to a USB drive for your bitcoin. There are even paper wallets, which are literally just pieces of paper with your private key printed on it. While this may be the cheapest way to achieve cold storage, we don’t recommend it, since paper is easily lost or destroyed.

There are dozens of wallets to choose from: the Ledger Nano, Trezor, Mycelium, KeepKey, Jaxx Liberty, Electrum — and many more.

5 Best Bitcoin Wallets

Here are five of the top bitcoin wallets to check out:

Trezor

As one of the oldest bitcoin hardware wallets on the market, Trezor offers users the security of offline, cold storage. Like other hardware wallets, it stores your private key (a string of code) and does not require interaction with software on your computer. As such, hardware wallets are safe from viruses or online malicious activity that can result in theft.

While Trezor has many benefits and is a top choice for many consumers who plan to regularly invest or make a significant investment, beginners may be deterred by the price tag.

Today, there are two primary models available to consumers, the Trezor One, which was the original model, and the Trezor Model T, which is a new model that offers additional bells and whistles, like a color touchscreen.

Electrum

Electrum is free, downloadable software that is stored on your computer. Though not yet available for mobile use, Electrum offers a fast, secure, and easy way to access and spend directly from your desktop.

Additionally, though considered one of the most secure Bitcoin wallets, Electrum is not without potential downfalls. In December 2018, there was a fairly significant phishing attack that resulted in the cumulative loss of about 245 bitcoins, or $880,000 according to current prices. This, of course, can happen to many wallets, but if you’re researching your options, it’s likely you’ll come across this infraction.

Coinbase

Coinbase is a mobile wallet, which means you can access the app from any iOS or Android mobile device. As is the case with several Bitcoin wallets on the market today, the Coinbase wallet is designed and managed by a larger cryptocurrency company — Coinbase.

As such, Coinbase wallet users will find this wallet to be somewhat of a one-stop-shop as the company is both a broker and exchange, meaning users can buy, sell, trade, and store coins in one user-friendly platform. Further, Coinbase users can also connect their U.S. bank account, making it an easy one-stop-shop for bitcoin transactions.

Exodus

Exodus is another open-source software wallet that can be used to manage Bitcoin, as well as a wealth of other cryptocurrencies, from your desktop. The wallet is compatible with Windows, Mac, and Linux, though it’s not currently available for smartphones or mobile devices, a downside for those looking for on-the-go convenience.

Though the wallet has numerous benefits, some cryptocurrency users express concern over the wallet’s lack of two-factor authentication, though the company makes a compelling argument in support of the decision in “Why Local Apps and 2FA Aren’t Friends  – Yet.

Robinhood

Robinhood, a popular platform for free stock trades, started off as a stock trading app designed to make trading more approachable. However, in recent months, the company has branched out from their trading and investment focus to offer cryptocurrency services. For those who are looking to manage numerous personal finance needs in one place, Robinhood may be worth checking out.

Bottom Line

Though these represent some of the most popular Bitcoin wallets on the market, the rapidly growing interest in cryptocurrencies has resulted in the creation of numerous wallets, many of which offer a mix of useful features and security.

Selecting the best Bitcoin wallet for your needs will require research that factors in your own preferences, like whether you want mobile access to your wallet, as well as a thorough review of the security features and transactional fees.

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