Best Bitcoin Wallets of 2022
In this article we discuss the 5 Best Bitcoin wallets of 2022. If you’re looking to secure your funds with a bitcoin wallet read on…
What is a Bitcoin Wallet?
A Bitcoin (BTC) wallet is an application that helps to secure the funds stored inside it. After purchasing BTC on a cryptocurrency exchange, you will need to save the coins securely. Leaving bitcoins on an exchange can be risky since cryptocurrency exchanges have been hacked in the past. Therefore, it is always a good idea to store the purchased BTC in a safe wallet.
If you are a beginner, it is best to start with a free software wallet. These come in the form of apps that can be downloaded onto a mobile/laptop/desktop or can be accessed via an online browser. They are free to use and currently offer advanced features such as the ability to buy Bitcoin from inside the wallet application. The disadvantage is that software wallets can be hacked easily or can be compromised through phishing and virus attacks.
For advanced users seeking extra security, a hardware wallet is the best option. However, it is not available for free and must be purchased. Since it is a physical device, it will also be subject to wear and tear and will need to be replaced periodically. The funds on a hardware wallet are safe as long as the device itself is not lost or stolen.
Where can you find a Bitcoin wallet in 2022?
There are many kinds of Bitcoin wallets available for you to use. While most are freely available in the form of applications that can be downloaded onto phones, tablets, or desktops, hardware wallets need to be purchased and are expensive. Paper wallets were used earlier but have reduced in popularity as hardware wallets have been invented. However, hardware wallets are the most secure of all Bitcoin wallets since they store the assets in an offline environment. Other wallets need an online connection and are therefore less secure as they can be hacked easily especially if you are a new user.
Hardware wallets are also known as cold wallets while desktop/mobile (software) Bitcoin wallets are also commonly known as hot wallets.
Types of Bitcoin Wallets:
Web wallet: These are Bitcoin wallets that are accessed through a site. You will need a working internet connection to access the site. The advantage of using a web Bitcoin wallet is that it can be accessed from any device. All you need is an internet connection since they function through a web browser.
Desktop or Mobile wallets: These are applications that need to be downloaded as a program onto your device. If you lose access to the device, you will need to reinstall the application and restore your Bitcoin wallet.
Hardware Wallets: These are physical devices that often resemble a card or a pen drive. They can be plugged into a computer or laptop and you can access the wallet. They are the most secure option as they require internet connectivity only while in use. They store the funds in an offline environment. If you lose the hardware wallet, bad actors can gain access to your funds.
Each Bitcoin wallet is identifiable via an address, a string of alphanumeric characters unique to each address. In addition, you will also need to generate private and public keys to use the wallet. The keys and passwords must be saved securely as the funds can be lost forever if they are compromised.
Best Bitcoin Wallets of 2022
Bitcoin has seen a lot of appreciation over the years and the original pioneering cryptocurrency is currently one of the most widely traded assets in the entire world. Therefore, you must take extra care to ensure that your bitcoins are safe and secure at all times.
Best Bitcoin wallets of 2022
1. Exodus: This wallet supports multiple devices and can be used on desktops, mobiles, or tablets. The Exodus wallet is very popular and can also be linked with Hardware wallets. This Bitcoin wallet supports many other cryptocurrencies as well. The users of Exodus can also purchase BTC from within the app. The wallet does not store your private keys and is therefore secure. The user can also monitor prices easily from within the app. 2. Mycelium: It is one of the oldest Bitcoin wallets and features a simple yet elegant user interface. Mycelium is easy to use and offers basic functionality that should be enough for a first-time user. Mycelium is open source so there isn’t much support on offer in case you need help. It works on mobile phones only. 3. Ledger Nano: It is a hardware wallet offered in different models such as the Ledger Nano X and Ledger Nano S. You will need to buy the device and it’s easily available on Amazon or through Ledger’s official site. It comes with bluetooth functionality and is one of the most secure options for storing Bitcoin. Hardware wallets are expensive but offer world-class security features. It is a good idea to invest in a hardware wallet especially if you are planning to store a large number of bitcoins. Ledger allows instant swap and purchase of BTC. 4. Trezor Model T: It is another hardware wallet that can be used to store bitcoins. It can be purchased on many sites. You can also buy Trezor from the official site. Trezor does not offer support for iOS mobile devices but works on desktops, Mac, and Android mobile phones. 5. Electrum: It is one of the oldest and most widely used open-source Bitcoin wallets. It can be used on both mobiles and desktops. Download it here. Electrum offers basic functionality and hasn’t changed over the years. It offers good security and is free to use. Electrum offers support only for BTC and users can customize fees. If the hardware wallet or device on which the Bitcoin wallet app is installed is compromised, you will need to reinstall and restore the wallet on a new device. Bitcoin wallets offer a simple solution to ensure the safety and security of your BTC. You can transfer BTC easily from any Bitcoin wallet and can also share your wallet address to receive bitcoins. You will also need to transfer the bitcoins on an exchange to trade them but most Bitcoin wallets currently offer trading from within the wallet app. The primary purpose of a Bitcoin wallet is to keep your BTC tokens safe at all times. Many exchanges also offer Bitcoin wallets but in case the exchange gets hacked, you will lose access to all your assets. This is why a private Bitcoin wallet is highly recommended for security purposes. It is important to remember that while Bitcoin wallets make it easier for the user to safeguard their funds, the user will still need to keep their private keys/passwords safe. Recovery phrases must also be kept safely as they help in restoring access to a wallet if it’s lost or stolen. Hardware wallets are portable but you will need to ensure that you carry them safely. Protect hardware wallets from extreme temperatures and moisture as it can cause damage to the device. For extra security, it is a good idea to divide the total BTC assets between different Bitcoin wallets. In case one of the wallets gets compromised, you would not lose all your bitcoins. A combination of wallets can also be used to add extra layers of security. For example, Exodus can be used with Trezor.