What are the best wallets for holding Bitcoin you ask? Well, when it comes to storing your Bitcoin, the wallet you store your coins in is probably the most important part of the entire process. If you choose the wrong wallet, you could easily lose all of the Bitcoin you have, and be left with nothing. That is why it is extremely important to really consider which wallet you want to use in order to make sure you don’t lose any Bitcoin. There are three main types of wallets to consider: online wallets, cold storage wallets, and desktop/local wallets. I will also be covering trading platforms if you are interested in trading Bitcoin for Altcoins.
What Are The Best Wallets For Holding Bitcoin?
So first up we are going to talk about online wallets. Most people who are just starting to get into Bitcoin will use an online wallet first as they need to exchange their currency for Bitcoin. When you do this, your coins go into an online wallet. You can then, leave it in that wallet, move it to another wallet, or go trade it on a trading platform.
Coinbase is the most popular online Bitcoin wallet/exchange. This where most people get their start with Bitcoin, and it is where I would recommend you get your start also. It’s easy to exchange any FIAT currency such as USD to Bitcoin, and then, you can hold that Bitcoin in Coinbase if you want or sent it to another one of the wallets down below. If you do decide to leave your Bitcoin at Coinbase, I would recommend moving it to your ‘Bitcoin Vault’. This takes your coin offline and puts it into cold storage keeping it safe from getting hacked.
Blockchain.info is one of the biggest, dedicated, online wallets on the internet. They currently host over 20,000,000 wallets and process hundreds of thousands of transactions each day. The biggest thing about Blockchain is that it is not an exchange. They have exchange partners that you can work with, but Blockchain.info doesn’t do any exchanging itself. Additionally, Blockchain.info only supports Bitcoin, Bitcoin Cash, and Ethereum. If you want to buy any other coins, you are out of luck.
Cold storage is the safest way to store your Bitcoin. It keeps it offline and completely in your control, and that in turn, makes you able to be sure that it is 100% safe and secure at all times. As long as you have your cold storage/hard wallet, your Bitcoins are safe. Now, with this, it does make it harder to use Bitcoin for purchases and exchanges, but that is something I am willing to sacrifice in order to keep my Bitcoin safe.
The Trezor is a hardware wallet that allows you to keep your Bitcoin completely safe by keeping it offline and on its own dedicated piece of hardware. It promises to never expose your private keys, and it allows for easy, offline signing of transactions using a small display on the front of the device. You can also back your Trezor on a small piece of paper in order to regain access to all of your coins if your device is lost, stolen, or destroy. A Trezor really is one of the safest ways to store Bitcoin.
The Ledger Nano S is a Bitcoin/AltCoin hardware wallet that’s whole purchase is to keep your Bitcoin safe. It offers double confirmation of any transactions and keeps everything safe and secure inside the wallet with state-of-the-art security locked by a PIN code. Because of this, your Bitcoins are safe, offline, and as long as you’ve got Nano S, your Bitcoin is completely safe from hackers, scammers, and anyone else who wants to take it. The Ledger Nano S is one of the best hardware wallets on the market.
Desktop wallets are the middle ground between 100% online wallets like Coinbase and offline, hardware wallets like the Trezor. Basically, a desktop wallet keeps your Bitcoin on your local computer, and thus, it does allow hackers to possibly take it off your computer. The upside of a desktop wallet, however, is that you are in 100% control of your Bitcoin. It’s not in an exchange or online wallet. It is completely your responsibility, and transactions are still incredibly simple and easy.
Exodus is my personal favorite desktop wallet. It is featured packed and designed to keep your Bitcoin as safe as possible. Exodus also has ShapeShift built into it allow for seamless exchanging of Bitcoin to a multitude of other Cryptocurrency very easily. Exodus also has an easy portfolio view allow you to see all of your cryptocurrency value in one place making it easy to get a complete overview of your cryptocurrency investment.
Electrum has been around since 2011, and over that time it has kept hundreds of millions of dollars worth of cryptocurrency safe. It allows you to take your Bitcoin offline and keep it in cold storage if you want, and using 2 Factor Authentication, encrypted private keys, and proof checking of transactions, it ensures your Bitcoin is as safe as possible.
Now, if you’re looking to hold Bitcoin long term, you are much better off using one the wallet storage methods above. However, if you are looking to day trade or swing trade cryptocurrency, you will need a trading platform to do so. You can also use a trading platform to purchase some Altcoins if you are looking to get into smaller cryptocurrencies.
Binance is the largest cryptocurrency trading platform on the market. They have consistently proven they can keep your Bitcoin/Altcoins safe over long periods of time. Binance is also a great place to trade any Altcoins you may own for more mainstream coins like Bitcoin, Litecoin, or Ethereum. I personally use Binance to do all of my cryptocurrency swing trading, and I cannot recommend them enough.
KuCoin is a Bitcoin trading platform that also allows you to day trade and swing trade a ton of different cryptocurrencies. If you are ready to start full-time trading, KuCoin is a great place to consider as they will give you a ton of different cryptocurrency pairs to choose from. They are constantly adding new pairs by listing as many new coins ask they come available.