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Best Bitcoin (BTC) Wallet
There are more and more options for buying, selling and storing Bitcoin popping up daily, making it hard to choose an exchange and wallet. With Bitcoin Cash, Ethereum, Litecoin and other alt coins on the rise, users are increasingly searching for cryptocurrency wallets with the flexibility to include other altcoins in the same place. We will lay out some fundamentals for choosing a cryptocurrency wallet. For those of you that are wondering WHAT IS BITCOIN? Start Here.
Tips For Buying Cryptocurrency Safely
We recommend using the same precautions when setting up a Bitcoin/Cryptocurrency wallet as you would use when setting up a bank account. Here are a few recommendations:
- Create a new email for your Bitcoin Wallet and use a strong password (Write your username/password down if you need to and store it in a very secure place).
- Use a strong password for your Bitcoin Wallet (Again, write your username/password down if you need to and store it in a very secure place).
- Avoid posting or participating in conversations about the cryptocurrency you own on social media. Keep your finances private, just like anything else.
- Utilize virus and malware protection on any device you use. While you may think your computer is working just fine and you are doing everything you are supposed to do; viruses, malware and adware can be crawling undetected on your devices, potentially exposing you. Virus protection is necessary to defend you from these situations.
- After purchasing Bitcoin from Coinbase you could also consider storing your BTC on a hardware wallet, desktop wallet, or mobile wallet. This takes time to understand and setup, but is also a very secure option, especially for long term investors. (More On This Below)
Best Bitcoin, Litecoin and Ethereum Wallet
I have tried many different cryptocurrency wallets and have come to the conclusion that Coinbase is by far my favorite. Coinbase is secure, has basic easy-to-understand analytics and the option to buy and sell Bitcoin, Litecoin and Ethereum all in one place. They have a website, iOS app and Android app, making it convenient to access your account at any time. You can click here to signup for Coinbase and receive $10 free. There are a lot of options out there and after trying many of them we highly recommend Coinbase for securely buying cryptocurrency.
Is There An Alternative to Using a Bitcoin Wallet?
Alternatively, you can also use “cold storage” options for cryptocurrency, which essentially means it is stored offline on your computer or external hardware device (like a Ledger Nano S). While cold storage offers more security, it also comes with downsides. It is more complicated, requires additional steps, and is not as user-friendly as cryptocurrency wallets. For instance, if you were to misplace your Ledger Nano S containing your cryptocurrency, that is just like misplacing cold hard cash. We recommend utilizing the storage method that makes YOU feel the most comfortable, however it’s good to be aware of the methods that are the most secure.
Hardware Wallets vs. Desktop Wallets vs. Mobile Wallets vs. Paper Wallets
For a technically inclined individual there are an array of options for storing your Bitcoins. While, there are many viably safe options, I would like to focus on a particularly secure method: cold storage. Cold storage simply means that your coins are stored offline, usually in the form of a Hardware or Paper wallet.
One of the best break out options for cold storage of your BTC is Hardware wallets. A Hardware wallet simply means your BTC private keys are stored on a secure hardware device, usually with a small display for transaction authenitcation. The Ledger Nano S is widely acclaimed as the best option on the market for storing an array of different Cryptocurrencies securely, offline and most importantly: conveniently. They have a supreme user interface that is toppling everything else in the market and is truly a must-have for serious cryptocurrency investors. Click Here To Buy The Ledger Nano S!
Paper Wallets are another popular option that I would recommend to a very tech savvy person. While the other options mentioned are rather easy to comprehend and figure out, paper wallets are a little bit more complicated, but also A LOT more secure. Essentially a paper wallet is creating a new cryptocurrency public address and private key with a simple program. The program will produce QR codes for your public address and private key that you can print out or write it down.
In a nut shell, you can store your cryptocurrency in a “paper wallet,” and store multiple copies in very safe places (Think: Bank safe deposit box). This will eliminate the possibility of anyone using viruses or malware to attempt to tamper with your coins (so long as you don’t expose your private key in any way).
WalletGenerator is one Paper Wallet solution for BTC and many other cryptocurrencies that will assist you in the process of creating your paper wallet. In our opinion, paper wallets are the most secure method of storing your cryptocurrency long term if done correctly. Do extensive research before creating your paper wallet, so you know the process, security tips and best solution for your specific needs. Please also keep in mind a paper wallet is just like cash: if you lose your private keys than you lose your coins. Paper tears, ink bleeds and anything could happen like a natural disaster or fire. Use your best judgement on how to protect yourself from every possibility, just like you would cash.
Mobile and Desktop wallets are inherently online, so while they are just fine for many intents and purposes, they do pose the risk of being exposed to viruses and malware that could end up on your device. The only exception to this is a Desktop/Laptop/Mobile device that is kept offline 24-7, which in reality is hard to accomplish and, in most scenarios, unlikely.
We only recommend Desktop/Mobile wallets for small cryptocurrency amounts or when being utilized for day to day trading and/or purchases. A damaged mobile device or desktop could also pose a risk of losing your cryptocurrency, so there are typically backup files/phrases/passcodes for situations like this. Be sure to back these up to multiple secure locations to protect yourself.