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Best Bitcoin Wallets in the UK 2022

Last updated 24th Jun 2022
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Bitcoin (BTC) is the world’s first cryptocurrency and was created by a group or individual known pseudonymously as Satoshi Nakamoto. The asset has become increasingly popular over the years, especially in the UK.

A cryptocurrency wallet is needed to send and receive BTC on the Bitcoin network and there are several types to choose from depending on your experience level.

Most crypto platforms in the UK will provide you with a crypto wallet for free when you register for an account. However, you can also store your assets in a Bitcoin wallet that no company has access to in what is known as a private crypto wallet UK.

In this guide, we will be diving deep into the various types of Bitcoin wallets in the UK so you can find the best Bitcoin wallet or the best crypto wallet UK that suits you best.

What Types of Bitcoin Wallets Are There?

Bitcoin wallets come with different levels of security and ease of use. Those provided by crypto platforms are typically the most beginner-friendly options.

Private crypto wallets on the other hand require more technical knowledge but come with additional features. For example, staking, which is earning interest on your crypto holdings and the ability to send and receive non-fungible tokens (NFTs).

When you set up a private crypto wallet, you are presented with two strings of characters.

The public key/address is the address that you can use to receive crypto assets from other users, or yourself from a different crypto wallet.

The private key serves as the password to your crypto wallet holdings. Keep this key safe like you would the pin code to your bank card. It is worth making several copies of this key and storing it in places that won’t be affected in case of natural disasters.

Crypto wallets that give users access to this private key are known as non-custodial wallets since there is no one except the user looking after the tokens. Only the person with the private key has access to the crypto assets.

Custodial wallets on the other hand have private keys which are held by a company such as an exchange or brokerage platform. Users can send and receive cryptos from the crypto wallet however the company also has access to these assets.

Crypto wallets are typically the most user-friendly options but using these to store assets comes with some risks. For example, if the exchange gets hacked, then assets may be stolen from the crypto wallet and if the company goes bankrupt, then funds may be seized in the process.

This would not be the case for non-custodial wallets as no one except the user can access the funds.

Hot Wallets - Best Crypto Wallets For Beginners

There are various types of Bitcoin wallets but they can all be classified into two distinct groups: Hot and Cold wallets.

A hot wallet is a crypto wallet that is always connected to the internet. Some examples include:

  • Desktop & laptop software applications

  • Web browser extensions

  • Smartphone applications

  • Wallets provided by exchanges/brokerage platforms

Hot wallet example: You can use a desktop wallet as a downloadable application on your Windows or Mac computer.

Cold Wallets - Best Crypto Wallets For More Experienced Users

A cold wallet on the other hand is not connected to the internet which means there is a lower risk of it being compromised or hacked by online attackers. Examples of cold wallets include:

  • Paper Wallets

  • Hardware Wallets

Cold wallets are typically used for larger amounts of money and long-term holdings.

Note: Never enter your private keys/seed phrase on any website as it may be a scam or a phishing attempt to steal your assets.

Top Hot & Cold Bitcoin Wallets in the UK

Best Bitcoin Wallets Overall

The table below contains a list of the top crypto wallets overall for users of all experience levels, starting with the one that beginners prefer.

Wallet NameWallet TypePriceBeginner Friendly?Best Feature
eToroPlatform (Hot wallet)FreeYesIntuitive user interface.
Coinbase WalletWeb extension/mobile app (Hot wallet)FreeYesA wide range of assets supported
LedgerHardware (Cold wallet)$59 - $119+YesPrivate keys secured on the device

Here’s a more in-depth look at each of these wallets:

eToro

Best for Beginners

eToro is a multi-asset trading platform that offers markets for several cryptocurrencies including Bitcoin. The platform provides a secure free crypto wallet for all the cryptos on its platform with security features that include 2-factor authentication, and data encryption.

Pros

Quick account registration
Avoid the technical side of crypto
Easy to use
Great for beginners

Cons

Customer service can be slow sometimes
Withdrawal fees may apply
Inactivity fees after 12 months

Coinbase Wallet

Best for More Experienced Users

Coinbase Wallet is a self-custody cryptocurrency wallet that enables users to interact with various blockchains and decentralized platforms.

Pros

Can hold numerous cryptos including Bitcoin
Can be used to store NFTs
Can connect with Decentralized Finance platforms (DeFi)

Cons

Users are responsible for the safety of their own assets
Crypto wallet is not open-source so people cannot inspect the code for vulnerabilities

Ledger

Best for Advanced Users

Ledger wallets are hardware wallets that are used to store private keys offline. This hardware wallet offers an added level of security over software wallets since transactions require physical authorization on the device.

Pros

Provides a higher level of security than software wallets
Ledger Live app comes with crypto management tools
Thousands of coins supported

Cons

Not free
Not as beginner-friendly as other crypto wallets
Set-up process takes a long time

If you’re looking for a more extensive list of Bitcoin wallet UK options then have a look at the section below for rankings by each type.

Best Bitcoin Wallets in the UK Reviewed By Type

Best Software Bitcoin Wallets in the UK

Below we have listed a variety of different software wallets, beginning with the most beginner-friendly one to help you make a more informed decision.

Wallet NameWallet TypePriceBeginner Friendly?Best Feature
ExodusSoftware walletFreeYesIntuitive user interface
ElectrumSoftware walletFreeNoSecurity
Bitcoin CoreSoftware walletFreeNoAnonymity

Best Hardware Bitcoin Wallets in the UK

In this section, we have listed the top hardware wallets on the market that support Bitcoin.

Wallet NameWallet TypePriceBeginner Friendly?Best Feature
LedgerHardware wallet$59 - $119+YesPrivate key encryption
TrezorHardware wallet$85+YesA large variety of assets supported
SafePalHardware wallet$49.99NoCheaper than competition

Best Mobile Application Bitcoin Wallets in the UK

A mobile wallet gives you the option to have the flexibility and enjoy the security levels of a hardware option. Here we have listed the top mobile wallet apps or Mobile Bitcoin wallets to help you manage your assets on the go.

Wallet NameWallet TypePriceBeginner Friendly?Best Feature
eToro walletMobile AppFreeYesVariety of coins
Trust WalletMobile appFreeYesEasy setup
Coinbase WalletMobile appFreeYesBeginner-friendly
ExodusMobile appFreeYesA variety of coins supported

Best Free Bitcoin Wallets in the UK

Have a look below for the top free Bitcoin wallets on the market.

Wallet NameWallet TypeBest Feature
eToroHot walletMany coins supported
Coinbase WalletHot walletUser-interface
Paper walletCold walletSecurity

What to Consider When Choosing A Bitcoin Wallet UK?

Do Bitcoin Wallets Support NFTs?

Non-fungible tokens (NFTs) are digital assets stored on the blockchain. These tokens can represent art, certificates, music, virtual land, concert tickets, and more. NFTs can only exist on smart contract platforms such as Ethereum and Solana, meaning only multi-asset wallets can support these tokens. Popular crypto wallets that support Bitcoin and also offer NFT compatibility include Trust Wallet and Coinbase Wallet.

Is Staking Possible With A Bitcoin Wallet?

Staking enables participants to earn rewards for “locking up” their tokens in a similar way to how a bank pays interest on savings accounts. Many platforms such as eToro offer this service directly from the crypto wallet. However, staking is not offered on Bitcoin but on other coins such as Ethereum, Tron, and Cardano.

Can I Use The Same Wallet For Multiple Exchanges in the UK?

The same cryptocurrency wallet can be used to transact with multiple different exchanges. There are no limitations to how many crypto wallets you can create or interact with. When making transactions on the blockchain, it is important to double-check the addresses being used as there is no way to recover assets sent to the wrong crypto wallet.

Fortunately, the first few characters of a crypto wallet give you an indication of what blockchain it belongs to.

For example, a typical Bitcoin wallet UK address on Binance would look like this:

34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo

Whereas a typical Ethereum wallet address looks like this:

0xbe0eb53f46cd790cd13851d5eff43d12404d33e8

Note: ALL Ethereum wallet addresses begin with 0x — good to make a mental note of that.

You should only send BTC to a Bitcoin wallet and Ethereum to an Ethereum wallet.

Can I Trade On Decentralized Exchanges Using A Bitcoin Wallet UK?

Some cryptocurrency wallets give users access to decentralized exchanges (DEXes) directly from the app itself. This enables users to trade and manage their assets in a decentralized way, without any intermediaries. However, this feature is only available for assets built on the Ethereum blockchain or other smart contract platforms such as Solana.

Since Bitcoin only exists on its own blockchain, it cannot be traded on DEXes.

Some examples of wallets that have DEX functionality include Trust Wallet, Coinbase Wallet, and Metamask.

Can I Buy Bitcoin Using A Wallet in the UK?

It is common now to find wallets that offer users the ability to buy crypto directly from the app using third-party providers. This is a feature that is offered on Trust Wallet for example.

Simply open the app, search for Bitcoin, click ‘buy’ and follow the onscreen instructions to complete the transaction.

Note: using this service may incur higher fees than using a cryptocurrency exchange or brokerage platform.

Do I Have to Pay Tax on Bitcoin Stored in My Crypto Wallet in the UK?

You may be liable for taxes when dealing with cryptocurrencies in the UK, as per the guidelines provided by HMRC. It is important that you keep up to date with the latest regulation to ensure that you stay compliant with the law.

Crypto companies may be required to provide information on their customers to the relevant authorities if requested.

How to Set Up an Ethereum Wallet in the UK

Follow these simple steps to set up an Ethereum crypto wallet:

Step 1: Sign up for an account
Step 2: Verify your identity
Step 3: You can use your Ethereum wallet now

How Do You Cash Out And Spend Bitcoin From A Wallet in the UK?

To cash out your Bitcoin holdings from a crypto wallet UK, you can follow these steps below:

Step 1: Open the wallet
Step 2: Provide the recipient's wallet address
Step 3: Sign in to your account
Step 4: Click ‘deposit’
Step 5: Paste the address
Step 6: Click confirm
Step 7: Sell your Bitcoin
Step 8: Withdraw the money

Top Tips For Bitcoin Wallet Users

  • Never enter your seed phrase on a website as it could be a scam/phishing site.

  • Double and triple-check crypto wallet address before making a transaction. An incorrect address may lead to a loss of funds forever. Remember, the blockchain is decentralized so there is no customer service that can help to retrieve your assets.

  • Make a copy of your seed phrase / private key and keep it safe in case you forget your password. One of the best ways to keep it safe is to print it out on a piece of paper and store this in a safe place.

  • Crypto platform staff will NEVER ask for your seed phrases. If someone does, they may be a scammer so beware.

FAQs

What is the best Bitcoin wallet provider in the UK?
Is buying Bitcoin legal in the UK?
Is it safe to provide your Bitcoin wallet address for crypto giveaways?
Do I need a wallet for Bitcoin faucets?
Do you need a wallet for Bitcoin betting in the UK?
What are the best wallets for ICOs?
What are the best multi-currency wallets in the UK?
What is the best personal Bitcoin wallet in the UK?
Which type of Bitcoin wallet is the most popular in the UK?
What is the difference between a Bitcoin wallet and an exchange?
Khashayar Abbasi

Khashayar Abbasi

Khashayar discovered Bitcoin back in 2014 and has since spent countless hours researching the different use cases of cryptocurrencies. He has a bachelor's degree in International Relations and has been a writer in the financial services industry for nearly half a decade. In his spare time, Khashayar enjoys photography, cycling, and ice skating.