Best Bitcoin Wallets in 2023

Khashayar Abbasi

Last updated 16th Feb 2023

Disclosure

Bitcoin wallets enable users to send and receive Bitcoin across the globe without any intermediaries after buying any cryptocurrency. In this case, we are talking about buying bitcoin and storing the assets.

There are many ways to buy Bitcoin:

• Buy Bitcoin With PayPal

• Buy Bitcoin with Bank Transfer

• Buy Bitcoin With Debit Card

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

So, do you need a crypto wallet to store your crypto assets? If you want to invest in cryptocurrency, you should have a crypto wallet to store Bitcoin or other crypto assets. In this guide, we will be diving deep into the various types so you can find the best bitcoin wallet that suits you best.

What Is a Bitcoin Wallet and How Does It Work?

A Bitcoin wallet is a device or an app that helps secure your Bitcoin by storing your secret keys. Wallets typically have a public and private key. A public key acts like your bank account number. It’s a long sequence of characters used to send crypto to your wallet. You can share this with anyone who wishes to send you Bitcoin. Private keys act like the PIN to your bank account. Of course, you’d never share this with anyone. The private key gives you complete custody over your Bitcoin wallet.

Wallets come in different types, and we’ll discuss this in greater detail. Here are some of the main uses cases of a Bitcoin wallet:

• Secure Storage of Your Bitcoin: This is the primary function of any Bitcoin wallet. They will keep your keys securely and accessible for you.

• Send and Receive Bitcoin: With your private and public keys, it's actually quite easy to send and receive crypto. You can send and receive from crypto exchanges or other wallets.

• Swapping: Some wallets will allow you to exchange one crypto for another. For instance, swap Tether (USDT) for Bitcoin (BTC).

• Staking Bitcoin: Some online Bitcoin wallets will allow you to invest and earn interest passively. However, this is not common among all online wallets.

Manage Your Portfolio: Wallets will provide you with tools showing value, trends, and market prices.

To complete the purchase of Bitcoin, you’ll need a Bitcoin wallet. Some crypto exchanges like Coinbase will provide you with a free wallet while some people prefer external wallets. We, however, strongly recommend against leaving your Bitcoin on any exchange. Please always ensure to transfer your assets to a secure wallet unless you’re day trading.

We cannot stretch the importance of having a Bitcoin wallet. It gives you complete control of your assets. You can easily access, and even spend your Bitcoin. Considering the value of Bitcoin and the number of hackers out there looking to steal them, it’s paramount that you safely store yours. The main target will be your private keys. Please, NEVER give them away!

What Types of Bitcoin Wallets Are There?

Crypto Wallets come with varying levels of security and ease of use. Those provided by crypto platforms are typically the most beginner-friendly options. However, there are many Bitcoin wallets to choose from, and if you are a beginner or an expert trader, you have a lot of options when finding the best Bitcoin wallet.

Private wallets on the other hand require more technical knowledge but come with more 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 letters and numbers.

One string is known as your public key which can be shared with other users when you want to receive digital assets and the other is known as the private key which serves as the password to your wallet and must be stored safely, away from unwanted eyes.

Wallets that give you access to the private keys are known as non-custodial wallets since only you have full access to the associated funds.

When the private keys are held by a third party such as an exchange, then the crypto wallet is known as a custodial wallet, since the company has full control over the assets.

Notably, if the platform is hacked then your assets may be stolen and even seized if the exchange is made bankrupt. This would not be the case for non-custodial wallets as no one apart from you has access to the funds.

Hot Wallets - Best For Beginners

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

A hot wallet is a wallet that is always connected to the internet. Hot wallets can include:

• Desktop & laptop software applications

• Web browser extensions

• Smartphone applications (android and ios devices)

• Wallets provided by exchanges/brokerage platforms

Note: Some hot wallets have higher crypto trading fees

Cold Wallets - Best 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

Hardware wallets are unique types of BTC wallets that store private keys in a secure physical device. It is believed to be the most secure way of storing any amount of Bitcoin. Unlike paper wallets, which need to be imported into the software at some point, hardware wallets do not need to be imported into the software, they can simply be used as a physical wallet. Also, they are more secure than online and mobile wallets, as they don't rely on third parties for their data and are harder to steal. There are different hardware wallets and they have different features, so you may need to research to find the best hardware wallet. A hardware wallet example is Ledger.

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

Top Hot & Cold Bitcoin Wallets

Best Bitcoin Wallets Overall

The table below contains a list of the best crypto wallets overall for users of all experience levels, starting with the one that is preferred by beginners.

Here’s a more in-depth look at each of these crypto 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.

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.

Ledger

Best for: Advanced Users

Ledger wallets are hardware wallets that are used to store private keys offline. They offer an added level of security over software wallets since transactions require physical authorization on the device. If you would like to store private keys in a secure physical device, Ledger is an ideal Bitcoin hardware wallet.

Best Bitcoin Wallets By Type

Best software Bitcoin wallets

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.

Best hardware Bitcoin wallets

In this section, we have listed the top hardware crypto wallets on the market that support Bitcoin. The following table shows the best Bitcoin wallets by name, type of hardware wallet, price, etc.

Best mobile application Bitcoin wallets

Here we have listed the top mobile app Bitcoin wallets to help you manage your assets on the go.

Top Free Bitcoin Wallets

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

What To Consider When Choosing A Wallet?

Do Bitcoin Wallets Support NFTs?

Non-fungible tokens (NFTs) are digital assets stored on the blockchain. They can come in many forms including digital art, certificates, music, virtual land, and more. The best crypto wallets such as Coinbase Wallet and Trust Wallet support NFTs however NFT assets themselves are not supported on the Bitcoin blockchain. NFTs can only exist on alternative blockchains such as Ethereum, Solana, and Avalanche.

Is Staking Possible With A Bitcoin Wallet?

Staking is the process of “locking up” your tokens for a period of time and earning interest on your holdings similar to how a bank pays interest on your savings account. Many platforms such as eToro and Coinbase offer this service, however, not for Bitcoin since its blockchain does not support this feature. Staking is only available for a select number of coins including Ethereum, Cardano, and more.

Can I Use The Same Wallet For Multiple Exchanges?

Cryptocurrency wallets can be used to send funds to any exchange and the same wallet can be used for multiple different platforms. When it comes to making transactions on the blockchain, it is important to double-check the address that is being used as well as the blockchain network upon which the transaction is being made. For example, if you are sending Bitcoin from your wallet to an exchange, make sure the address provided by the exchange is for BTC assets. If you send Bitcoin to an Ethereum address, the assets will be lost forever.

Can I Trade On Decentralized Exchanges Using A Bitcoin Wallet?

Depending on the crypto wallet used, you may be able to trade on decentralized exchanges using a Bitcoin wallet. However, the crypto wallet in question would have to be a multi-asset wallet that supports coins other than Bitcoin. That’s because decentralized exchanges run on Ethereum, Solana, and other alternative blockchains, as Bitcoin is incompatible with these platforms.

Wallets such as MetaMask, Coinbase Wallet, Trust Wallet, and Ledger can be connected to decentralized exchanges, allowing users to trade with altcoins such as Ethereum.

Can I Buy Bitcoin Using A Wallet?

Some cryptocurrency wallets enable users to buy digital currencies directly from the wallet itself. This is possible on Trust Wallet and Coinbase Wallet for example. For the former, you can buy Bitcoin using the browser extension on your PC or directly from within the app on your smartphone. To do so on the Coinbase Wallet, you will need to connect it to your Coinbase account by following the on-screen instructions. Notably, this process may include higher fees than if you were to buy from an exchange or brokerage platform.

How to Add Funds to a Bitcoin Wallet?

Most wallets don’t support direct fiat funding. At some point, you’ll need to transfer funds from an exchange to a Bitcoin wallet. We’ll explore how to do this for both software and hardware wallets.

Software Wallets

We take one popular channel that Bitcoin investors use to add funds to their wallets. Our example will involve moving Bitcoin from a Binance exchange to an exodus wallet. Here are step-by-step guidelines.

Hardware Wallets

Similar to online wallets, it’s difficult to transfer directly fiat to hardware wallets. Transfer mostly happens from crypto exchanges to hardware wallets.

In the following example, we’ll provide you with a step-by-step guideline on transferring Bitcoin from Coinbase to a Ledger wallet:

• Step 1: Open your Ledger Live and login

• Step 2: Select the receive button for Bitcoin. Next, you’ll need to open the desired app on your Ledger device

• Step 3: Verify the address shown on your device and copy the address

• Step 4: Shift to Coinbase and log in. On the dashboard, select Accounts

• Step 5: Select Bitcoin. Paste the address from your Ledger

• Step 6: Enter the amount to transfer

• Step 7: Click continue and verify the 2FA from your phone.

• Step 8: Once you confirm, the transaction is executed.

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

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

How to Choose the Best Bitcoin Wallet?

Before grabbing your wallet, here are a few things you should keep in mind when picking the best Bitcoin wallet:

• Security: Almost everyone seeks the safest and most reliable crypto wallet. Since a crypto wallet stores valuable assets, it’s paramount that it matches or surpasses industry security standards. Look out for 2-factor authentication(2FA) for any prospective wallet. This feature allows you to authorize every login and withdrawal. Other wallets go beyond and provide biometric access to wallets, allowing users to use their fingerprints to log in. Others provide self-destruct PINs, air gap storage, and much more.

• Wallet Reputation: A company's reputation is another critical factor to check. Research if there’ve been previous security incidents. Good wallets will have their code as open-source so that everyone can scrutinize it. Look at how long the company has been in operation, accolades and accreditation. Please be careful because some companies are set up as exit scams. Check for reviews on trusted and verifiable third-party sites.

• Ease of Use: They are simple and intuitive wallets, making the user experience enjoyable. Yet, there are barebone wallets, too complicated for beginners. For beginners, we recommend starting with wallets that are simple to use. According to your preferences, check for compatibility with Bluetooth, IOS, Android, Windows, or MAC.

• Customer Support: This is especially true for hardware wallets. If the customer service team is responsive and helpful, your crypto journey will be much easier. We recommend seeking help from official sources only.

• Supported Cryptocurrencies: Select a wallet that is compatible with many cryptos. This will ensure that you can continue managing your portfolio centrally. Apart from Bitcoin, other popular cryptos of interest include Shiba Inu, Ethereum, and Cardano.

• Backup Options: Your Bitcoin wallet needs to have a mechanism for recovery. This is important in case your device fails. Some wallets offer dry runs for restorations for testing out the recovery process. Please ensure that it works before using the wallet.

• Mobile Version: Many desktop apps will come with their mobile version. However, the mobile versions will have limited features compared to desktop apps. If you move a lot, then this is something you'll have to consider.

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 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.

FAQs

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