Best Bitcoin Wallets in 2021

Bitcoin wallets are a requirement when it comes to exchanging cryptocurrency tokens at any online exchange or brokerage. It serves the role of being your address, to which you can receive Bitcoins and through which you can send Bitcoins to other users. That being the case, today, we will be diving deep into the various types of Bitcoin wallets so you can find the one that suits you best.

Here’s Our List of Top Bitcoin Wallets in 2021

Here you can find a list of some of the best Bitcoin wallets out there where you can easily compare what one brings to the table over the other and can make an educated decision based on this data.

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What Is a Bitcoin Wallet and How Does It Work?

A Bitcoin wallet is essentially your Bitcoin account. Cryptocurrency tokens are not actually stored on your wallet; however, your wallet serves the role of the gateway to your address within the blockchain. In other words, there are two types of keys within each cryptocurrency wallet. First, you have the public keys, which you can give to anyone, through which they can send their Bitcoins to, assuming you want to receive BTC from someone, and then you have the private keys through which you can log into your Bitcoin wallet and prove to the blockchain that you are the rightful owner to that specific wallet address. They are essentially a location to and from which Bitcoin can be sent.

Best Bitcoin Wallets For:

There are a variety of different Bitcoin wallets, all of which serve a different target demographic, from beginners to more experienced users.

Beginners

Beginners will typically start with software wallets, otherwise known as hot wallets, all of which are connected to the internet and some way.

  • Coinbase Wallet – Coinbase is a cryptocurrency wallet that comes with each account created on the Coinbase cryptocurrency exchange. It essentially allows you to easily store any of the cryptocurrency tokens you buy and can easily sell them through this wallet afterward. While it provides a high level of convenience, it comes with a certain level of risk given the fact that it is a hot wallet, meaning that it is always connected to the internet. The main advantage it has over other wallets is cryptocurrency support.
  • Gemini – Gemini is a secure cryptocurrency wallet; however, it is one that works online as a hot wallet. The main advantage it has is its ease of use, which makes it extremely simple to navigate through. This is superb for newcomers, as all they have to do is tap or click around, and they’ll get used to buying, selling, or trading Bitcoin in no time.
  • Crypto.com Wallet – Crypto.com’s wallet is a DeFi wallet as well as a non-custodial wallet that serves an additional role of providing you with the full suite of DeFi services within a single location. You can also have full control over your Bitcoins, with access to your keys, and the wallet supports over 100 coins.

Experienced Users

Experienced users that want to keep their cryptocurrencies as secure as possible will typically choose a cold storage device, which is essentially any device that does not have direct access to the internet. These are what are known as hardware wallets.

  • Ledger Nano X – This is a cold wallet storage device that can be connected to a computer with a USB cable. However, this specific model offers the additional functionality of being accessible through a smartphone with the Ledger Live application.
  • Trezor One is a cryptocurrency hardware wallet with a built-in LED display for an easy-to-use interface alongside a PIN requirement for the wallet to be accessed and 2-factor authentication capabilities.
  • SafePal S1 – This is intended to be a quick as well as portable option, which is the size of a credit card and can easily store your cryptocurrencies such as Bitcoin. In order to transfer your Bitcoins, you can connect to the SafePal application through the usage of a local QR connection.

How to Add Funds to a Bitcoin Wallet?

Adding Bitcoin to your cryptocurrency wallet is actually quite simple.

The process is different when it comes to software and hardware wallets, so let’s dive in.

When it comes to Bitcoin software wallets, here is what you need to do:

  • Sign-Up for a cryptocurrency wallet. The first step is to sign up for a cryptocurrency wallet after you have done sufficient research on which one you would like to use.
  • Buy the cryptocurrencies you want to deposit, assuming you do not have any.Go to the exchange where you have created your account and purchase the cryptocurrencies you intend to deposit.
  • Deposit your cryptocurrencies into your private wallet. You need to enter your wallet address, and after it is selected, a pop-up will show on your screen, indicating that you need to confirm the transaction that is about to occur.

When it comes to Bitcoin hardware wallets, here is what you need to do:

  1. Unbox your cold wallet. 

You will need to unbox the package that came with your cold wallet and see all of the contents in it. Typically, you will find the device itself, as well as a USB cable and a keychain alongside a few paper cards, such as a blank recovery sheet and instructions.

  1. Connect the device. 

Many cold wallets will have a small LCD screen with a few buttons. These will allow you to navigate the menus, confirm any options, and sign transactions. Plug in your wallet through the USB port on your computer, which will work with the cable provided in the box. Once it is connected, you will see a welcome message on your display as well as instructions on how to use it.

  1. Install the Software. 

Cold wallets will have their own software packages that you need to install in order to use them, so navigate to the wallet’s website and download the official software. After that, simply click on “Get Started” and set up your device.

  1. Transfer your Bitcoins.

To get your Bitcoins onto your wallet, you need to go to your wallet and sign in with your passcode. Go to the wallets tab, pick the wallet you want to receive the cryptocurrency in, and copy that wallet address. Now, go to the exchange where you have purchased your Bitcoins, log in, and navigate to your balances. Here you can click Bitcoin and insert the previously-copied wallet address from your hardware wallet. Click on “Send” and approve the transaction. You should now see your cryptocurrencies on your hardware wallet.

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What Are the Different Types of Bitcoin Wallets?

There are two main kinds of Bitcoin wallets out there, the first ones are known as hot or software wallets, and the other is known as cold or hardware wallets. Let’s take an in-depth look at each one.

Hot Wallets – Software Wallets

A software wallet is any wallet that has a direct internet connection. This is typically in the form of a web wallet, found within the exchanges and given to you by default whenever you sign up for an account, or as a desktop or mobile wallet that you can individually download and set up on your device. The three most common types of software wallets include:

  • Web wallets – these are wallets that your account automatically gets whenever you sign up for a cryptocurrency exchange.
  • Desktop Wallets – software that allows you to store Bitcoin on your computer
  • Mobile wallets are wallets developed as a mobile application that you can download to your smartphone device.

Cold Wallets – Hardware Wallets

There are two main kinds of cold wallets, and these are hardware wallets and paper wallets. The main differentiating factor they have, compared to software wallets, is that they do not have a constant connection to the internet and are far less likely to be compromised.

  • Hardware wallets – these are physical devices, think along the lines of a metal credit card-shaped device or a USB-shaped device. They will either feature an LCD display or physical buttons through which you will be able to navigate them.
  • Paper wallets – these are the most basic kind of wallet. You essentially print out two QR codes. One of the codes can be scanned to showcase your balance on the wallet, and the other can be scanned to transfer your Bitcoin from that paper wallet to the online wallet you will be using to eventually sell it or trade it.

How Much Does a Bitcoin Wallet Cost?

Different wallets have different costs associated with them. Many software wallets will be free due to the fact that you get them whenever you sign up for an account at a cryptocurrency exchange. However, hardware wallets can be expensive, especially the premium ones built from high-quality materials which have special LCD screens.

How Do You Cash Out Your Bitcoin Wallet?

This is dependent on the type of Bitcoin wallet you have.

When it comes to software wallets:

  • You need to get the wallet address from the exchange or service, which can cash you out and fill it in.
  • Sign the transaction from the software wallet by simply clicking on it to confirm it and sign the transaction to make it official.
  • Once the service or exchange receives the funds, you can cash them out.

When it comes to hardware wallets:

  • Connect your hardware wallet to your computer using the included USB cable or the interconnected smartphone application, assuming it has that as an option.
  • Enter the wallet address where you will be sending your cryptocurrency tokens, typically a software wallet connected to an exchange or brokerage that can cash you out.
  • Sign the transaction and transfer the funds officially.

What to Consider When Choosing a Bitcoin Wallet?

You need to keep in mind a few things when choosing a Bitcoin wallet, and here are some of them.

  • Security (2-Factor-Authentication, multi-signature support)
  • Ease of use
  • Mobile support
  • Supported cryptocurrencies
  • Backup options
  • LCD Screen if it’s a hardware wallet

Final Thoughts

Hopefully, now you know everything you need to know when it comes to Bitcoin wallets. Ultimately, if you are constantly buying, selling, or trading Bitcoin, a hot wallet makes a lot more sense due to the fact that it provides you with easy access to your Bitcoins at any time. However, if you want to have the highest level of security or will simply hold onto your Bitcoins for a prolonged period of time, hardware wallets are the recommended option.

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
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Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Minimum Deposit
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Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes

FAQs

Is a Bitcoin Wallet Actually Necessary?

You are required to have a Bitcoin wallet in order to be able to send or receive Bitcoin due to the fact that it is your address.

What Is the Most Secure Type of Bitcoin Wallet?

The most secure type of Bitcoin wallet is a hardware or cold wallet device.

Do I Need a Crypto Wallet to Buy Bitcoin?

You are required to have a cryptocurrency wallet, as that is where you will receive the Bitcoin you purchase; however, many cryptocurrency exchanges will offer you a cryptocurrency wallet the moment you create an account.

Can I Keep My Bitcoin on an Exchange?

You can keep your Bitcoin balance on your exchange’s cryptocurrency wallet; however, this is the least secure way of keeping your Bitcoins.