Best Bitcoin Wallets in 2022
Wallets are the principal means of storing cryptocurrencies. You’ll need to take charge of the security of your crypto assets, unlike stocks and bonds, that are managed centrally by brokerage firms.
The term Bitcoin wallet is normally thrown around, and to those beginning their investment journey, it can be hard taking in all the crypto jargon. This article looks to untangle the seemingly complicated subject of Bitcoin wallets. We’ll look at some of the top wallets, the considerations you need to make, plus other vital tips.
Here’s Our List of Top Bitcoin Wallets in 2022
Want a quick start? See below a list of top Bitcoin wallets.
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!
Best Bitcoin Wallets For:
Bitcoin wallets come with different features and designs. Some favor experienced investors, others large cooperates, while some cater for beginners. Let’s look at this in detail.
These are wallets that are simple to use and can be used by just anybody.
It’s a popular software wallet that provides desktop and mobile versions. Apart from securing crypto, the wallet offers a variety of features, including a built-in exchange. Exodus stands out because it’s a publicly-traded company, easy to use, and is preferred by many beginners
Live charts and portfolio
Desktop and mobile versions
Sync feature between desktop and mobile app
24/7 customer support
Good customer support
A wide variety of cryptocurrencies
Simple and intuitive user interface
Trade function available
Code is not open source
No support for crypto to fiat conversions
This is another software wallet and supports Bitcoin only. The company was formed in 2017 and offers both a desktop and mobile version.
The support for the lightning network and sending transactions in batches makes Blue wallet different. It is a relative newcomer to the scene and sets itself apart by offering unique features.
Multiple wallet architecture
Supports the lightning network
Wallet recovery options
Send batch transactions
Unique security features
Fees and transaction control
The onboarding process could be simpler
Lack of 2FA
Supports Bitcoin only
Ledger Nano S
The Ledger Nano S is a hardware wallet. It comes in the form of a small USB-like device. It's beginner-friendly and a good entry point for hardware wallets. Unlike Exodus and Blue wallet, Ledger Nano S stores crypto completely offline.
Install up to 3 apps
Buy, exchange, and grow your crypto
Multiple platform compatibility including MAC
Secure chip technology
Supports a large variety of crypto.
Provision for recovery of your crypto assets
Integrates with many software wallets
It’s possible to install and run third-party apps
Lacks the capability to connect via Bluetooth
Software is not open source
These users require advanced features to their wallets. However, a majority still will cherish simple and intuitive interfaces. Security-conscious investors may dig deeper into how the wallet operates and much more. Here are some wallets for advanced users:
Mycelium is another popular and trusted Bitcoin wallet. It’s mobile-based and is highly tailor-made for seasoned users. It’s only available on mobile and offers a local trader feature unlike Exodus and Blue wallet
Support for ERC-20 tokens
Address book for common addresses
Deterministic signature feature
Local trader feature
Manage your app on multiple devices
Dynamic fee handling
Support for the Trezor and Ledger hardware wallets
Recovery options available
Simple and intuitive user interface
Support for mobile-only
Trezor T is one of the most renowned hardware wallets around. It’s more expensive and packs lots of great features.
Universal 2nd-factor authentication.
Sign and encrypt with GPG
More cryptos compared to Trezor One
Difficult to use for beginners
Wasabi is a software that offers mobile and desktop versions. It's a non-custodial Bitcoin wallet with an emphasis on privacy. Wasabi has a steeper learning curve than the other software wallets but is more advanced.
Free and open-source
coin -control features
Compatibility to multiple devices
Complex for beginners
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.
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.
Step 1: Visit the official Binance website and login into your account
Step 2: Click on the withdraw tab
Step 3: Log in to your Exodus account and navigate to your Bitcoin wallet
Step 4: Click receive and copy the receiving address.
Step 5: Go back to Binance, and from the dropdown menu, select Bitcoin.
Step 6: Paste the Exodus receive address and select the correct network address
Step 7: Enter the amount you want to transfer from Binance to Exodus wallet
Step 8: Confirm that everything is okay and execute the transfer.
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.
What Are the Different Types of Bitcoin Wallets?
There are two main types of crypto wallets in use today. Software wallets that operate online and hardware wallets that work offline. See below for more details.
These make your crypto account management similar to operating a bank account or a brokerage account. You can be anywhere, anytime, and log in to the application to send, receive and use your crypto.
Most software wallets allow you to have custody over your private keys. Remember, “Not your keys, not your coins.” Software wallets exist in three different types. See below:
Web Wallets (Exchange Wallets): These allow you to open an account and operate from your browser application. These mostly exchange wallets such as Paxful wallet. Please note that this is the least secure form of a software wallet. Again you'll not have ownership of your private keys.
Desktop Wallets: These are wallets that operate on your personal computer. Popular examples include Exodus and the Atomic wallets. Although they operate online, you’ll have custody over your private keys.
Mobile Wallets: You can download and operate these from your smartphone. You can also manage your portfolio send and receive crypto. Blue wallet is a great example of a mobile wallet.
These store your Bitcoin private keys offline. Simply put, cold wallets keep your assets away from the internet where there’s high vulnerability. We have two types of cold wallets:
Hardware Wallets: These are small physical devices that safely store your secret keys. They are used mainly by security-conscious people, long-term investors, or storing considerable Bitcoin investment.
Paper Wallets: No software or complications exist with paper wallets. It’s just a piece of paper where your private and public keys are printed. Sometimes, they’ll come in the form of QR codes on paper. Store your paper wallet safely, e.g., by use of a safe.
How Much Does a Bitcoin Wallet Cost?
Bitcoin wallet prices range from free to $200. The cost mostly depends on the type of wallet, features, and brand. Below are some examples:
Bitcoin Wallet/Model Wallet Type Cost
Ledger Nano X Hardware $119
Ledger Nano S Hardware $59
Trezor One Hardware $59
Trezor T Hardware $159
Exodus Software Free Download
Metamask Software Free Download
Atomic Software Free Download
Wasabi Software Free Download
Electrum Software Free Download
Blue wallet Software Free Download
Hardware wallets come out as the most expensive. You'll get most software wallets for free. However, please note that software wallets may charge minimal fees for transactions. For instance, electrum charges a default fee of 0.2mBTC, while the Atomic wallet charges a 2% fee.
How Do You Cash Out Your Bitcoin Wallet?
Well, it's time to cash out. But how do you get the Bitcoin from your wallet to real cash? Please note that you’ll not be able to do it from inside your wallet. You’ll have to send your Bitcoin from your wallet to crypto to fiat exchange such as Binance or Paybis. Other possible options are P2P marketplaces and Bitcoin ATMs.
Let’s take an example and explain how you’d, for instance, cash out from Exodus if you have an account on Coinbase:
Step 1: Log in to your Exodus wallet and navigate to the wallet icon at the top
Step 2: From the crypto list, select Bitcoin and click on send.
Step 3: Log in to your Coinbase account
Step 4: Click trade and then deposit
Step 5: In the currency Type field, select Bitcoin
Step 6: Copy the address shown(receive address)
Step 7: Go back to Exodus and paste the address from Coinbase here.
Step 8: Enter the amount you’d like to send
Step 9: After confirming the address, click send. (Please note that Bitcoin transactions are irreversible, and care should be taken to guarantee correct details)
Step 10: Sell your Bitcoin on Coinbase
What To Consider When Choosing a Bitcoin Wallet?
Before selecting a wallet, there are factors you’ll need to consider. Here are the top ones:
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.
A Bitcoin wallet is a program that stores your private and public keys. It also enables interaction with the Bitcoin blockchain, making it possible to send and receive Bitcoin. Other uses of a wallet include secure storage and managing your portfolio.
Exodus comes out on top as the best desktop app among the wallets we've analyzed. On the other hand, the Trezor T hardware wallet is the best for advanced users. For those who’d like to trade and manage their Bitcoin assets on the go, the mobile-based Mycelium Bitcoin app is the best.