How To Choose A Bitcoin Wallet: When you randomly select your Bitcoin wallet, you’re wrong
This may be the worst one to cause losses in bitcoin, all at once. Not only that, it’s not a wise decision to choose your purse based on suggestions from a friend who’s a day older than you in crypto.
If choosing a bitcoin wallet, one has to be careful because the wallet is the one thing where your private key and public key live that can destroy all your bitcoins if compromised.
Recently, I listed different types of bags in a thorough write-up on bitcoin bags, but not when to use them.
I did this intentionally because of which wallet to use and when there is another topic that needs such a dedicated guide.
So I’m going to share how to choose a bitcoin wallet with you today.
This guide will help you to understand the various wallet choices that you have and which one you should choose to store a small or large amount of bitcoin.
How to choose a bitcoin wallet (Complete guide)
When selecting a reliable bitcoin wallet, whether it is a software or hardware wallet, one must judge it based on the following criteria
1. Private key control: a wallet where your key is stored and protected.
2. Seed backup key and PIN code for backup and security features.
3. Developer Community: Active sustainability development community.
4. Hot / Cold Wallet: A hot or cold wallet is a wallet.
5. User-friendliness: Elegant UI for quick and easy use.
6. Compatibility: Various operating systems compatible.
7. HD Wallet: A wallet creating new addresses alone.
8. KYC: a wallet not needing KYC
These are some things you should be searching for in any form of wallet you will be used for any reason.
But it’s more to it.
The purpose for which you will be using a particular wallet plays an important role in choosing what type of wallet you want. Some of the goals are:
- Long term savings
- Daily transactions
- Daily purchase/sale or trade of crypto
- Short term HODL
Choosing the Best Bitcoin Wallet (Make it easy for you)
Based on the above requirements and objectives, a good bitcoin wallet can be easily selected for yourself. How do you do it? Please let me know in depth.
Hardware bags are wallets that fulfill all the criteria mentioned. Moreover, they are cold wallets that are not exposed directly to the Internet. So if you’re someone who wants to store your savings for a longer period of time, then your hardware wallets are the best option for you.
Moreover, they are HD wallets that do not again use the same public address. You can also connect to an infected computer using a hardware wallet.
We trust in some hardware wallets:
- Ledger Nano X
Explain that its purpose is to keep for a short period of 2-3 months some cryptocurrency. A desktop wallet is a good way to go in this case. Desktop wallets are hot wallets that connect as soon as online as possible.
But to meet the short-term requirement, they provide back seeds, PIN codes and other security features of the HD wallet. Always, note, any malware or viruses on your computer will always be at risk for this form of wallet. Some wallets in this category that can be checked for are:
Other types of software wallets include mobile wallets and web wallets. Most mobile wallets meet all the criteria I mentioned, but very few web wallets meet at least some of the criteria we need.
Online wallets are like coin base wallets. Where you need to do your KYC and your private key is never monitored. Also in this category are built-in wallets of centralized exchanges such as Bittrex or Binance.
Therefore, if you want to use these wallets with security measures such as 2-FA authentication for daily crypto trading, that’s fine, but for a long time or even for a few days, it risks storing your crypto here is complete.