Top 7 Bitcoin Wallets: How to Keep your Cryptocurrency Safe

Get an idea to protect your digital currency and get more investments out of it
Cryptocurrency Wallets

Keep your cryptocurrency safe without losing its value. Image – Shutterstock.com

Protecting cryptocurrency isn’t always easy, especially when you have high returns and a growing wallet.

However, it can be accomplished with the right cryptocurrency wallet. You see, the best way to store cryptocurrency is not in a conventional bank account.

There are ways to store your cryptocurrency without it losing value and in a safe place.

It’s called a cryptocurrency wallet and it is a secure place to store, send and receive digital currency in the form of Bitcoin and others.

Many people already have an official wallet but if you use cryptocurrency, you should shop around for the best way to store and use your money.


What is The Most Secure Cryptocurrency Wallet?

Secure Cryptocurrency Wallet

Different types of Bitcoin wallets the best way to store your money. Image – CoinDesk.com

Simply put, a cryptocurrency wallet works as software. Designed to help users view their balance and make transactions, each wallet is used for a specific cryptocurrency.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

Security then is directly linked to getting the right kind of cryptocurrency wallet for the specific type that you need.


7 Best Cryptocurrency Wallets

Using a cryptocurrency wallet is the best way that you can keep track of your money.

While using the software you can also learn ways of how protecting cryptocurrency can get the most out of your investments.

Using These 7 Best Cryptocurrency Wallets Is a Good Place To Start

1. Desktop Wallet

The most common type of wallet can be referred to as a desktop wallet because it is on your computer.

Also known as a “desktop,” you may remember this term from computer class.

This term can also be used to describe smartphone apps that work as cryptocurrency wallets.

2. Mobile Wallet

Mobile Wallet

A secure wallet is a must if you want to dive into crypto. Imag- Shutterstock.com

Today, smartphone apps that work with Bitcoin and other cryptocurrency use this term to describe a typical coin trading application used on smartphones and other mobile digital devices.

3. Full Node Wallet

What if you could control your private keys while also hosting a full copy of the blockchain?

Imagine a cryptocurrency wallet that offers you just that while also using every coin type.

Essentially, that is what a full node wallet is. This cryptocurrency wallet works easily because every coin has an official wallet of this type. Usually there is also a link on the website.

4. Custodial Wallet

Custodial Wallet

A custodial wallet is any wallet where the private key for controlling your coins. Image – forum.bitcoingold.org

Some cryptocurrency wallets do not allow you to control your keys directly.

Known as custodial wallets, most exchanges function this way. Using a wallet that allows you to control your private keys is also optional.

However, that is in direct contrast to a custodial cryptocurrency wallet.

5. Online Wallet

This refers to any cryptocurrency wallet that works using the Internet. The online wallet is completely web-based but you don’t have to download an app.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

The online wallet is data hosted on a server (real or virtual) to offer a trading platform you can use.

Some online wallets like this allow encryption of private data, making it somewhat of a hybrid so you can send data online without worrying about security.

6. Hardware Wallet

Specifically designed to hold cryptocurrency and keep it safe, hardware wallets are able to go online to make transactions.

The devices include USB devices, along with others that gather data, make transactions and then are held offline for security.

7. Paper Wallet

Paper Wallet

A paper wallet is an offline mechanism for storing Bitcoins. Image – Shutterstock.com

This is a type of printed QR code for public and private keys. Using a print out of the code lets you send and receive cryptocurrency using a “paper wallet.”

This option allows users to avoid digital storing of cryptocurrency by creating a paper copy of the data.


Is it Safe to Leave Bitcoin in Coinbase?

Bitcoin is just one name for cryptocurrency. Coinbase is a type of custodial wallet where beginners can learn more about their cryptocurrency including where to keep their funds, exchange and other tips on how to work within the network and its functions.

For new users, Coinbase is one of the safest cryptocurrency software networks to use.

It allows users to store a variety of Ethereum-based tokens for more freedom and flexibility in your wallet.


Is Coinbase a Cold Wallet?

Understanding what a “cold wallet” is first means that you need to know the definition of a “hot” wallet.

This describes a cryptocurrency wallet with a live connection to the world wide web.

Without a connection to the internet a “cold wallet” is simply hardware, unplugged in a safe place.

In a cold wallet, the cryptocurrency you want to hold cannot be attacked by hackers due to the off-line status of the device.

With more protection than a hot wallet, a cold wallet lets your mind rest knowing the wallet cannot be hacked.


Can I Use Coinbase As a Wallet?

Coinbase

Use Coinbase wallet as a source of funds to make instant purchases. Image – Shutterstock.com

Beginners looking for a cryptocurrency wallet that works for them can use Coinbase.

Often recommended for novice and professional cryptocurrency users, Coinbase allows trading of Bitcoin, Bitcoin Cash (BTC), Ethereum (ETH) and Litecoin.

Most people prefer Coinbase as a cryptocurrency wallet because it offers one of the most user-friendly networks.

The software itself is ideal for beginners as it allows you to exchange Bitcoin wallet, Ethereum wallet, Litecoin wallet and Bitcoin Cash wallet all in one platform.

Over time, users who master Coinbase can start using GDAX and other exchanges like Bittrex, Binance or Kraken.


What is the Best Way to Store Cryptocurrency?

Using one of these 7 cryptocurrency wallets is the best way to keep your money safe.

However, you may realize over time that during trading your cryptocurrency could be stolen. Internet hackers are real and they have been known to develop sophisticated ways to take your money.

For this reason, using a cold wallet may help to protect your cryptocurrency while you are not actively connected to the Internet.

When storing your money in a cryptocurrency wallet, try out one of these best 7 ways to store cryptocurrency.

Then, consider the process of building a network from the bottom up.

If you are a beginner, starting your portfolio with Coinbase may be a good idea as many financial analysts say it is the easiest software to use.

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Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Author

Contributor : Adolph Obasogie

Gb Adolph Obasogie is a Chartered Accountant, and he worked for several years as an Independent Consultant for World Bank projects in emerging markets. As an Emerging Markets Analyst, he has analyzed several portfolios for clients in the Middle East, North America, Europe, and Africa. He has a deep understanding and insight on the workings of Cryptocurrencies and their real-world applications. You can connect with him on Linkedin.

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