BEST BITCOIN WALLETS IN 2022

Bitcoin wallets are digital programs that allow you to securely store, buy, and sell Bitcoins and other cryptocurrencies. Choosing the best Bitcoin wallets is important, and many factors go into deciding which one works for your needs.

 

The following Bitcoin wallet reviews are meant to educate anyone about how to securely own crypto coins in 2022.

 

There are two types of crypto wallets. Custodial and non-custodial. It will be paramount that you fully understand the differences between them both and the risk vs. reward for each, respectively.

 

A Bitcoin wallet allows you to interact with the Bitcoin blockchain and it stores your private key.

 

Non-custodial wallets do not provide you with the private key, while custodial wallets do.Read our detailed Bitcoin wallet reviews, where we fully compare the best of the best!

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What are Bitcoin Wallets?



A Bitcoin wallet is a program that allows you to send and receive Bitcoin and interact on the blockchain. Many people are still confused about what the blockchain is and you can think of it as the ledger, where every transaction gets recorded publicly; one of the benefits of decentralized finance.

Just like your current email, a Bitcoin wallet has an address and a password. However, in the crypto world, these are referred to as your wallet and key.

To choose the right Bitcoin wallet for you, consider whether owning your key (AKA password) is important. If you do not care about having complete control over your wallet, then you might consider an online wallet, or "hot wallet". (More on these later.)

But, if you do want complete control over your key, then a cold wallet will most likely be right for you.

 

Remember that online exchanges offer hot wallets online. You can still transfer your funds from most online exchanges to your cold storage wallet in most cases.

 

 

What is a Private Key?
 

Your private key is your Bitcoin wallet's password, which is automatically generated from your Bitcoin address. The key should be kept secret and never shared with anyone who you don't completely trust.

 

Anyone who has your private key will have control over your Bitcoins, so make sure you keep your key safe. Even though the private key gets generated from your Bitcoin address, it is impossible to figure out the key from the address by design.

Basically, the private key gets randomly generated by the wallet you choose and is different from the wallet's address. The purpose of the key is to protect your Bitcoins from being vulnerable to theft or attack.

Example - Once you go to the crypto exchange and download a Bitcoin wallet to your phone, laptop, or computer, the private key gets auto-generated.

 

Let's say your phone gets stolen! No worries because all you need to do is download a new Bitcoin wallet and install your private key to regain control over your Bitcoins.


Custodial

vs.

Non-Custodial Bitcoin Wallets
 

 

There are two ways to purchase Bitcoins, and they mean drastically different things that are important for you to consider. Non-custodial wallets are those where you own the private key (seed phrase) and have complete control over your Bitcoins and any other cryptocurrency you might own.

Custodial wallets are just like traditional bank accounts where you have an account on the bank's ledger but do not actually own that account or the money within it. Some entity has influence and ultimately control over your Bitcoins if you operate a custodial wallet.

Online exchanges like CoinBase.com and Crypto.com offer custodial wallets which are easy to use, and you can buy or sell crypto coins within seconds, via your smartphone.

 

But with convenience sometimes comes risk, and you don't own your Bitcoins if you are in this position.

 

Instead, the exchange owns the Bitcoin wallet, and they provide you with an IOU for the number of cryptocurrencies within your account.

On the other hand, non-custodial wallets provide you with the seed phrase (key) and full ownership over your Bitcoins and what you choose to do with them.

 

Remember, "not your key, not your Bitcoin.”



 

Types of Crypto Coin Wallets

 

 

The 2 main types of wallets are cold storage and hot wallets like those online:

 

Cold Storage Wallets

(The Most Secure Way to Store Bitcoin)

 

All cold wallets are non-custodial, and they are not connected to the internet where they are vulnerable to hackers and theft. Cold storage wallets give you complete control over your Bitcoin, Ethereum, or other crypto coins and recovery seed phrase.

 

Examples of cold storage wallets would be paper wallets, brain wallets, or hardware wallets.


 

Hardware Wallets

(The most secure way to hold crypto coins)

 

 

These are the most secure wallets you can own. Hardware wallets are devices that connect to your computer or mobile phone with a cord. You can then log into the provider's secure online app.

 

This is where you can purchase Bitcoin and other cryptocurrencies privately, and then store your crypto coins securely offline in your hardware wallet.

 

The technology within these devices prevents any malware or viruses to infiltrate your wallet. It works so well that you may use hardware wallets on public computers you don't even trust.

 

Some examples of trusted hardware wallets are the Ledger, Keep Safe, Arculus, or the Trezor.

 

Paper Wallets

(Trust at your own risk)

 

These are exactly what they sound like. You have a piece of paper on which you write down your seed recovery key phrase. Then, you securely store the paper somewhere safe.

 

Paper wallets are not secure because anything from water, fire, humidity, heat, or simply time can deteriorate the recovery key down so you cannot read it anymore.

 

If that were to happen, all your crypto coins could be lost forever. Still, some people choose to have paper wallets; just be careful about where and how you store the paper.

 

 

Hot Wallets

(The Most Convenient Way to Buy Bitcoins)

 

Whenever you purchase Bitcoins via an exchange, they will require that you get a hot wallet, or account on their platform. It is easy to do and even easier to log in to your smartphone and start trading within seconds.

 

Hot wallets allow you to quickly access the trading floor and make transactions fast

But hot wallets are the least secure because they are located online at the exchange and vulnerable to theft. Moreover, you do not own the key for the hot wallet you are operating from on the exchange.

 

In fact, you simply have an account and an IOU for the coins in your account, but it is all within the exchange's wallet.

 

Hot wallets happen to be the most popular type of wallet because of their convenience and speed.

 

 

Desktop Wallets

(Located on your laptop or home computer)


These wallets are also popular and can be safe, provided that your computer where the wallet and key get stored is free from malware or computer viruses. If you are 100% sure that your computer is free from any bad software, then a desktop wallet may work for you.

 

Although, it is near impossible these days to guarantee that any computer is free from malware since it can hide from anti-virus programs.

 

 

What Is the Best Bitcoin Wallet to Buy?



The best Bitcoin wallet you can buy will be the one that will protect you and your digital value the best. It is true that hot wallets, like web wallets, mobile wallets, online wallets are convenient, but they do lack the security needed to be secure.

If you just want to play around with some small amount of crypto, then get an account on Coin Base and start buying and selling Crypto.

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But when you are dealing with a significant amount of Bitcoin or crypto coins that you cannot afford to lose, then only a cold storage wallet will do. Preferably a hardware wallet, but the others will work if you can hedge their inherent risks, somehow.

Don't forget that you may have multiple wallets, too. For instance, you may want to easily access smaller amounts of Bitcoin within an online exchange. Your hot wallet on their platform will hold whatever you’re working with and makes the process of buying and selling faster and more convenient.

But, if you are planning to hold large amounts of Bitcoin, then you might want a hardware wallet to store that value offline more safely.

 

 

How do you get a Bitcoin Wallet?



When you sign up for an account on an online exchange, you will automatically be given access to an online wallet. If you want a hardware wallet, you may order them directly from the manufacturer's website. You would create a paper wallet yourself, using the seed words that come with your device.

 

 

What are the Best Bitcoin Hardware Wallets?



There are many different Bitcoin hardware wallets available today. But before you purchase one, be sure to do research and make sure that you are buying a reliable device from a reputable company. After all, this device will be holding your Bitcoin and other cryptocurrencies. Here are the best wallets we have found:
 


We have done the extensive market research to determine these hardware wallets to be the best, based on price, functionality, number of coins supported, and safety protocols.