A Bitcoin wallet is where we store the information necessary to transact bitcoins. While wallets are often described as a place to hold or store bitcoins, due to the nature of the system, bitcoins are inseparable from the blockchain transaction ledger.
A better way to describe a wallet is something that “stores the digital credentials for your bitcoin holdings” and allows you to access (and spend) them. Bitcoin uses public-key cryptography, in which two cryptographic keys, one public and one private, are generated. At its most basic, a wallet is a collection of these keys.
The only way to properly store your bitcoin wealth is by using a safe wallet solution. It is hard to quantify what makes one wallet safer than the next, as users have their individual preferences and needs in this regard. However, there are some wallet solutions out there that take keeping funds safe to a whole new level.
On the software side of things, there are quite a few different bitcoin wallets to choose from. However, one of the primary wallets people use in this regard is Multibit, due to it being lightweight and easy to integrate with hardware solutions. Although Multibit’s interface looks rather traditional, the wallet receives regular updates to improve security. A convenient and secure software solution to store funds, that much is certain.
Any bitcoin wallet provider providing cold storage and multi-signature support deserves to be on the list of top secure bitcoin wallets. Armory checks the right boxes in this regard, as the software stores private keys in an offline computer. This makes it impossible to steal bitcoins, unless someone has access to the physical location of the computer. No one knows where this location may be, though. Moreover, giving users the chance to set up cold storage solutions themselves is a big bonus.
On the mobile front, there is a lot of competition for the crown of being the most secure wallet solutions available today. Mycelium has gotten a lot of support in this regard, as they are considered to be a must-have secure bitcoin storage application. Their HD wallet support, as well as an option to delete the private key from the device and integrate “watch only” accounts make Mycelium one of the top secure mobile bitcoin wallets.
Hardware bitcoin wallets have become quite popular over the past few years. That is only normal, as storing bitcoin in a secure manner becomes more important than ever. Hardware wallets are designed to facilitate secure funds storage, with quite a few companies launching their products in recent years. KeepKey is one of the top solutions in this regard, as the device requires users to manually approve every transaction. Moreover the device has PIN protection, adding an extra layer of security.
1. LEDGER NANO (S)
The Ledger line of hardware bitcoin wallets can not be ignored. The company prides itself on making affordable yet secure bitcoin wallet solutions. There is no reason to pay hundreds of dollars for a device when the same goal can be achieved with a device costing a fraction of the price. Don’t let the cheap price fool you, though, as every one of Ledger’s devices is more than capable of keeping your wealth safe.
All of Ledger’s wallets come in the form of a USB-size, although there are minor differences between each type. The Ledger Nano S is by far the most popular hardware wallet, as it is capable of storing both Bitcoin and Ethereum. Moreover, users can complete wallet actions through the display on the device or by using the browser plugins. An affordable, robust, and secure line of products, that much is certain.