While the concept of Bitcoin may be new to some, this well-known cryptocurrency has been around for over a decade. Bitcoin (BTC) is one of many digital currencies that have become fairly common investment holdings among tech-savvy households.
Proponents of cryptocurrencies argue that digital currencies are easier and safer, and come with better privacy, than traditional currencies. Because of its limited supply, bitcoin has shown up on some people’s radar as an investment opportunity as well. Even the widely used PayPal mobile app is offering an option to buy, sell, and hold cryptocurrencies in its wallet. However, it should be noted that cryptocurrencies are still risky investments.
In short, bitcoin wallets store a collection of bitcoin private keys. Typically, the wallet is password- or otherwise protected from unauthorized access. A bitcoin wallet is controlled solely by its owner, not distributed and shared like blockchain technology.
Best Bitcoin Wallets
Best Overall: Coinbase
Best for Hardware Wallet for Security: Trezor
Best for Desktop: Exodus
Best Hardware Wallet for Durability: Ledger
Best for Beginners: SoFi
Best for Free Buying and Selling: Robinhood
Best for Mobile: Mycelium
COIN BASE
summary
Coinbase is one of the easiest ways to buy, sell and hold cryptocurrency. With Coinbase, you can link a US bank account and easily transfer dollars in or out of your Coinbase investment and trading account. You can also use the standalone Coinbase mobile wallet.
This digital exchange and online cryptocurrency wallet provider is great for people who are new to Bitcoin. It makes buying and selling shares very similar to buying and selling shares through your brokerage account. Coinbase trading accounts offer over 100 different tradable cryptocurrencies, including Coinbase USD and Coin pegged to the dollar. Some coins can even reap a benefit.
Another great feature is Coinbase Earn, which gives you free cryptocurrency in exchange for watching videos and taking quizzes. Coinbase Pro is an active trading platform with its own advanced interface, API support, and fee structure.
If you use Coinbase, watch out for high fees and costs. There are fixed transaction fees, as well as Coinbase fee spreads when converting between currencies. These can add up quickly. Also, while it’s certainly not a common occurrence, Coinbase has experienced outages in the past that have left users unable to buy or sell.
TREZOR
summary
Trezor One is a secure device that includes multi-factor authentication and supports more than 1500 digital currencies. The more expensive Model T supports more coins, offers a better screen and interface, and a few other useful features.
Trezor hardware wallet is a device that can store your digital currencies offline. It is connected to a computer or smartphone. The device has a small screen that you can use to manage your secure connection. Currently, you can buy the entry-level Trezor One for $64 or the higher-end Model T for $195.
Just make sure you don’t lose your Trezor or your recovery information (password, PIN, and recovery seed), otherwise, your bitcoins may be gone forever.
EXODUS
summary
Exodus is a software portfolio that lives on your laptop or desktop computer. A version of the mobile app is also available. This digital portfolio includes an attractive user interface that puts several investor-focused tools at your fingertips.
Desktop First Wallet, which also integrates with Trezor wallets, turns your digital currencies like bitcoin and many others, into a wallet with charts and graphs. You can exchange and store coins directly on your desktop or in the app. It supports more than 100 different digital assets as well.
There is no account setup, so your currency and wallet are just for you. Exodus gives you a private key to access your bitcoins, as well as other useful security tools to keep your assets as safe as possible. Remember, however, that your private key is stored on your computer. Back up the key to make sure it’s secure, just in case your computer is stolen or dies.
LEDGER
summary
The Ledger Nano X and Ledger Nano S are hardware wallets that keep your bitcoins safe in an offline device. About the size of a USB flash drive, Ledger devices connect to your phone or computer to store and access your digital holdings. The device is enclosed in a stainless steel cover which makes it extremely durable.
With Ledger Live included, you can check your balance and send and receive coins. Ledger supports more than 1,800 digital currencies and tokens, so you are far from being limited to Bitcoin. Ledger Live even supports coin mode, where you can earn rewards based on your balance.
The base Ledger Nano S and Ledger Nano X with Bluetooth cost $59 or $119, respectively. The Nano S has a capacity of up to three applications simultaneously, while the Nano X accommodates up to 100 applications at a time. Apps may be required for certain currencies and for other purposes, which means that you may not be able to use all supported currencies at the same time with one device. Both use highly secure chips similar to those used in a chip-based credit card or passport.
SOFI
summary
SoFi is a financial company that offers investment, student, personal, credit card loans and other financial products. Within SoFi Invest, you can buy, sell and hold bitcoin and other cryptocurrencies. There is a minimum of $10 to start buying cryptocurrencies.1 When buying cryptocurrency, SoFi charges up to 1.25% of the transaction as a brand.
SoFi supports only 28 cryptocurrencies. This is not as impressive as some digital wallet providers and dedicated cryptocurrency exchanges offering hundreds or more. With SoFi, you can buy bitcoin, ethereum, dogecoin, cardano and 24 other currencies.
SoFi offers a great user experience and works well for beginners in the cryptocurrency field. It is good for buying and selling, but not for transfers to or from other wallets. Advanced users may find SoFi’s platform and trading system restrictive, but it’s a good choice for someone completely new to Bitcoin.
ROBINHOOD
Overview
Robinhood started as a free stock trading platform and has expanded to include bitcoin and other cryptocurrencies. Robinhood has both a wallet-like offering (so users can store currency) as well as an exchange like Coinbase (to buy/sell currency), so everything is in one place. However, you can’t withdraw or transfer coins to and from Robinhood using another wallet.
Robinhood is a mobile-first platform but has a desktop version, available on the web, too. And what really sets Robinhood apart is that it’s completely free to use. There are no commissions when buying or selling bitcoin. Robinhood customers can currently buy, sell, and hold bitcoin, as well as six other cryptocurrencies.
Robinhood has experienced some outages in the past, so it may not be quite as reliable as some other wallet providers.
MYCELIUM
summary
Mycelium is a popular cryptocurrency wallet for Android and iOS devices. The website says that this wallet is designed for people who are not familiar with Bitcoin, but it can be a bit intimidating for people completely new to the cryptocurrency space. It works well for experienced crypto enthusiasts who want features like QR code-based payments, offline storage, and control over your private keys. Mycelium offers secure online accounts that work with hardware wallets, a Glidera exchange API that integrates buying and selling features and other integrations.
Mycelium does anything you might need in cryptocurrency, including sending and receiving bitcoin, ethereum, and other coins using your smartphone. It’s free to install and get started, although you may encounter fees from the exchanges you use with your wallet.
Final verdict
A cryptocurrency wallet is a must if you want to store your cryptocurrency securely. Without a secure wallet, you will be leaving yourself vulnerable to security breaches that could cost you a lot.
You’ll need to find a wallet that combines the security you crave with the access you need. Coinbase is a good place to start your search for your ideal cryptocurrency wallet. But don’t rule out other options without taking a closer look.