Types of services for storing cryptocurrency. Which bitcoin wallet is better to choose
Before buying or mining bitcoins, the user should first take care of a secure way to store the cryptocurrency. There are different types of wallets available in 2020, however, there is no optimal solution. Therefore, you should consider the different options available to choose the most optimal method depending on your goals and needs.
Types of wallets for Bitcoin
All available types of wallets for storing Bitcoin can be divided into several types:
- online wallets;
- hardware (gadgets);
They differ from each other not only in the methods of entry and use, but also in the level of security. To choose a bitcoin wallet, you should consider each storage method separately in more detail.
Desktop versions for PC
A desktop wallet is a program that can be downloaded to a computer running Windows, Linux and macOS operating systems. Such wallets usually have a fairly high level of reliability and provide complete control over the wallet.
Among the most common desktop versions, Bitcoin Core is the official wallet of the Bitcoin blockchain. It can be downloaded from the Bitcoin.org website. Among its advantages are:
- High level of protection.
The owner of the wallet interacts with the blockchain directly without intermediaries. It is more difficult for cybercriminals to obtain data to access the wallet, but the user is independently responsible for the safety of the login key. If there is a virus on the computer, there will be a possibility of bitcoin theft.
- Choice of commission.
When conducting a transaction, the user independently sets the amount of the commission. If you set the commission too low, the transaction will hang on the network. To avoid this situation, it is important to set the recommended commission.
The wallet is open source. Any developer can audit and confirm the absence of hidden programs and vulnerabilities. Research like this is usually shared on forums.
Bitcoin Core provides the ability to create an unlimited number of addresses. To receive payments, you can create a new wallet, and then withdraw funds to the main address. Also, the developers added the ability to connect the Tor network, which allows you to hide the IP address when conducting transactions.
However, Bitcoin Core also has disadvantages. The program stores all transactions since the creation of the Bitcoin network, so its weight is constantly increasing. In 2020, client installation requires up to 400+ gigabytes of free hard disk space. If your device does not have enough memory, then you should consider other options for storing bitcoins.
Mobile apps can be installed on iOS and Android. Their level of reliability is slightly lower than that of desktop ones, since they interact with the blockchain through intermediaries or use simplified transaction verification without using the full blockchain node.
Among the advantages:
- small size – mobile programs do not take up much space, since they do not store all blockchain data.
- easy to install – they can be downloaded from the official Apple Store and Google Play;
- quick access – your smartphone is always at hand, so using the mobile version for daily payments is easier than the desktop one.
Among the cons are:
- lack of Russian language – some programs have only English interface;
- limited functionality – they cannot use methods to increase privacy, for example, there is no way to connect Tor.
BRD is the best Bitcoin wallet for smartphones. It can be installed for free on iOS and Android. It has all the benefits described above and also supports SegWit technology.
Web versions of wallets
The web version of the wallet allows you to interact with the Bitcoin network online. The user does not need to download the program, since the interaction with the blockchain takes place through an intermediary in the form of a website or a browser plugin.
Among the advant ages of such wallets are:
- simplicity – you don’t need to install anything and you can go straight to creating an address;
- multicurrency – you can store different currencies;
- availability – you can enter the wallet from any device;
- access restoration – some services store the login key on their own server, and the user uses e-mail and password for authorization, which can be restored in case of loss.
Among the disadvantages of using a web service, an increased risk of hacking is noted. Because of this, it is not recommended to store large amounts on the exchange and third-party services, as they are often subject to hacker attacks. Therefore, they are only suitable for making frequent payments, not long-term storage.
If you are looking for the most reliable solution, then Coinbase can be your go-to. This is one of the few services that has a high level of reliability and did not get into scandals related to the theft of cryptocurrency. Coinbase is enjoying a lot of hype both in Russia and abroad.
A hardware wallet looks like a small flash drive with a display. Such electronic gadgets are created to securely store digital currency. To conduct a transaction, you need to connect the device via the USB port and enter the PIN code. This method of storing money is considered the most reliable, since even if personal data is lost, attackers will still not be able to use bitcoins on the wallet.
The advantages of such gadgets include:
- the highest level of protection;
- the ability to store different currencies;
- safe use from a third-party computer.
Hardware wallets have one drawback – they are expensive. They are more suitable for users who intend to firmly connect their lives with cryptocurrency and plan to store a large amount of funds in bitcoins.
Among the good solutions on the market, you can choose a Bitcoin wallet between:
- Ledger Nano S;
- Ledger Nano Blue.
Which wallet to choose
Having considered all the available solutions for storing cryptocurrency, the following conclusions can be drawn:
- the desktop version is best suited for those who want to ensure maximum security, but are not yet ready to spend money on additional gadgets;
- mobile – better suited for storing a small amount of currencies if the user often pays in stores or transfers money to other network members;
- online wallet – suitable for accepting payments and trading on the exchange;
- hardware – the best option for storing large investments.
- If it is difficult to decide which wallet to withdraw Bitcoin to, you can use several options at once. If necessary, you can transfer cryptocurrency between your addresses at any time.