Bitcoin is the most popular cryptocurrency. According to the analytical company Statista, there are more than 42 million bitcoin wallets in the world as of 2020. The number of users continues to grow rapidly, but not all of them are well aware of how to store bitcoins safely.
Many users buy and store cryptocurrency on exchanges such as Binance, BitMEX, CEX.io etc. But the deposit only displays the balance, and the coins themselves are on wallets belonging to the crypto exchange. In other words, you do not actually own your assets and risk losing them in case of hacking or for variety of other reasons.
You have to own your own private keys to fully control the assets in your wallet. And also you should store backup copies (seed phrase or mnemonic password) to restore access to the wallet. In this article, we will look at the best wallets for storing cryptocurrencies in 2020.
What are cryptocurrency wallets?
There are different types of crypto wallets. They differ in several ways:
- Simplicity and convenience of use (interface, connection speed, etc.);
- Mobility (whether they are linked to a specific device or not);
It should be noted that the more secure the wallet is, the less convenient it is to use it. But in terms of convenience, the key factor will be the user interface.
Types of cryptocurrency wallets
- Web wallets or online wallets. They are usually easy to use and support simple registration. Access is provided via a cloud service, which allows users not to download the full blockchain, but to access it via a web client. But web wallets are centralized and are considered mediocre in terms of security.
- Desktop or local wallets. They can be either lightweight (without downloading the entire blockchain) or full (the entire history is uploaded to the hard disk). They are the PC client. Full wallets, such as Bitcoin Core (the original Bitcoin wallet), are more reliable and decentralized in contrast to “light” clients.
- Hardware wallets. These are ”cold” wallets, i.e. they allow you to store cryptocurrency offline without an Internet connection. They are considered the most secure, but they cost money — on average from $50 to $150, depending on the functionality or the number of supported currencies.
- Paper wallets. The most rarely used type. They are inconvenient and can easily be damaged. In addition, they are easy to compromise if you show them in a public place. However, with the right approach, they will also be among the most secure wallets, and you will not have to buy a hardware wallet to achieve similar security.
We found out what kind of crypto wallets there are. Let’s now look at the best cryptocurrency wallets of 2020.
Ledger Nano S
It is arguably considered the best and most secure bitcoin wallet in existence. Ledger Nano S is supplied by three companies that are considered the best hardware wallet manufacturers in the world: Ledger, Trezor, and KeepKey. Wallets support a wide range of popular cryptocurrencies and combine the functions of both hot and cold storage.
If you are going to store a large amount of money, then Ledger Nano S is the best choice, because it is the most secure one. And you can manage your assets offline via the desktop version with an intuitive interface. You can find all the necessary manuals on the site.
Price: from $70 (supports up to 18 assets) to $140 (up to 100 assets).
Another secure physical device for cold storage of crypto assets. It is no less secure than Ledger Nano, but it is inferior in functionality. Trezor contains a password Manager, two-factor authentication feature for protecting funds, and other important options.
The wallet provides protection against lost passwords, but focuses on security. Therefore, if you lose access, it will not be easy to restore it.
Price: from €48 to €150.
This is a large international platform and one of the few platforms that are regulated by US financial institutions. Coinbase allows you to exchange assets directly inside your wallet. Thus, the platform combines functionality of a wallet with that of an exchange. But its main drawback is its centralization. Regulatory requirements force users to confirm their identity, and Coinbase collects information about customer transactions.
If you want to use Coinbase, you will have to forget about anonymity. In this case, it is better to give preference to other, more confidential wallets. In addition, no one guarantees that your funds will not be blocked one day.
This wallet is notable for offering the widest list of options for its users: desktop (for Windows, Linux, and MacOS X), hardware, and mobile versions. It contains a simple and intuitive interface, which makes it perfect for beginners, but not the safest one, since there is no 2FA or multi-signature feature. Depending on the amount, you can choose a more optimal option for storage. It supports multiple popular currencies.
A multi-platform and multi-currency secure crypto wallet. Another industry veteran — Jaxx was founded in 2014. It supports more than 90 cryptocurrencies, and allows you to exchange assets directly in the interface. It is convenient, but expensive. It contains many features, statistics, and news on cryptocurrencies. It is available in the App Store, Google Play on PC, and as a browser extension.
One of the most popular and first desktop wallets, founded in 2011. Electrum is an open source wallet. It allows you to store cryptocurrency without downloading the blockchain, which speeds up the program, and provides advanced security features: multi-signatures, two-factor authentication, and a passphrase (an extension for the seed phrase), which allows you to create hidden wallets.
Its two main disadvantages are partial decentralisation (only a part of operations is processed by the client, but transaction validation takes place on the server) and support for the only cryptocurrency — Bitcoin. The wallet has a mobile version.
One of the best online wallets. Its key advantage is ease of use and convenience. For small limits, you do not need to verify your account. Crypto wallet Blockchain.com is suitable for storing small amounts. But the wallet is centralized and insecure. Therefore, it is better to use more reliable options for storing substantial amounts. The wallet has a mobile version.
Where to buy and sell cryptocurrency
We have reviewed the most popular and reliable wallets for their respective type. Now that you have learned how to store cryptocurrency safely, you need to make a profitable purchase. If you want to learn how to buy and sell Bitcoin profitably and quickly, then look at the Changevisor service. Here you will find a large number of exchange directions and payment methods.
- Fast and secure purchase. Coins are immediately sent to your wallet without intermediaries;
- A wide selection of sites. The service monitors a lot of sites and works only with reliable exchanges that users can trust. You can read the reviews;
- There is a large number of payment methods. You can buy cryptocurrency for dollars via PayPal, credit cards, bank transfer, etc.;
- Favorable rate. Offers are sorted by the value of the exchange rate. Choose a payment method, and you will see the best offers for buying cryptocurrency.
Visit Changevisor to quickly and profitably buy cryptocurrency with PayPal dollars, using a credit card or any other convenient method