Your quest to find the best bitcoin wallets is a noble one. Whether you’re looking to day trade or use BTC as a longer-term investment, you must store your assets in a secure digital space.
Bitcoin, or BTC, is the most popular fungible token out there. Despite its relative volatility, BTC has continued to push forward while other coins have come and gone.
In this post, we’ll cover the 7 best options for storing your BTC. From online trading platforms to physical hardware, you’ll get a rundown of the best products to choose from.
7 Best Bitcoin Wallets For 2023
Here are the 7 best Bitcoin wallets available today:
- 🏆 Coinbase Wallet: Best Overall
- Trezor Model T: Best Security
- Trezor One: Best Rate
- Electrum: Best for Experienced Bitcoin Users
- Exodus: Best for New Bitcoin Users
- Mycelium: Best for Mobile Users
- Ledger Nano X: Best Hardware Wallet
1. Coinbase Wallet
Coinbase is likely the most well-known crypto marketplace. Coinbase allows you to make crypto exchanges with a wide variety of coins through its website and mobile app.
Coinbase also offers a digital wallet that you can manage with your mobile device or as a Chrome-compatible desktop wallet.
In addition to BTC, Coinbase Wallet is compatible with more than 500 different cryptocurrencies like Ethereum (ETH), Litecoin, Dogecoin, and Bitcoin Cash.
You don’t need a Coinbase account to take advantage of its wallet, where you can store all of your digital assets, including non-fungible tokens (NFTs).
The wallet is secured by two-factor authentication as well as optional cloud backups.
2. Trezor Model T
The Model T is Trezor’s second generation of hardware wallets. You can navigate your wallet with a helpful touch screen, and it comes with a Type-C USB cord to connect to your devices.
The Model T supports more than 1,200 different coins and allows for access to third-party exchanges that may not be available with other hardware.
For security, the Model T employs key encryption, easy backup options, a password manager, and multi-factor authentication.
Some have also suggested that the device’s lack of Bluetooth connectivity makes it less susceptible to hacking.
All Trezor wallets are compatible with all three major desktop operating systems, but on the mobile end, only Android is supported.
At $190, the Model T is one of the more expensive hardware options, but it comes with the features to back up the price.
3. Trezor One
If you’re looking for a Trezor wallet at a lower price point, the Trezor One might be a good fit.
The wallet is similar to the Model T, minus some features. There’s no touch screen, so you’ll navigate the wallet with a pair of buttons.
The Model T also supports more cryptocurrencies, but with more than 1000, the Trezor One still comes with plenty of options. As an older model, the Trezor One also has a slower processor than the newer version.
For security, the Trezor One comes with most of the same features as the Model T, so you can rest assured that your assets are in good hands either way.
Overall, unless you’re looking to trade in the widest variety of coins, the Trezor One should serve you well — and at $60, it’s a far more affordable option.
Electrum is one of the original BTC web wallets and has been around almost as long as the coin itself. It’s a hot wallet that is compatible with hardware from Trezor, Ledger, Keepkey, and more.
The software is free and decentralized and focuses entirely on BTC storage. At first glance, the user interface may seem too simplistic, but make no mistake that Electrum is one of the most secure options for BTC storage.
The software is open-source, so users can customize transaction fees and take advantage of plenty of security options like two-factor authentication, pin codes, QR codes, and more.
This level of customization makes Electrum a great option for advanced users who have experience trading BTC.
Unlike Electrum, Exodus is a platform that’s more tailored to newer crypto traders. Through expansive customer support, an easy-to-use interface, and multi-currency exchanges that cover more than 100 cryptocurrencies, Exodus has a little bit of everything.
The hot wallet is closed-source and comes with a built-in exchange platform. It’s compatible with Trezor hardware for cold storage, and you can easily set up custom Bitcoin transaction fees to ensure the speed and cost-effectiveness of your exchanges.
For experienced crypto traders, Exodus might feel a little like training wheels, but those just getting their feet wet will be hard-pressed to find better software.
Mycelium is a mobile-only hot wallet that pairs with hardware from Trezor, Ledger, and Keepkey for cold storage.
The Mycelium app is open-source and comes with a built-in cryptocurrency exchange.
In addition to BTC, Mycelium supports ETH and ERC-20 tokens. Like Electrum, Mycelium is one of the original digital wallets and comes with similar features like custom transaction fees.
Overall, you can think of Mycelium as a slightly more evolved version of Electrum — it’s only accessible through the app, but with built-in exchange and a bit more flexibility on support for different coins, it might be worth the lack of a desktop wallet.
7. Ledger Nano X
The Ledger Nano X is a cold hardware wallet that supports more than 1,800 different cryptocurrencies.
The latest improvement over the previous Ledger Nano S, the Nano X comes with both USB and Bluetooth connectivity and works with all of your devices, including mobile.
The wallet is compatible with both iOS and Android, and you can navigate more than 100 apps on its clean, easy-to-use interface.
While the hardware itself is used for cold storage, you can easily connect with Ledger Live, a software that allows for enhanced security and full control over your crypto portfolio.
Ledger is one of the most popular and well-known providers of hardware wallets, and the price point of $119 for the Nano X is reasonable.
If you’re looking for a cheaper option, go with the Nano S, which retails for $59 and should suffice for less-experienced traders.
What Is A Bitcoin Wallet?
In short, a cryptocurrency wallet is exactly what it sounds like. Just like a regular wallet that stores cash, debit cards, and credit cards, a crypto wallet is a place to securely hold your digital assets.
In addition, your wallet allows you to navigate the digital ledger, known as the blockchain, as you build up your crypto portfolio.
To fully understand your options, there are a few key terms and differentiators that you should be aware of:
Hardware vs. Software
The first distinction between wallets is simple — some of the wallets we’ll cover are physical devices, while others are programs that store your assets digitally.
Hardware wallets are similar to USB flash drives. These wallets are physical devices that plug into your devices or connect via Bluetooth and securely store your BTC offline.
Software wallets are computer programs that store your BTC digitally. These platforms range from crypto trading spaces to dedicated software exclusively for storage.
It’s important to note that you don’t necessarily need to choose one or the other — most software wallets are compatible with certain hardware, so you can always keep some of your BTC online while storing the rest of it away. Similarly, some hardware options will come with companion software.
Hot vs. Cold
The simplest way to understand the difference between hot and cold wallets is that hot wallets connect to the internet, and cold wallets do not.
Hot wallets are useful for frequent trading. Since these wallets are connected, you can move your crypto assets around freely. On the other hand, the main benefit of cold storage is that your BTC is safe from hackers without an internet connection.
Public and private keys protect both types of wallets. The individual owner of the wallet uses private keys to access their assets, while public keys function in a similar way to a bank account routing number and allow coins being sent to your wallet to arrive.
It might seem on the surface like all cold wallets are hardware and that hot wallets are software, but this isn’t necessarily true. There are plenty of software options that allow for cold, offline storage.
Other Things To Consider
No matter what type of hardware or software you choose, you’ll want to make sure that it’s compatible with your operating system. Whether you use a Mac or run on Linux, you’ll want digital tools that fit best within your OS.
Similarly, it’s important to consider mobile wallets versus desktop options. Most mobile programs will work for iOS and Android, but some might perform better with one or the other.
Is cryptocurrency safe?
The safety of digital currency is often the biggest factor that keeps people away from it, and for good reason. Crypto is decentralized, and in many ways, unregulated, so it doesn’t come with a lot of the security measures associated with stock trading or traditional banking.
There’s no FDIC, so if your assets are lost through hacking or other unfortunate mishaps, you’re likely out of luck. That said, there are ways to mitigate your risk, and investing in a good crypto wallet is a great place to start.
It’s also important to fully understand the nature of crypto before putting money into it, so be sure to do your research and know what you’re getting into.
What is the best cryptocurrency wallet?
It depends on each individual. Some wallets are better suited for those who have been dealing in crypto for a while, and others will be a better fit for newcomers.
In general, the best crypto wallet is the one that will keep your digital assets secure and provides the flexibility that you need to trade.
Brands like Trezor and Ledger are well-known for secure cold storage, while platforms like Mycelium and Electrum have been providing BTC software for more than a decade.
Is a Bitcoin wallet app safe?
It totally depends on the wallet, and even the best ones aren’t entirely foolproof.
The BTC wallets covered here are among the most secure options out there, but as we mentioned, crypto trading in general always comes with a certain level of risk.
If you’re concerned about safety, your best bet is to go with a cold Bitcoin wallet. These wallets, which are not connected to the internet, aren’t susceptible to hacking, so you can get a bit more peace of mind in keeping your BTC safe.
Otherwise, take a close look at the security features associated with any given wallet. Protections against malware, multi-signature authentication, and password protection are all important aspects of protecting your digital wallet.
How do I cash out a Bitcoin wallet?
If you’re looking to turn your BTC into USD or other fiat currencies, the process will vary depending on your exchange. Many crypto platforms only deal in crypto to crypto trading, so you’ll need to find one that pays out cash.
Once you’ve moved your BTC from the wallet to the platform, you can link a bank account and transfer the funds. The length of this process will vary depending on the platform, so be sure to consider that ahead of time.
Which Bitcoin Wallet is Best for You?
If there’s one thing to take away, it’s this — as you choose how and where to store Bitcoin, your first thought should always be around security.
If you store Bitcoin somewhere that isn’t going to keep it safe, everything else is a moot point.
The good news is that there are plenty of secure options that come with some impressive additional features.
Whether you’re looking for a built-in exchange to buy Bitcoin or simple, secure, cold storage, you should be in a good position to find the digital wallet to fit your needs.
As always, take the time to do your own research and weigh the pros and cons of each option. User reviews are always helpful, and if you’re new to crypto, don’t be afraid to ask for help from experienced traders.
Now that you know the best Bitcoin wallet options, you should be ready to take on the crypto world. Here’s to making it happen.