How to Choose a Bitcoin Wallet in 2021
Your choice of a bitcoin wallet is one of the most important decisions you’ll have to make once you start trading bitcoin.
Your choice of a bitcoin wallet is one of the most important decisions you'll have to make once you start trading bitcoin. A bitcoin wallet is a device or service that stores the private and public keys that give you access to your funds This is an extra layer of security for your funds, as no one can have access to your account or make transactions from it without the private key which should be exclusive to you.
There are several crypto exchanges and wallets available today such as the bitcoin digital app with advanced trading algorithms. However, there are certain features you must look out for when choosing, some of which this article explains.
1. Know Your Specific Needs from the Wallet
Bitcoin wallets are created by different companies, which means all wallets can't be the same and will have their uniqueness. To make the right decision, start by figuring out what you need from the wallet. Note the key features you'd prefer and opt for the wallet that can provide you that. Quick examples include user experience, easy to understand user interface, beginner-friendly, low transaction or trading cost, and more.
However, while you look out for these key features, ensure you look out for general features that an ideal wallet should have. This includes tight security measures, transparency, diversification of the portfolio, good customer service, and more.
2. Do Your Research
Don't just hop on the internet or your app store and choose the first wallet app that pops up on your screen. Take your time to do some research about the available wallets and what would work best for you. Use search engines and social media to your advantage. Check online communities and forums where these wallets have been mentioned. This will give you an insight into how much authority the wallet has and what previous and current users say about them. It will also help you avoid getting scammed by using a fraudulent app or accidentally installing malware in the process.
3. Consider Security Measures
Security cannot be overemphasized, especially where sensitive data is involved. A 2017 paper on the evolution of bitcoin and security risk in bitcoin wallets shows the security risk and feasible attacks on the configurations of bitcoin management and how bitcoin wallets might be vulnerable.
Before you commit your funds to any wallet, find out what their security measures are. Ensure the wallet has tight security options to guarantee the safety of your funds. Some of the things to look out for include two-factor authentication and the ability to enable a strong password. Also, find out what the options are if at any point you lose your password or your private key.
With proper security measures in place, you will be more confident to store as many bitcoins as you'd want in the wallet.
There are different kinds of wallets today, from Desktop, Mobile, Web/Online, and Hardware. Due to the advancement of technology, more people use online wallets today, as it allows a better ease of access and use. However, while you choose, ensure you make an informed decision.