After buying your first bitcoins, you will need to secure them in a cryptocurrency wallet or a Bitcoin wallet. In fact, the second most important step in becoming a user of the Bitcoin cryptocurrency is knowing what wallet to choose. Choosing the right Bitcoin wallet is vital since you are investing funds into the cryptocurrency. For this reason, you should not take lightly this important step. Starting with Bitcoin’s official wallet, there are many options to consider,

We will discuss in this guide some tips to follow when choosing a Bitcoin wallet, in order to help you make an informed decision. However, based on the market and the wallet features, you can always change your choice.

Security is Paramount

The basic Bitcoin client is a wallet too. However, as you have to know some special commands in order to use it, this is a very complicated wallet option. Another problem with these basic wallets is that they are full nodes. This means that in order to work they need to download to your computer a full copy of the blockchain. The downside of this is that it can take a lot of time and space. On the positive side, these wallet types provide you high levels of security, as they are not run by a third party.

You should not overlook the security of your cryptocurrency wallet. It is very important to know that you can trust your Bitcoin wallet’s security. You should always check the whether the website has HTTP or HTTPS in case that you decide to use a web wallet. You should be aware of the fact that only HTTPS websites have a secure protocol. The web wallet should also offer strong and secure logins based on a two two-factor authentication (2FA). You should be able to get your own personal private key. A hardware wallet is even a better choice when it comes to security. Before making a final decision, take into consideration all these factors.

Multisignature (Multisig)

It is also recommended to check if the cryptocurrency wallet has a multisig option in addition to be secure. When securing your bitcoin from attackers and theft, multisignature is a preferred method. Multisig means that the wallet is requiring more than one key in order to authorize a transaction. It is somehow similar to a digital version of a lock box that can be opened only by two different keys.

Owning Your Bitcoin

In order to own your bitcoin in your wallet and have control over them, you need to have access to the private keys. When choosing a Bitcoin wallet, this is a very important aspect. Possessing the private key means that you can always keep control over your bitcoin. You can transfer them anytime in and out of the wallet. This also gives you the possibility to use an outside service in order to backup your wallet.

Address Reuse

It is also important to know whether the cryptocurrency wallet you choose is Hierarchical Deterministic (HD). This is an advantage because it increases user privacy, HD wallets always using new bitcoin addresses. User privacy when using Bitcoin wallets has become over the years an important issue. Deterministic wallets feature an added protection for their users and a well rounded architecture.

Transparency

It is also important to check if the wallet code is open source and if the wallet provider is operating in a transparent way. It would be difficult to know for sure how secure are your bitcoin in case that the wallet provider is not transparent. Open source code can be checked for vulnerabilities and peer reviewed.

Anonymity

Anonymity is another important aspect. This depends on whether the wallet accepts minimal registration information or you have to register in order to use the Bitcoin wallet. The wallet may also require a user verification process. Before making a choice, keep in mind these few aspects.

User Experience

User experience depends on whether the wallet is confusing or easy to use. A good wallet should not require much experience and it should be simple to use. It also depends on the way you plan to use your wallet. Some cryptocurrency wallets are specifically made for mobile devices. Also, you may directly download a full Bitcoin client on your computer in case that you are an advanced user. Other good options may include a hardware wallet device where you can store offline your bitcoin.

Wallet Backups

It is also critical to have a good wallet backup. The best backup options for your cryptocurrency wallet are encrypted. It is also important that you get access to a backup restoration process that is easy to use.

Wallet Reputation

Wallet reputation should not be overlooked since this is among the most important aspects. Check on the internet forums like the Bitcoin Forum or the Bitcoin Reddit in order to see what your peers’ opinion about it is.

Choosing your Bitcoin Wallet platform

There many different types of Bitcoin wallets that provide you various features, different levels of ease of use and better or worse security. When selection the Bitcoin wallet that better fits your needs you have to decide how technical you want to get. As a general rule, more technical wallets come with the advantage of a higher security level. The level of security is usually lower when the wallet is more easy to use.

You can get various types of Bitcoin wallets. Some can operate on your Android phone, some on your iPhone, Windows phone, your browser or on your desktop. Most Bitcoin users prefer to have access to their cryptocurrency wherever they are so a mobile wallet can be a good option for them.

Hardware wallets come as their own device. As they can function offline, they have the advantage of providing the highest levels of security. They are somehow similar to a cheque book because you only use it as and when you need to make a transaction.

Conclusion

Bitcoin.com provides access to the official wallet as well as all of the best Bitcoin wallets. There are options to choose from for your chosen desktop or mobile platforms. The choice depends, ultimately, on what are the features you need most. Also, many people may use various cryptocurrency wallets for different purposes.