With the increasing awareness and interest of millions of people on digital currencies such as Bitcoin, the need for more convenient, easy-to-use, and highly secure wallets also arises. The rapid surge of Bitcoin prices also means that the owners will need to protect their funds more than ever. During the end of 2016, the price of a single Bitcoin was just over a thousand dollars. But at the beginning of December 2017, the price soared to more than $20,000 across a number of exchanges worldwide.
While it is estimated that only 1 to 2 percent of the global population owns Bitcoin today, beginners still find a hard time choosing the best wallet for them. Exercising due diligence is required not only when investing in Bitcoin but also when choosing the right wallet to store your funds.
Read more about these five tips to choosing the best Bitcoin wallet in 2018 and become one of the early adopters of this innovative, fast, secure, and reliable digital currency.
#1 Know what you are using your Bitcoins for.
Bitcoin wallets are classified into three categories, namely cold wallet, warm wallet, and hot wallet. Cold storages include paper wallets where you can keep your Bitcoins for several years without having to worry too much about the security of your funds. Warm wallets are mainly used for large and less frequent transactions while hot wallets are those that you use for small and frequent transactions. Know more about the purpose of keeping your Bitcoins before choosing the right wallet for you.
#2 Learn more about security and recoverability.
Bitcoin wallets should be treated as real-life wallets in a sense that if you lose them, then there is hardly a way to get them back. Paper wallets, brain wallets, hardware wallets and others, are all tied with a private key or a unique passphrase for each wallet that you can use to recover your accounts. Hosted online wallets and exchanges do not provide you with your private keys but they can help you in solving transaction issues and in recovering your accounts in their platforms.
Not only should you diversify your investments and avoid going all-in on Bitcoin, but you should also use multiple wallets to keep your funds safe and secure at all times. That means that if you lose access to one wallet, you will still have funds in other wallets intact.
#4 Consider multi-currency wallets.
If you want to keep alternative coins other than Bitcoin, using a multi-currency wallet is your best option. There are a lot of choices that you have when choosing hardware wallets, online wallets, desktop wallets, and mobile wallets that offer multiple currencies.
#5 Security is the priority.
There are many reasons that security should be put above anything else. Use multisig wallets that require approval of different parties for every transaction before it is broadcast to the network. Prefer those that offer security PIN codes and two-factor authentication… aka multi-factor authentication.
. Also, keep your paper wallet and recovery codes in a safe hiding place, and as much as possible, use cases and personal vaults that are fire resistant and waterproof.
If you want to know more about the specific wallets and their pros and cons, then you better check out this discussion on Reddit’s best Bitcoin wallet. Make your own research, manage your risks, diversify, and stay safe all the time.