Bitcoin wallet is a software program that can be:
- Installed on your computer;
- Saved on a flash drive or a separate device (hardware wallet);
- Mobile phone application;
- Website on the Internet.
This program is your connection to the bitcoin blockchain, through which you can create your addresses, as well as accept and make bitcoin payments.
The wallet is not what bitcoins sit in. The wallet is simply the tool you use to manage your bitcoins in the global Bitcoin payment system and it helps you trade efficiently at the margin trading exchanges. The wallet manages multiple bitcoin addresses under one hat. It is important to understand that what the wallet contains are the private and public keys of the addresses managed by it.
In addition to a software program, these keys can be held in another type of wallet: a wallet, a “brain” wallet (not recommended for everyone), or a hardware wallet. Because your private keys do not have access to the Internet, they are very suitable for protecting the bitcoins that you hold as a long-term investment. However, you still need a software wallet to make a blockchain payment, and a properly installed and secured wallet provides more than enough security and convenience. We recommend that you do not overdo your attempts to secure yourself because many people are so secure that they exclude themselves from access to their bitcoins….
Different types of Bitcoin wallets
- For daily online use
This wallet includes the bitcoins that you will use for online shopping, online betting, dark markets, etc. You usually use these services through a browser on your computer or from a tablet / phone.
- Wallets for larger but quickly available amounts
The perfect, unfortunately, paid, solution here are the hardware wallets. They provide the best balance between ease of use, security, and convenience.
To be comprehensive, we must say that for larger amounts desktop wallets can also be used such as BitcoinQT, Armory, and the like, but they suffer from the disadvantage that they are available only from one machine, that you need to keep a backup of individual machines, as well as other specifics, which is why we do not recommend you to use them unless you know exactly why!
- Wallets for bitcoin investment
And where to keep the bitcoins in which we have invested with the belief that one day we will be millionaires? The best solution here is a paper wallet: you print your bitcoin address and the adjacent key on paper (maybe in several copies) and hide them in a safe place. The problem with the paper wallet is that if you want to use some of the bitcoins in it, you will have to take them out of the place where you hid them, import them into another wallet and then send the coins and make a new paper wallet. The better solution here is to get a hardware wallet like Ledger Wallet, hiding well (in several places if possible) the Recovery Card that goes with it. Then you keep the wallet with you (it’s just a USB) and you’re sure that even if someone steals it, the coins from your wallet are in a safe place (especially if you use protection over the phone).
- Business wallets
If you want to enter bitcoin for payment on your site, you need to connect your payment system to the blockchain of currencies you want to accept. Unlike traditional payments, where you have to ask the banks or PayPal to accept you, send you a sum of documents, etc., with bitcoin you only need to install a suitable wallet and implement its API. For simpler projects, the API on blockchain.info or bitpay.com is very easy and sufficient.
However, using the cloud API is not desirable for more solid projects where you have to keep more coins in the so-called “Hot wallet”, because no matter how good you are a programmer, there will always be a better hacker than you.
It is safest to install your full Bitcoin-QT wallet, and we recommend that you install the wallet on a separate server from the webserver that hosts your site.
Which are some of the best Bitcoin wallets?
Jaxx Liberty has many advantages, but here are the most important:
- Works on all devices: Windows, Mac OS, Linux, Android, iPhone, Chrome App
- Supports over 50 currencies, the most popular of which are: Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Dash, Litecoin (LTC), ZCash (ZEC), Augur (REP)
- The simplest and at the same time powerful functionality possible
- Only you have access to your coins, unlike other “wallets” such as Coinbase, which are nothing more than banks in disguise in the crypto world
- The backup for all cryptocurrencies in the wallet consists of 12 words and their one-time preservation in a safe place guarantees you access to balances and past transactions at any time from anywhere in the world. If you think this functionality is for professionals only, maybe bitcoin isn’t for you yet
- Open-source software, created by the famous Canadian company Decentral, led by Anthony Di Lorio, to whom we owe the infinitely useful wallet at the dawn of bitcoin — KryptoKit.
- Portfolio module, allowing you to track changes in the value of your cryptocurrencies in real-time.
- Newsfeed with the latest and most popular news from the crypto world
- Integration of multiple blockchain explorers, making tracking balances and transactions easy and convenient
Blockstream Green is a Bitcoin wallet — it provides the ability to receive, store, and send Bitcoin. You can use Blockstream Green to accept incoming payments, keep your coins in a safe place for long periods of time, or make payments and send Bitcoin to others. The wallet allows convenient, instant access to your funds from different platforms through mutually compatible applications. The application offers a variety of advanced features, such as allowing users to set their own outbound transaction fees, watch-only mode, and a unique Multi-sig security model.
What can’t Blockstream Green be used for?
It is equally important to understand what Blockstream Green is not. The wallet is not a platform for buying and selling Bitcoin. If you want to buy or sell, you will need to use another option, such as a purchase from crypto.bg or bank.crypto.bg.
Once you have purchased a certain amount of Bitcoin, you can send it to your wallet. Blockstream Green only supports Bitcoin (which is denoted by a 3-letter ticker “BTC”). The application does not support national currencies such as USD or EUR. No other cryptocurrencies, such as Ether or Dogecoin, are supported. Attempting to send something other than Bitcoin to an address generated by Blockstream Green could result in the permanent loss of the coins in question. It is entirely up to you how you will use and secure your wallet. Currently, the wallet is only available for Android and iOS.
What is special about this wallet?
Those who are already familiar with the way Bitcoin wallets typically work are probably aware of some of the conveniences, security, and privacy features that Bitcoin provides. Thanks to a unique Multi-sig format, Green is able to offer the usual anonymity and freedom of typical Bitcoin wallets, but with added security. The wallet uses a format that requires signatures generated by two different keys. One of the keys is controlled by you and the other by the wallet itself. It will sign transactions, provided that confirmation is given via 2FA. This is a one-time password that is ideally provided to you on a separate device via Google Authenticator, email, SMS or call. This means that even if someone acquires your mnemonic phrase, they will not be able to steal your bitcoins when you have activated 2FA, unless they also compromise your 2FA method. Also, if for some reason the service is unable to sign your transaction, you can move your coins yourself after a certain period of time. This gives you the best of both worlds — full financial sovereignty and full control over private keys, along with additional server protection.
Coinomi is a cryptocurrency software wallet designed to store multiple cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others. The high level of protection, accompanied by an intuitive user interface, makes Coinomi one of the best free options on the market. The wallet also provides integration of shapeshift.io and changelly.com, thanks to which you can easily switch from one currency to another. Coinomi has been on the market since 2014, but if it has not been in your field of vision so far, you should definitely pay attention to it.
What makes Coinomi so special?
The list is long, but here are the main features that set it apart from other wallets:
- Supports multiple cryptocurrencies — Coinomi supports over 500 assets by constantly integrating new altcoins and tokens.
- Excellent protection — Your private keys never leave your device. Wallet encryption ensures that your funds remain safe and under your control.
- Good level of anonymity and confidentiality — KYC is not required to access portfolio functions. No IP association, no personal information requirements, no transaction tracking.
- Easy and fast trading at any time — Diversify into major cryptocurrencies directly from your wallet using Shapeshift and Changelly integration.
- Segwit integration — Enjoy faster confirmations and lower fees for current Bitcoin price, Litecoin, and many other cryptocurrencies. Switching between Bech32, P2SH, and Legacy addresses are extremely easy and convenient for users.
- Optimized and user-friendly — Advanced technology allows you to use your altcoins to pay directly to bitcoin addresses and vice versa. No additional complications.
- Dynamic fees — Transaction fees are calculated dynamically according to the workload of the respective blockchain. Alternatively, you can use fees set by you.
- Multilingual — English, Chinese, Spanish, French, German, Russian, and many other languages are supported.
- Works on all platforms — available for Windows, Mac OS, Linux, Android, and iOS.