We live in an era in which technology progresses in minutes. Changes are in the doorway, and a new world is unfolding before your eyes. What was on the agenda yesterday does not mean it will be there today, and what we considered or even did not dare to consider is now dressed up as present tense.
We are trading virtual money, and in some countries, they use them to pay in shops. It is just like the era when money as the paper came up, and now it is an informational era. But, maybe the future will be a virtual era. So, do you want to be among the first to make history? Do you want to make an enormous amount of money with Bitcoin? If so, continue reading.
Are you curious about Bitcoin and the best crypto wallet options out there? We put these two in the same sentence because they are a couple that should not be separated.
Are you wondering if it is all worth it and whether it will pay off? Does the Bitcoin wallet actually keep your crypto coins safe?
You can think of a cryptocurrency wallet as your bank account, and there are so many already available. Now, you can choose between offline, or “cold” wallets, and online, or “hot” wallets.
You can choose among them according to your preference of features or other criteria that are in accordance with your principles and lifestyle. We choose to write on this topic, as we see a lot of unreliable information out there. So, we want to provide an article with actual objective information.
Ledger Nano X is the best way so far to secure your Bitcoin offline, and it is intended for people who are crazy about security. Ledger has been creating hardware crypto wallets since 2014, and so far, it has sold 1,100,000 devices and has clients from 165 countries. Today, the company is worth around $1.5 billion.
If you are familiar with the Ledger Nano S, you should know this digital wallet is just an upgrade that was made in 2019. Some of the differences between them are the size of the device and the size of the buttons, as they are both bigger. Plus, this device has Bluetooth connectivity and a built-in battery for mobile use via a smartphone.
Using the Ledger Nano X is quite straightforward, as there are only two buttons. You use those buttons to navigate left and right, and when pressed together, you confirm your selection. To add a new Bitcoin, just go to the Manage menu and click the blue Install button.
Ledger has a unique operating system that they made to improve security called BOLOS. This operating system integrates a secure chip for the Ledger wallets line, and this company is the only one on the market that offers such technology.
There are actually two main but simple steps you need to go through in order to set up this device. They include:
When powered up, this hardware will ask you to set up a PIN, where you can choose 4-8 digits.
While the PIN is the key to your device, the recovery phrase is the key to your coins. So, do this step with the utmost attention, as it will be given to you just this once.
Here, the Ledger’s screen will display one word at a time, and overall 24 numbered words, which you should write down on the Recovery Phrase cards you receive in your package. Also in this step, you will need to confirm your recovery phrase.
The third step will be to connect your mobile phone with the device, which is done by Bluetooth. Then, install the Bitcoin app, add a Bitcoin account, and you are ready to go.
Customers’ reviews vary, as some are happy with the option of storing multiple digital assets. However, some are not satisfied with customer support. Others recommend it as the most convenient, easy-to-use, safe, and portable wallet. So, if we sum up the reviews, it is really good if you have just Bitcoin.
The Trezor Model T is one of the most expensive hardware wallets on the market, but it makes up for its price with premium features, universal support, and ease of use.
The Trezor from SatoshiLabs is one of the oldest in the market that was first released in 2014, designed to suit both HODLers and active traders alike. The name Trezor originates from the Czech language and means “safe” or “strongbox”.
Trezor prototyped the Trezor One in 2012, but this product saw the light of day in 2014. Also, the Model T was released in 2019.
The Model T is a bit larger than the Trezor One, and the main differences are the screen size and the color display.
They offer the following packages:
This device comes with a slot for an SD card, which allows you to store and encrypt passwords. The card will replace integration with Google Drive and DropBox, which will enable you to store backups on your own instead of a centralized server.
Another feature is Shamir Backup, with which you can create up to 16 shares you can use to recover your crypto. Through this method, you secure the backup phrase in different locations and split it into shares.
What else is useful for you? The inclusion of in-wallet exchanges, as you can use these to both buy crypto or convert crypto.
Another option with this device is that accounts can be renamed, you can put notes and labels that will be saved with DropBox integration, or you can even design your home screen with your image.
Signing and verifying messages is also possible within the Trezor wallets. You can even export your transaction history if you need it for preparing taxes, auditing data, or for general bookkeeping. You can do that just by clicking in the export option and choosing if you want CSV or PDF format.
You cannot connect to Bluetooth, but this is in order to limit the attack surface.
The setup is almost like in the Ledger, but instead of 4-8, you have 0-9 digits. We strongly encourage you to use the full 9 digits. In terms of forgetting your PIN, after 16 failed attempts, the device deletes its content.
When it comes to the recovery phrase or recovery seed code, you should buy Billfodl, which is a metal recovery option. Do not allow yourself to lose $1,000,000 in Bitcoin in fire or flood.
Apart from these, Trezor offers Passphrase Support, which means you can put in 24+1 recovery phrases. You can also incorporate a 25th seed word, which is known officially as the passphrase. Or, to upgrade your security to a new level, the Model T allows you to set up a multi-signature scenario where your signing is split between devices.
When you get the device, check if there is a hologram seal that verifies its authenticity. If there is no hologram seal, do not use it and contact customer support.
Customers applaud the security, and some even refer to it as CIA equipment. There are also some unsatisfied buyers that found it complicated. However, our conclusion is that there can be problems with credit cards when buying the product, along with delivery misallocations, but it is a good product with customer support beyond expectations.
"Discreet" is the best word to describe the Ledger Nano S. With more than 1.4 million units sold, the device is about the size of a cigarette lighter and has two small buttons and a screen.
We gave the company background in Ledger X. So, let us jump to the product.
Security is the top reason you should buy a Ledger wallet. We are not exaggerating if we say the company exceeds industry standards for security, as none of the custodial wallets have ever been hacked. Ledger installs tamper-resistant Common Criteria (CC) EAL5+ that are certified Secure Element (SE) chips on these Nanodevices, so your private keys stay on the secure chip.
Ledger S, just like Ledger X, uses its own proprietary operating system, BOLOS. Unlike the apps the device obtains, the wallet accounts are unlimited and can be renamed as desired. They also offer software tools to verify the piece of hardware is genuine. This software is called Root of Trust Plus and is available in a variety of colorways, including green, pink, and a transparent model.
First, you need to know this device can be set up without using a computer at all, as all of the Nano S needs can be sourced via USB.
When you have the device, it is simple to set up and use. You must first download Ledger Live to your computer or mobile device. The hardware wallet, just like in the Ledger X, requires a 4 to 8 digit PIN, and then you will get a 24-word recovery phrase. It also has Passphrase support (a.k.a. 25th-word protection). You have three attempts at entering the correct PIN, and after that, the Ledger will go into a timed lockout.
It also has multi-signature support, which is good as some advanced crypto investors use more than one hardware wallet to sign crypto transactions.
Lastly, set up Ledger Live and install apps for your coins. You can install 3-5 of them until it runs out of internal memory.
Most of the customers are satisfied with this product. Some had problems with downloading updates, but 80% of them are satisfied with the fast response and the patience of the customer support.
Unlike the other Bitcoin wallets that made our list, Exodus is a hot storage wallet, and it is connected to the internet. This company was founded in 2015 in Nebraska, and it was approved by the U.S. Securities and Exchange Commission (SEC) with Class A in April 2021.
This brand is developed by JP Richardson and Daniel Castagnoli, and the experience of Richardson is huge. Before he created this company, he had written codes for many cryptocurrencies. Castagnoli, on other hand, has worked as a designer for companies like Apple, BMW, and Nike.
When it comes to trading on Exodus, it has a built-in trading feature provided by the exchange platform Shapeshift that makes transforming one currency for another very quick and easy.
We should also note they are quite transparent in trades. For example, when sending or receiving crypto, the wallet shows you the fees it will charge for the transfer, the value of crypto that will be debited, and the amount of crypto that will be added when you are exchanging between two cryptocurrencies.
If you need customer support, they are one of the best for that feature. They have a chatbox on their website, and without even talking to the hardware wallet support, it gives you suggestions of an answer right after you write the question.
Exodus is a decentralized, or so-called “distributed” exchange. You have the platform, but they do not follow your trading. Instead, it supports peer-to-peer trading.
In addition, they have compound finance, which is similar to a crypto savings account. With this, you can earn a variable interest rate of around 3.74%.
Last but not least, they have the email restore option. When you create an account, you will get an email with a link to your account, and clicking on this link will restore your account.
First, you need to download the wallet from the official website. It will have a security certificate, so check it carefully. Then, you need to install it, and just like the other brands, you choose a password and a 12-word seed phrase that will help you recover your password.
Exodus has the highest rating of the brands mentioned so far on Trustpilot. The overall experience, as they say, is excellent, and customers get exactly what they ordered. Some say it needs to be translated into more languages and have lower fees.
This is the platform for Bitcoin, more like the “default Bitcoin wallet”. But, the downside is that it is a hot wallet, having first been released in 2013 as an Android app and later made available for iOS as well.
Mycelium was created in 2008, and the original purpose was to develop a mesh networking project. But, after Bitcoin appeared in 2009, the company took a deep interest in blockchain technology. What speaks for this company's reliability is the team of tech-savvy people who are behind it, which makes them one of the best in experience.
Also, Mycelium has been recognized, as it was awarded the 2014 “Best Mobile App” by Blockchain.info.
This wallet offers an impressive feature known as Watch Only, with which you can see your current funds without requiring your private keys.
Mycelium also has the Simplified Payment Verification (SPV) technique. With SPV, you can confirm transactions without downloading the entire blockchain.
Plus, the app allows advanced users to create a backup of the wallet, which involves backing up the 12-word seed and then setting a PIN.
In 2016, Mycelium also introduced a feature that helps you buy Bitcoin right on its platform. This means you can add Bitcoin through Cashila and Glidera, which have been integrated into the mobile wallet platform.
When it comes to opening a new account, the profile asks you if you want to restore from a backup or create a new wallet. If you choose the option to create a new wallet, it will create a Hierarchical Deterministic (HD) wallet.
So, download the app, then write down the 12 words, set a PIN, and you are ready to trade Bitcoin.
Some say transactions take a lot of time, but it is a good product. On more relevant review sites, they state it is not for the beginner. But, some customers say differently, and they recommend it because it is easy to use. So, in conclusion, it can be used for beginners or experienced traders.
Privacy Pros is not a crypto wallet, but it is an online store where you can find several crypto wallets, including the Ledger and Trezor hardware wallets we already discussed.
Its mission is to secure wallet privacy, and for that, they specially designed the Billfodl. As they say, they got so obsessed with it that they became experts just to allow you to safely keep your Bitcoin private keys.
Billfodl is the best choice for you if you want to take the backup of your Bitcoin to the next level. It is made of 100% 316 stainless steel, which has an extremely high melting point. Unlike 304 steel, it is extremely resistant to corrosion.
Usually, everything starts with a seed, like a seed idea, then, like a snowball, that idea grows and becomes a reality. This company started with a seed question — how do we store seed phrases in a way that they cannot be destroyed? That is how they invented their Billfodl.
If you still, by an unfortunate accident, find a way to destroy the Billfodl, the product will be refunded at 125%. This proves how much they are convinced of their product.
The price of a Billfodl has recently lowered, so you can get this backup device for 24 words at $99 and with free shipping in the U.S.
When buying Bitcoin, you should know the entire Bitcoin network and all of the transactions are kept by a common data structure called the blockchain. When you receive Bitcoin, for example, 0.1 BTC, you see them in your wallet listed under a Bitcoin address. At the same time, Bitcoins are not stored in the wallet, they are just a simple entry in the public blockchain.
The main classification of Bitcoin wallets is in the following categories — hot storage wallets and cold storage wallets.
Hot wallets are the ones that are connected to the internet, whereas cold wallets are not connected to the internet. You can see a hot wallet as an online vault that can work on different blockchains and gives you the opportunity to exchange crypto of different currencies. They can be:
Desktop wallets are wallets that are installed on a PC or laptop. They are only accessible on the downloaded computer, and if it is hacked or gets a virus, you may lose all of your funds.
This kind of wallet works on a cloud principle and is accessible from any computer where you store your private keys online. The keys are actually controlled by a third party that makes them more of a target for hacking and theft.
This is the most simple to explain, and these kinds of wallets run on an app on your phone.
As you may have guessed, cold storage wallets are more secure, and the only downside is that they do not accept as many cryptocurrencies as hot wallets do.
With a cold wallet, every transaction initiated online is then temporarily transferred to an offline wallet that is kept in a USB, CD, hard drive, or something similar.
A much safer option for you is the hardware wallet that stores a user’s keys on a hardware device like a USB. The transactions are not online, as they are stored in offline storage, which increases security.
The last kind is a paper wallet that refers to a piece of software that is used to securely generate a pair of keys which are then printed. Transferring Bitcoin to your paper wallet is accomplished by the transfer of funds from that software wallet to a public address. This process works as ‘sweeping,’ and can either be done manually or by scanning the QR code that is on the paper wallet.
Consider the following questions:
Buy this item only from their official website and never from other sites such as eBay or similar. We do not guarantee their quality if it is bought from unofficial sites. Therefore, you should only buy from the official site to avoid manipulation of third parties and thieves who can steal all of the coins from your hardware wallet at a later time.
Also, it is important to understand that you should never keep huge amounts of cryptocurrencies in software wallets. Software wallets are not bad, they are just not as reliable as hardware or physical wallet options. With that being said, only store the amount you can afford to lose.
In order to ensure further safety, you can implement a dummy account on the device on which you will store just as much as you can allow yourself to lose.
Only purchase devices through verified sellers or directly from the websites. Never buy a used hardware wallet.
Do not use a wallet that has already been set up. You should choose your own PIN and do the backup yourself. This should not be given by anyone.
Unlike traditional ‘pocket’ wallets, digital wallets are software programs that do not store currency. The fact is that currencies are stored in multiple locations. What exists there are your public and private keys and interface with various blockchains. The function of the wallet is to store your secret private key that belongs to that address.
Hardware wallets have existed since the dawn of cryptocurrency. People needed to store data, so they were creative at first. However, the first digital wallet providers were white paper wallets, and they started the first hardware wallets services. The mass market form showed up with Trezor One in 2014.
To put it simply, blockchain is a system in which transitions are recorded and maintained across several computers which are linked in a peer-to-peer network.
Blockchain technology is used to create a digital ledger system of transactions.
Mainly, the word ledger is associated with a written or computerized record of transactions.
So, we can say that a cryptocurrency public ledger is a record-keeping system. Here, you should know ledgers maintain participants' identities anonymously.
Cold wallets have different prices. For the ones we chose, we put the price in the article. Hot wallets, unlike cold ones, are free, as you just pay a fee to the owner of the exchange or the device for the transaction.
They are definitely worth it if you value security. However, it is not a must to have your own wallet. Exchanges like Kraken, Coinbase wallet, or CEX.IO offer their own wallets, but you do not have complete custody over your money with these.
Cold wallets are expensive, but they are a lot safer. Hot wallets are better for small amounts of coins.
You cannot convert Bitcoins to cash directly. You need first to sell Bitcoins anonymously on a blockchain in order to get the fiat currency you desire.
Most wallet brands offer guides for using their applications, but the process is not very different from an email setup.
What is important to keep in mind is that some wallets do not work on all platforms. So, make sure the wallet you have is supported by the platform you use.
It depends on how long it takes for the wallet to build a transaction block. The standard for Bitcoin asks for six confirmations before a translation is realized. Usually, it takes an hour.
However, some have more confirmations. For example, Ethereum asks for 24 confirmations, but it only takes a few minutes to complete the translation.
HODL means not to surrender to the impulsive nature of humans. It means not to sell impulsively when a cryptocurrency drops dramatically or rises. “HODL” stands for “Hold on for dear life.” You will spot it in various cryptocurrency forums and social media circles.
It is actually a funny story how this term popped up. It originates from a post made in 2013 on a forum shortly after a move by the Chinese government that caused the price of Bitcoin to fall drastically. An intoxicated person shared, “I AM HODLING,” talking about his bad luck in investing and his desire to keep holding onto his assets in the future.
Although some exchanges are safe enough, we recommend crypto wallets in all cases for greater safety. The wallet address is important for you so your digital currency is under your control.
So technically, you do not have to put Bitcoins in cold storage or download a hot wallet program, as many crypto exchanges have their own wallets right at the exchange.
But, it is up to you to decide where you keep your crypto, whether it is within your own wallet or the wallet provided by the exchange like Coinbase or Kraken. Crypto purists will say “hell no!” to the latter.
But, the risk of hacking remains, and we were witnesses when KuCoin (the fifth largest exchange) experienced a hack that cost them $200 million.
If you are thinking of investing in Bitcoin, then you must know that costs and risks are involved. There is not a minimum amount you should purchase. However, you should not invest more than you can allow yourself to lose.
Overall, the price varies. In 2017 it was $13,000, and in 2018, it dropped to $3,500. Then in 2021, it was $43,454.
Yes, you can choose to invest $100 in Bitcoin. In fact, you can buy Bitcoin fractions, which means you are allowed to not go for a whole Bitcoin. The minimum amount is 1 Satoshi, which is 0.00000001 Bitcoins. However, if you decide to buy Satoshi, it is not possible to buy just 1 Satoshi on any exchange.
When it comes to the lowest price, you can buy Bitcoins for even $2 at some websites.
Let us say you invest $5,000 at this concrete moment. That would be about 0.11 of a Bitcoin. If Bitcoin makes $60,000 a coin and you sell it, you will make $2,800 in profits, which is not bad.
But, you would need to buy over 23 Bitcoins as of 2021 in order to make a $1 million profit from it.
MicroStrategy is the public company that can brag about having the most Bitcoins on the balance sheets, followed by Tesla, Galaxy Digital Holdings, Voyager Digital, Square, and Marathon Digital Holdings. They hold 105,085 Bitcoins worth $4.5 billion based on a price on September 21, 2020
We hope you have found this best Bitcoin wallet review enjoyable and that we contributed to a better perspective on the matter. We gathered all of the information that is relevant in order for you to make a good decision before you decide to invest in one.
The Ledger Nano X is best for beginners who plan to go big and have many cryptocurrencies on their Ledger Live app. All things considered, the Trezor Model T is the best hardware wallet for anyone that wants to HODL crypto, plus you get a colorful screen. Then, the Ledger Nano S is the most affordable, certified option. Exodus has great design and rewards for staking, and you can also easily use it from your phone. Plus, it has educational articles. Mycelium is the one that is rewarded and has the most experience in the field.
All and all, you must put your crypto somewhere. Some websites offer to stack them there, but we do not advise you to do this. Buy a hardware wallet, if you can afford one, for the safest crypto wallet. If not, go with the other wallets, and you will still be happy. Do not forget to make a dummy account and store what you can afford to lose there. Good luck!
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