Choosing a software wallet for cryptocurrency Bitcoin
- Created: Thursday, 16 April 2020 12:02
Everyone who has ever dealt with cryptocurrencies has always wondered about keeping their crypto savings. For these purposes, today there is a large version of various solutions that we discussed in detail back in 2018. Today, we will dwell on individual software wallets for Bitcoin, especially since now there are more than 50 different items, and choosing the right one for you is not an easy task.
At first glance, it seems that there can only be one requirement for cryptocurrency wallets - security. But this is not entirely true, because The wallet can be used not only as a storehouse for your private key, but also as a service for interacting with the blockchain, and there are already many nuances in the operation of a particular program due to which they cannot be used for purposes not limited only to cryptocurrency storage. Equally important is such a factor as ease of use, mobility.
Well-known cryptocurrency wallets:
Recommended Bitcoin wallets for use:
- Bitcoin Core
- Bitcoin Wallet
- Blue Wallet
Unwanted Bitcoin wallets to use
Cryptocurrency wallets to avoid
The rating of cryptocurrencies is compiled by veriphi.io, which specializes in the secure storage of cryptocurrencies.
To get acquainted, save the image to your computer or follow this link
Our recommendations for choosing a Bitcoin crypto wallet:
- Bitcoin Core - use if you need maximum reliability and functionality. The disadvantage is the long blockchain synchronization (takes more than a month) and support for only one Bitcoin cryptocurrency.
- Bitcoin Wallet is the official mobile Bitcoin wallet for Android OS phones.
- Electrum is a lightweight wallet that does not require downloading the entire blockchain. High reliability and functionality. Available for Windows, MacOS, Linux and Android.
- Blockchain.com - the most popular and reliable WEB wallet
- BRD is a wallet for those who want to store Bitcoin and a large number of altcoins on their mobile phone.
- BitGo - Web application with support for a large number of altcoins.
Description of the Bitcoin wallet table:
Using the table above, you can choose the most suitable solution for yourself. But for this you need to understand all the parameters indicated by which the rating of crypto wallets was carried out. If you are not familiar with any concepts, then check out the brief description of the table below:
Access to the wallet source code always increases the confidence of the crypto community in such products, as enthusiast programmers can always examine the wallet code for hidden functions.
If your wallet does not connect directly through the full node, then this is an API wallet that needs a backend server to connect to the network. This is a must for all web wallets. This is usually a centralized server infrastructure that manages the interactions between its users and the bitcoin network.
Open access backend
As well as the open source code of the wallet itself, the open source code of the server increases user confidence in such a product.
Connection to a full node
A full node gives maximum control of security and anonymity over your cryptocurrency. All other options use the server of the company that created the wallet, which can affect security and anonymity, as well as be limited in functionality.
Connect to backend server
API - application programming interface, describes a protocol for transferring information between a server and a client. As it is a private company server, to which a limited number of company employees have access.
SPV (Simple Payment Verification) as a server acts as a random node, which provides not only the requested information, but also all transactions from the requested block. Therefore, this method is considered more anonymous than working through the API.
Custodial / non-custodial
Non-custodial - the user himself is fully responsible for the safety of his funds. Custodial - the company is responsible for the safety of cryptocurrency. In wallets, you can sometimes choose the cryptocurrency storage method, but the custodian method is usually paid.
There are several ways to back up. The easiest way is to store a private key, a little more complicated is the so-called LED phrase, i.e. sequence of 12 or 24 words. The classic way used in Bitcoin Core is to store private keys in a special file.
For some wallets, creating a backup copy (seed phrases) is not a required parameter, which is bad for security.
Allows you to distribute access to the wallet for different people.
The service provider acts as a co-sponsor
When this option is enabled, a second party signature is required to confirm the transaction. It protects against theft of cryptocurrency, but it requires a second person whom you trust.
This service is abbreviated as 2FA - an additional way to protect your wallet with a 6-digit pin code, which is randomly generated based on time and a private key that only you and the server know.
Using additional methods for creating a private key (password) to obtain the most unpredictable result
A PIN or biometric identifier is commonly used for mobile phones and a password for computers.
Additional password for backups
Hardware Wallet Integration
Support for working with hardware wallets. such as Ledger, Trezor and others. Increases storage safety.
This feature increases anonymity by mixing transactions between different users.
Using the TOR network greatly increases anonymity.
Choice of transaction fee
A useful function that allows you to independently change the size of the transaction commission, which will allow you to conduct transactions on the network faster or vice versa if the transaction speed does not matter.
Change RBF commission amount
This function allows you to increase the commission for a transaction already sent for if the commission was too low and the transaction was stuck in the mempool for a long time.
Allows you to manage one wallet to multiple users.
UTXO is the management of unspent transaction outputs or coin management.
If the wallet requires your email, then at least it can harm your anonymity on the network. It is better to avoid such wallets or use mail without personal data.
Creating a transaction using a low-level interface (command line)
The ability to create messages on the network signed with your own private key
Bitcoin Test Network Support
They can work in the test network of Bitcoin, where new functions are tested.
This feature allows you to reduce the commission when creating multiple transactions at once.
PSBT (partially signed transactions)
This feature allows wallets to exchange transaction information.
Ability to exchange BTC for other cryptocurrencies
Cryptocurrency exchange functionality built into the wallet
Ability to import private keys
An important function that allows you to transfer cryptocurrency from one wallet to another by entering a private key.
Multi Coin Support
Support other than Bitcoin for other cryptocurrencies, which negatively affects security.