Bitcoin Wallets – Complete Guide
This resource explains and compares the different types of bitcoin and crypto wallets
A Bitcoin wallet is used to receive, send, store, and track Bitcoin transactions.
The perfect wallet for you will depend on how you intend to use Bitcoin. Regular bitcoiners use a combination of wallets.
This Complete Guide to Bitcoin Wallets explores each type of wallet, its strengths and weaknesses and the best Bitcoin wallets in 2018.
CHAPTER 1
A Bitcoin wallet is used to receive, spend and store bitcoins.
In technical terms, a Bitcoin wallet is a specific combination of a Bitcoin deposit address (public key) and a password (private key) to spend the coins contained in that address.
Since Bitcoin is digital money, you will need a wallet and Bitcoin client (typically come packaged together).
What is a Bitcoin client?
A client is simply a user-friendly interface that communicates with a network. Outlook and Gmail are examples of email clients.
Bitcoin Core, Electrum and Blockchain are examples of popular Bitcoin clients (wallets).
The term “Bitcoin Wallet” is frequently used to describe a Bitcoin client (an interface). Bitcoin clients make Bitcoin easy to use.
Paper wallets and brain wallets do not come paired with a client by design.
Bitcoin wallets can be imported from one client to another instantly at any time. A client does not control your funds. A client never has access to your sensitive information.
DID YOU KNOW?
Despite being fundamentally different, Bitcoin wallets and Bitcoin exchanges have a few things in common. For example, they both allow you to send and receive Bitcoins.
CEX.IO, Coinbase, and other custodial wallets are not real Bitcoin wallets. Only use a hosted wallet if you trust them more than yourself!
FACT: Users who trusted exchanges and other hosted wallet services in the past have lost over $1 billion in Bitcoin!
CHAPTER 2
All Bitcoin wallets can be categorized as either cold or hot. This simply refers to whether your coins are stored in a secure and offline location (cold) or in a vulnerable environment (hot).
Cold Storage vs. Hot Bitcoin Wallets
Cold storage wallets, also known as offline Bitcoin wallets, store your coins off the grid. This is unquestionably the safest way to store Bitcoin. Large sums of bitcoins should only be stored in a cold wallet.
Hot Bitcoin wallets run on connected and therefore vulnerable devices (PC, laptops, smartphones, and tablets). Some of these methods can be as secure as a cold wallet when managed diligently but we do not recommend it.
Comparing Bitcoin Wallets by Type
Bitcoin wallets are available for every computer, device and most internet browsers. Many wallets are available on every platform and compatible with hardware wallets too.
The most secure Bitcoin wallets are tiny Bitcoin computers commonly known as hardware wallets. like the Trezor or Ledger.
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Hardware | High | Easy | Savings | Yes | High |
| Paper* | High | Hard | Savings | Free | High |
| Desktop* | Medium | Medium | Hybrid | Free | Medium |
| Mobile (app) ** | Medium | Easy | Spending | Free | Low |
| Online (web) ** | Medium | Easy | Hybrid | Free | Low |
| Brain** | High | Hard | Savings | Free | High |
| Hosted** | Low | Easy | Spending | Yes | Low |
*Recommended only for users with advanced knowledge of Bitcoin wallet security; **We do not recommend storing a large sum of money using these methods
As illustrated in the table above, there is no perfect wallet and there is, in fact, a perfect explanation. If a wallet is secure, then it is offline. If a wallet is offline, then it is inconvenient for spending.
Most experienced users will have some sort of cold storage solution (typically a hardware wallet ) and a hot wallet (typically a mobile wallet).
You can think of a hardware wallet as your savings account or safety deposit box and a hot wallet as the wallet in your back pocket or purse.
CHAPTER 3
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Paper | High | Hard | Savings | Free | High |
Only recommended for users with advanced knowledge of Bitcoin wallet security
Bitcoin paper wallets are the true essence of a Bitcoin wallet. Paper wallets can be created entirely offline using open source software and are ideal for advanced users storing a lot of coins.
Paper wallets are different than traditional wallets since they are offline and don’t come packaged with a Bitcoin client.
Advantages of Paper Wallets
Ultimate security (cold/offline storage)
Create offline
Full control over your money (private keys)
Control over your privacy
Ideal for large sums of Bitcoin
Disadvantages of Paper Wallets
Difficult to properly set up and use
Best for advanced/technical users
Not for daily spending
Keyloggers and screen capture malware threat
No user interface (client)
Bitcoin paper wallets are generated using JavaScript and are very secure. There are 2 trusted Bitcoin paper wallet generators listed below.
Paper wallets are only recommended for experienced individuals with an understanding of Bitcoin wallet security.
Best Bitcoin Paper Wallets 2018
| Security | Usability | Anonymity | BIP Encryption | Price | Visits | |
BitAddress.org | High | Hard | High | Yes | Free | Visit |
WalletGenerator.net | High | Hard | High | Yes | Free | VISIT |
BitAddress and Wallet Generator are both open source and trusted paper wallet generators. See our Complete Guide to Paper Wallets for guides, reviews, and tips.
For a more convenient way to store large sums of Bitcoin without compromising on security, check out hardware wallets.
SECURITY TIPS
We strongly recommend creating a paper wallet address offline. To learn how, read our guide.
Generating a paper wallet on a computer infected by keylogging or screen capture malware puts your bitcoins at very high risk of theft.
Never print your paper wallet from a public internet connection or printer.
If you lose your paper wallet (private keys) you will permanently lose access to your wallet and funds.
CHAPTER 4
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Hardware | High | Easy | Savings | Yes | High |
Bitcoin hardware wallets are physical devices designed for offline Bitcoin storage and security.
These devices are the most secure Bitcoin wallets. Hardware wallets completely isolate your coins from a vulnerable (online) environment.
Advantages of Hardware Wallets
Ultimate security (cold/offline storage)
Full control over your money (private keys)
Control over privacy and fees
User-friendly interface
Compatible with other wallets
Disadvantages of Hardware Wallets
Inconvenient for day-to-day spending
Cost money (approximately $100)
Limited supply
Bitcoin hardware wallets store your private keys directly on the physical device. Hardware wallets come with a 24-word seed that can be used to recover your wallet should it get lost or stolen.
In order for someone to steal your Bitcoin from your hardware wallet, they would need to steal the physical device and know your PIN. Alternatively, they would need to steal your seed.
Best Bitcoin Hardware Wallets 2018
| Wallet | Release | Price ($) | Rating | Buy Now | |
|---|---|---|---|---|---|
 | Trezor Model T | 2018 | $175 | 9.7/10 | Buy |
 | Ledger Nano S | 2016 | $105 | 9.3/10 | Buy |
 | Trezor One | 2013 | $99 | 9.2/10 | Buy |
 | KeepKey | 2015 | $129 | 8.9/10 | Buy |
See our Complete Guide to Bitcoin Hardware Wallets for more information
MUST READ
We strongly recommend setting up your wallet in a very private setting.
- Never keep a copy of your PIN with your wallet.
- Ensure the tamper evident seal is intact when receiving your wallet and before sending coins.
- Carefully make several paper copies of your master recovery seed and store them in a safety deposit box ASAP.
- We recommend keeping a copy of your master seed in 2 or more independent locations for increased security.
CHAPTER 5
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Web | Medium | Easy | Hybrid | Free | Low |
We do not recommend storing a large sum of money using these methods
Bitcoin web wallets are accessible through an internet connection and a web browser.
These wallets are free and ultra-simple to setup and use. Online wallets are versatile and can be secure when managed properly.
Hosted online “wallets” like Coinbase and Xapo are not real Bitcoin web wallets since they control your funds.
Advantages of Web Wallets
Full control of your money (private keys)
Simple to use and easy to access
Easy to backup and restore wallet
Track cold storage balances
Free to use
Disadvantages of Online (Web) Wallets
Vulnerable environment (hot wallet)
Limited privacy
Storing large amount not recommended
Keyloggers and screen capture malware threat
Web wallet providers store an encrypted copy of your wallet on their secure servers. This allows them to provide you access to your wallet “on demand” when your password is inputted.
Trusted online wallet providers like GreenAddress will never store your sensitive information; therefore they cannot control or restrict your funds.
Even if the wallet provider were to get compromised, the hacker would need your password to spend your funds.
Best Bitcoin Web Wallets 2018
| Security | Usability | Anonymity | Trading | |
| Blockchain | High | Easy | Low | Yes |
| GreenAddress | High | Easy | Low | Yes |
| Coinbase Vault | High | Easy | Low | Yes |
Blockchain, GreenAddress, and Bitgo are our favorite Bitcoin web wallets. For storing large amounts of money, we strongly recommend a Hardware or paper wallet.
See our Complete Guide to Online Wallets for more info
MUST READ
We strongly recommend creating and accessing a web wallet from a highly-secure computer.
Generating a web wallet on a computer infected by keylogging or screen capture malware put your bitcoins at very high risk of theft.
If you lose your password/PIN and your recovery (master) seed, you will permanently lose access to your wallet and funds.
CHAPTER 6
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Desktop | Medium | Medium | Hybrid | Free | Low |
Only recommended for users with advanced knowledge of Bitcoin wallet security
A desktop wallet (or client) is a computer program that is installed on and runs from a PC or laptop.
Software wallets allow you to send, receive and track your Bitcoin transactions on your computer. Most wallets are compatible with Windows, Mac, and Linux.
Advantages of Desktop Wallets
Full control over your money (private keys)
Control over privacy (full node)
Free and open source
Secure and reliable
Can be used for hot and cold storage
Disadvantages of Desktop Wallets
Vulnerable environment
Complex to manage security
Inconvenient for day-to-day
Heavy (full node)
Limited privacy (SPV)
Desktop wallets store your private keys and other sensitive information directly on your computer’s hard drive.
This gives you complete control over your coins and privacy but also the burden of securing your computer and private keys.
These wallets are typically free and can be secure when managed carefully. The original and first ever Bitcoin wallet is Bitcoin Core client.
Best Bitcoin Desktop Wallets 2018
| Security | Usability | Anonymity | Compatible Coins | |
| Electrum | High | Medium | High | Bitcoin |
| Exodus | High | Easy | High | Bitcoin + ERC20 |
| Bitcoin Core | High | Hard | High | Bitcoin |
| CoPay | High | Medium | High | Bitcoin |
| Armory | High | Medium | High | Bitcoin |
Wallet security and maintenance (backups) makes desktop wallets rather complex and tedious to use even for tech-savvy individuals.
See our Complete Guide to Desktop Wallets for more information.
MUST READ
If you are storing a large sum of money, we do not recommend using a desktop (software) wallet.
Hardware wallets are an excellent alternative to desktop wallets for their security and convenience but cost about $100.
If not secured properly, desktop wallets can be highly vulnerable to theft and hacks.
Always research a wallet before using it to make sure it is safe and reliable. Some unknown wallet providers might steal your money!
CHAPTER 7
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Mobile | Medium | Easy | Spending | Free | Low |
We do not recommend storing a large sum of money using these methods.
Mobile wallets come in the form of apps and are ultra-easy to setup and use. Mobile wallets are ideal for daily expenditures and are recommended over other hot wallets.
Bitcoin wallets for Android and Bitcoin wallets for iOS are the most popular mobile wallets.
Advantages of Mobile Wallets
Full control over your money (private keys)
Ultra-convenient; day-to-day use
Easy to backup and restore wallet
Track cold storage balances
Free to use
Disadvantages of Mobile Wallets
Vulnerable environment (hot wallet)
Limited privacy
Cannot store a large amount
Targeted platform
Mobile wallets store your private keys and other sensitive information directly on your smartphone.
This gives you full control over your coins but also the burden of protecting your mobile device and private keys.
These wallets are typically free and can be secure when managed carefully. Some apps may charge a very small fee when sending a payment in order to support its development.
Best Bitcoin Wallet for iOS 2018
The best mobile wallets for iOS are MyCelium, Jaxx, Blockchain, Airbitz, and Bread.
| Security | Usability | Anonymity | Compatible Coins | |
| MyCelium | High | Easy | Medium | Bitcoin |
| Jaxx | High | Easy | Medium | Bitcoin + |
| Blockchain | High | Easy | Medium | Bitcoin + |
| Airbitz | Medium | Easy | Medium | Bitcoin |
| Bread | High | Medium | Medium | Bitcoin + |
Best Bitcoin Wallets for Android 2018
MyCelium, Copay, Blockchain, GreenAddress, and Bread are the best Android wallets.
| Security | Usability | Anonymity | Compatible Coins | |
| MyCelium | High | Easy | Medium | Bitcoin |
| CoPay | High | Easy | Medium | Bitcoin |
| GreenAddress | High | Easy | Medium | Bitcoin |
| Bread | High | Easy | Medium | Bitcoin + |
DID YOU KNOW?
Coinbase and other crypto exchanges with mobile apps are not Bitcoin wallets. Exchanges offer what are called hosted or custodial wallets and should only be used to trade Bitcoin!
Exchanges have full control of your funds. You must request authorization to spend your funds. If an exchange gets hacked or becomes inaccessible, so do your coins. Users have lost over $1 billion from hacked exchanges!
Do not store/save your Bitcoin on an exchange or centralized service that provides wallet-like services. If you don’t have full control of your coins, you’re not using a real Bitcoin wallet.
CHAPTER 8
| Wallet Type | Security | Usability | Best for | Cost | Privacy |
|---|---|---|---|---|---|
| Hosted | Low | Easy | Trading | Yes | Low |
Hosted wallets like Coinbaseare by definition, not real Bitcoin wallets since you do not control your funds – one of Bitcoin’s pillars
If managing and securing a wallet yourself is something you rather not do, hosted wallets are ideal. By using a hosted wallet, you give up control of your funds in exchange for convenience like with a traditional bank.
Advantages of Hosted Bitcoin Wallets
For all skill levels
Convenient (online, mobile app)
No private key management
Buy and store Bitcoin in one place
Free to use the wallet
Disadvantages of Hosted Bitcoin Wallets
No privacy
Cannot store a large amount
Targeted platforms (phishing)
Fees to spend Bitcoin
Planning to store a lot of coins? Do not use a mobile wallet! A hardware or paper wallet is your best bet.
Best Hosted Bitcoin Wallet 2018