- A good bitcoin wallet must be secure, private and feature-rich.
- The choice of wallet will depend on whether you want to put your money on your PC, phone or hardware
- Wallets like Trezor offer security, while Exodus allows you to store multiple currencies.
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Bitcoin wallets, also known as wallets or digital wallets, are applications that store the private and public keys to addresses.
The owner of the said address can access the registered cryptocurrency balances through the wallet and use them in the way that best suits him.
Since wallets are one of the most commonly used applications in the cryptocurrency ecosystem, there are a wide variety of types, categorized by security level, ease of use and interoperability.
1 Do Bitcoin wallets need to be categorized as "good"?
Choosing the digital currency package you will use for the first time can be a daunting task, especially if you have little or no knowledge of how cryptocurrency assets work.
However, before you start looking for the perfect wallet for you, it is important that you consider 10 essential aspects.
1. How secure is your bitcoin wallet?
The security level of your wallet is one of the key features to know if it is convenient for you to use it.
That said, this is a point that should not be taken lightly.
For example, if it is a centralized wallet, it is important to know what security protocol it uses and the company to keep your cryptocurrency balance safe.
If your company does not use a robust enough hosting system, you may be vulnerable to hacking.
On the other hand, it is also important to know whether the platform has dedicated features to strengthen the security of user-side keys.
For example, forcing the use of dual factors to access your wallet balance is a tool that can provide greater protection for your assets.
For unmanaged wallets, such as hardware wallets or desktop applications, seed phrases must be created offline from scratch when generating a wallet.
If for some reason your seeds are exposed to a third party during the process of assembling or creating a wallet, then the security of all your funds will be exposed and the third party will have full access to your funds.
Be careful with this detail
2. How easy is it to use your digital currency package?
If you are new to cryptocurrency, then one of the features your first wallet should have is ease of use.
A user-friendly interface can be useful when sending bitcoins, as not understanding the functionality and not giving enough attention can lead to making mistakes and losing our money forever.
When we choose our wallet, it is important to analyze the design of the application and see if we know how to use it.
Likewise, it is important to know the amount of funds they can use, as some companies only allow partial withdrawals, a feature that must be considered when operating.
Another factor that must be considered is whether there is custody of these services.
For people starting to take their first steps in the cryptocurrency market, it may be easier to have a third party help them manage their bitcoins.
However, if you want more independence and financial freedom, you may need to learn how to use a non-custodial service to protect yourself from scrutiny and have complete control over your money.
3. Is it a multi-signature wallet?
If you are interested in using cryptocurrencies to manage your family or company finances, then you may need a multi-signature wallet.
In short, this option allows users to enter multiple cryptocurrencies in their wallets when approving transactions.
In this way, it is much more complicated for third parties to have access to wallet funds without the prior approval of all owners.
The multiple cryptocurrencies that the wallet will have can be stored in different devices or places to improve their security.
Therefore, this feature is widely used when it comes to protecting cryptocurrency funds from hackers or malicious users.
4. How many features does your bitcoin wallet have?
Another feature that should be considered when looking for a digital currency package is that the platform should have a variety of additional services.
While it is not a mandatory element, users are able to more easily access services such as cryptocurrency exchange, private transactions or the purchase of assets from a bank account.
No need to leave the platform.
5. Are you the only one who manages your wallet's private key?
One of the most important factors in the security of a digital currency package is its private key.
It is the cryptocurrency code that allows the user to sign all cryptocurrency operations that he performs.
That is, it is the element that gives you control over your money.
The private key is generated when the wallet is created, and in some cases the user is the only one who can access it.
These types of wallets give full control of the wallet to its owner and are called unmanaged applications.
The name is because no company or individual, not even the developer of the application, has the right to access the wallet.
You are the only one who has access to your money, which gives you the responsibility to be the one who takes care of your savings, as well as the right to be the only one who decides what happens to your money.
In other words, it turns your wallet into a form of currency storage that is resistant to censorship and theft.
6. Is it Hierarchical Deterministic (HD) wallet?
When you're about to start using the wallet, don't forget to investigate whether it's a layered deterministic wallet, or if it's an acronym for HD wallet.
The name may intimidate novice users, so what you must know is that these words will indicate that your wallet is more secure and private than others.
HD wallets are those that can have a variety of addresses and keys without having to deal with multiple cryptocurrencies or keys.
By creating a recovery phrase or seed, the user will have a master key that allows him to sign a different address each time he makes a transaction.
What is this for? Well, so that you do not expose all your transaction history on the network and it is available to anyone. When you have a wallet, it is generated with both a public and a private key. The public key is the one that allows you to identify that you have signed a series of transactions, so it serves as a record for you and third parties of all the movements you have made of your funds.
As you can see, it is the element that enhances transparency.
However, this can be a major inconvenience if you are looking for a more personal financial option.
If you're from this group, HD wallets allow you to continue to benefit from Bitcoin, and your entire transaction history won't be as easy to track because you can get multiple addresses from a single wallet.
7. Is there customer support for digital currency packages?
If you're taking your first steps in the cryptocurrency market, but you still don't quite understand how to use your wallet, then customer support will be your best ally.
We recommend that you check portals and social networks to see how good the customer service is for the applications you are interested in using, and especially to find out how responsive they are in case of problems.
This is even more important when we are dealing with money, in addition to a market that is as volatile as cryptocurrencies.
When asset prices can fluctuate in a matter of minutes, companies must be content to address any eventuality without delay.
8. Do you have a backup of your wallet?
After all, digital currency packages are applications that allow us to use our money.
Therefore, the key is that these devices have the potential to make backup copies that can be used to access funds in cryptocurrencies even if your computer is damaged or you lose the phone that downloaded the application.
One thing to note is that the copy should be automatically cryptocurrency by the application.
In addition, the recovery process should not be difficult to perform and the fewer the steps, the better.
For example, with the helper word, we can re-download the application on another device and import the wallet using the recovery word.
9. Is it a trustworthy bitcoin wallet?
The motto of the cryptocurrency ecosystem is: "Verify, don't trust".
While this is advice that can get you out of a lot of trouble, the truth is that we always trust things in some way or another.
The strategy is to inform ourselves, test and compare to make sure we trust the good stuff.
That's why, if you want to start using a specific wallet, we recommend that you browse different blogs or Internet forums to find the opinions of experts or users in the field.
At CriptoNoticias we have multiple articles in which we test the most desired cryptocurrency tools for the Spanish-speaking public so that you already have a day to understand how it works before you start using it.
10. What operating system is your wallet compatible with?
In a market as broad as digital currency packages, there are applications that can be adapted to the needs of each user, and this is the case with operating systems.
Not all applications are available for any type of computer or phone, so you must look for wallets that do offer support for your smart device.
Usually, this information can be found on the wallet's website, where you can check if the wallet of your choice is available on your computer without having to fall into a scam or malicious link.
In this sense, we recommend that you always download your wallet from the official portal of the company, because there are hackers on the Internet who upload their malicious applications to the online store.
The 2 most popular bitcoin wallets on the market
If you are currently looking for a secure wallet that suits your needs, then we will provide you with a list of the most popular apps on the market to protect your bitcoins.
From wallets that can be downloaded to your computer, to wallets for cell phones and physical devices, you can choose the application that best suits your needs here.
– Browser and exchange wallets.
Dang Hou Cong
– Mobile or computer wallet
Most prominent feature: Exodus is a computer wallet that accepts multiple cryptocurrencies for storage and can be synchronized with hardware devices for a higher level of security.
– Wallet hardware
– Wallets in nodes