Looking for the best Bitcoin Wallets in 2021? This is the article for you as a safe wallet is essential to keep your cryptocurrency safe.
February 19, 2021 | AtoZ Markets – If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet where you can securely store your coins or tokens. But if you’re just starting out, choosing a wallet can feel complicated and overwhelming.
Before picking a wallet to use or store your money, you should analyze the pros and cons of a platform. Go through this article as the best Bitcoin wallets in 2021 are highlighted to enable you to make the right decision.
We are going to review the five best Bitcoin wallets of 2021. They are:
- Ledger Nano X
- Trezor Model T
- Ledger Nano S
To begin, lets first discuss what a Bitcoin wallet is as well as the types of Bitcoin wallets in 2021.
What is a Bitcoin wallet?
Just like it helps you to stay organized to keep your coins and bills together in a physical billfold or wallet, a Bitcoin wallet helps to keep your Bitcoin information and digital cryptocurrencies safe together in a wallet. A Bitcoin wallet stores all your digital Bitcoin information and quickly validates your transactions while using the currency.
All of this information is kept secret by using a private key or seed which is then used to validate transactions and “sign” for them. This allows your Bitcoin to be used to make all of your purchases and can then be exchanged for another asset. This secret key or seed keeps others from using your Bitcoin or other people interfering with the transaction.
Many people refer to Bitcoin wallets and crypto exchanges interchangeably. The crypto exchanges are often part of the wallet interface and account features. The wallet then becomes a place to keep all of your cryptocurrencies and where you can keep any fiat money for future use. You can’t withdraw to your bank account from a wallet, and you can’t buy Bitcoin directly with a wallet either.
Types of Bitcoin Wallets in 2021
There are several distinct types of bitcoin wallets:
- Paper. This is a written document which details your public bitcoin address as well as the private key which allows you to conduct transactions. Many paper bitcoin wallets use software such as QR codes to allow you to quickly scan in the information when you want to buy/sell bitcoins. The offline function of the wallet makes it extremely resilient against cybercrime, although you would need to take precautions to ensure that the document is held securely.
- Desktop. These wallets are directly installed onto your PC. Because they don’t rely on any third parties to handle the data, they do have a strong security element. They give users complete control over their bitcoins, making them a popular option for people who only wish to invest small amounts of money. However, because they are only accessible on desktop PCs, they do limit the flexibility of bitcoin transactions.
- Mobile. These usually function in the format of dedicated apps that you can download onto your smartphone. This means that you can trade bitcoins wherever you are; however, it should be noted that some apps may not be transferrable between mobile or android and if a cyber hacker gains access to your phone, then your security could be at risk.
- Web. E-wallets are managed and maintained by third-party agencies. Although they can replicate both desktop and mobile variations, you are reliant upon that third party’s security processes. If they are hacked, you would lose everything.
- Hardware. These are generally felt to be the most secure bitcoin wallet. It uses an external piece of hardware (such as a USB stick) to secure the private key of the bitcoin. This means that they are resilient against threats and can be immune to the prospect of computer viruses.
Each has its advantages so we always recommend that you do your own research before you decide which is the best Bitcoin wallets in 2021.
The 5 Best Bitcoin Wallets for 2021
We’ve gathered together some of the best Bitcoin wallets in 2021 so you can keep your coins under wraps and continuing to grow. Cryptocurrencies keep things safe so you don’t need to put your credit card on the line.
1# Ledger Nano X
One of the best Bitcoin wallets you can think of in 2021 is Ledger Nano X. If you have any cryptocurrency in your portfolio, using a Ledger Nano X can keep your crypto safe and secure. Hardware wallets remain some of the most popular in the industry.
Since it’s a hardware wallet, Ledger Nano X supports over 1,500 cryptocurrencies that continue to grow each year as users suggest their favorite cryptos. The user interface allows all the users to add new wallets for different cryptocurrencies and manage their portfolios from the software.
While many other Bitcoin wallets are located online, these hardware wallets are plugged into your computer. They look like a USB drive and connect to your device via USB or Bluetooth so you won’t need a specific Windows computer, Mac or Linux laptop all the time but you’ll be able to connect to your mobile device as well via Bluetooth.
This Ledger program includes a USB Type-C able so you can also connect with this method through a desktop computer. You can use the Bluetooth function to connect to a smartphone or tablet as well.
- Ledger Live is intuitive and has a convenient user interface
- Store up to 100 different apps simultaneously
- Bluetooth connectivity
- Bluetooth isn’t as smooth as it could be
- Can only store a few wallets simultaneously
2# Trezor Model T
The second wallet that specializes in storing Bitcoin and many other cryptocurrencies is Trezor Model T. There are 1,400 cryptocurrencies available through this wallet and is considered to be a bit more secure than the Ledger Nano X due to the lack of Bluetooth incorporated.
Notably, this Bitcoin wallet has a unique feature that allows users the ability to access third-party exchanges like Shapeshift and Changelly.
The Trezor Model T comes with the same USB Type-C cable so you can easily connect to your smartphone or laptop or desktop to access your storage wallet. You’ll be able to utilize the touch screen with the Model T which is a big help to new users. There’s also a MicroSD slot so you can further encrypt the PIN and protect your device from attacks.
- Large list of supported cryptocurrencies
- Open-source with large amounts of community and customer support
- Web-based user interface with the exchanges built-in for easy access
- Unlimited number of wallets available simultaneously
- Small touchscreen is difficult to type on
- Can be confusing for a new user
3# Ledger Nano S
To store your bitcoins safely in 2021, Nano S, the first generation wallet is a great place to get started. Much like the second generation Ledger Nano X, the Nano S supports the same list of cryptos and gives users access to the Ledger Live software.
Unlike later iterations of the Ledger wallet, this one does not include the USB Type-C cable so it may be difficult to connect it to newer age Android or iOS smartphones or tablets.
It doesn’t use Bluetooth and limits the number of wallets you can have simultaneously active on your overall device. The Nano S only supports 18 simultaneous wallets while the second generation stores up to 100. It’s simple to the user with the Ledger Live and as a beginner, the interface is easy to use and keep track of all of your wallets.
- Ledger Live is an easy user interface
- Secure storage at an affordable price
- Open-source for great customer and community support
- Only able to store 18 wallets simultaneously
- No wireless Bluetooth feature
If you want a flexible Bitcoin wallet that allows you to install the software directly onto your PC, giving you full control over your bitcoins, this is it!
Electrum has security features that includes your PIN code, QR code, and passphrase work within the operating system to protect your cryptocurrency wallet. It is quick and easy to install on your computer, making it a favourite with newcomers.
However, it should be noted that, as stand-alone software, you are at risk if something physical happened to your computer. You have the option to split your Bitcoin between several wallets – something which is useful if you have purchased different currencies.
- Higher levels of security than other hot wallets
- Ability to customize seed phrases
- Open source
- Only works with Bitcoin
- No customer support
Exodus is a simple, easy to use a crypto wallet that works great for beginners. The user interface is extremely simple and the exchange is built-in so your trades and purchases happen with ease while still protecting your Bitcoin address.
As well as storing bitcoins, you can also exchange. There are options with the wallet to set custom fees to make sure that your transaction goes through quickly. The wallet uses graphs to showcase how well your Bitcoin is performing, making it a popular option for those who are investing heavily.
- Wide range of cryptocurrencies, including Bitcoin Cash and Dash
- Built-in exchange for easy trading
- Excellent customer support
- Closed source software caused security concerns
Choosing the Best Bitcoin wallets in 2021
Each Bitcoin wallet on our list was evaluated based on security, and customer reviews with security and safety being the biggest consideration. You want to be sure that any wallet you choose is well used and has lots of safety protocols in place to keep your investment safe.
Keep in mind that you also want to choose a wallet that will work with larger exchanges so you can make quick transactions.
A Bitcoin wallet will help you keep your investment safe and secure while your money does the hard work for you. Your wallet can be built for online or offline storage and you can tweak it to make sure it suits your needs!
The key to finding the best Bitcoin wallets in 2021 for your needs is to be sure you understand the interface and exchanges, find one that keeps your investment secure and allows you to work with the cryptocurrency of your choosing. While there are a few wallets that allow you to exchange your cryptocurrencies and work with many different kinds, a few only work with Bitcoin. Decide what works best for you and choose one accordingly!
Think we missed something? Let us know in the comment section below.