There is a lot of confusion about what Bitcoin is. Most people understand that Bitcoin is a digital currency, but that’s as far as their understanding goes. The truth is that Bitcoin and the paper cash that you carry around in your wallet have a lot in common. Bitcoin can be bought and sold or traded just like cash. Bitcoin can be stored in a wallet, albeit digital.
We want to take some time and really delve deep into what a Bitcoin wallet is. Also, we will talk about the options you have for storing Bitcoin in different Bitcoin wallets. If the topic feels confusing at first, don’t worry. It is confusing for everyone when they are first learning about cryptocurrencies. However, once you have gone through this review, you will have the ability to download a Bitcoin wallet, and you know precisely how to use it.
First things first, you have to know how much Bitcoin is currently valued at before deciding if you’re going to purchase Bitcoin or store the cryptocurrency.
Our Pick for the Best Crypto Wallet for 2020 Is ETORO
We like this crypto wallet because:
- It supports more than 12 currencies
- It allows you to use PayPal
- It has a $200 minimum deposit
- It allows for Bitcoin exchange and trading
What Is a Bitcoin Wallet or a Crypto Wallet?
Bitcoin is a digital currency, but you have to be able to keep it somewhere. You have a wallet in your pocket that you use to hold onto their cash. A Bitcoin wallet is a tool that allows you to store your Bitcoin safely after you purchase it. Here’s what you need to know about your crypto wallet:
- You use software to keep track of your Bitcoins and other currencies. This is your crypto wallet.
- You use your crypto wallet to withdraw, suspend, receive, trade, and to send cryptocurrencies.
- Cryptocurrencies use blockchain technology to register transactions.
- Your crypto wallet cannot be used to send BTC to other crypto addresses, withdraw funds from a bank, or share information with third parties.
Most Bitcoin wallets use private keys for security. These keys , or better put, secret codes link you to a specific Bitcoin balance. Without the keys, it is impossible for you to access your Bitcoin. It can be difficult to remember a long alphanumeric key. So your Bitcoin wallet software will do this for you.
When you put Bitcoin in your wallet, the keys are also stored there. This is why the wallet can show you the amount of Bitcoin that is inside of it, and this is how you can use the Bitcoin for whatever you desire.
Your Bitcoin wallet is digital, so it exists on your mobile device or computer. You can also store your Bitcoin in specialized devices that are disconnected from the Internet.
A Bitcoin wallet can exist on third-party exchanges that allow you to temporarily store Bitcoin after you buy it and while you are deciding how you’re going to use it for trading. However, the safest thing you can do is store your cryptocurrency in a wallet that you completely control and on a device that is not connected to the Internet.
Creating a Bitcoin Wallet with IQ Option
IQ Option uses the most advanced safety protocols available to keep your funds safe. It uses SSL encryption, meaning that any communication that happens on its server meets the industry encryption standards AES 256. IQ Option is also monitored and regulated by Cyprus Securities and Exchange Commission.
When you create an account with IQ Option, the platform automatically makes a wallet for you and gives it the name “My Wallet.” As you go through the process of buying Bitcoin, it’s stored in your wallet, but you can transfer the funds to another wallet that you own.
You can buy Bitcoin on the platform using a registered account and then inputting information from your bank card.
Choose the Amount
The first thing that you need to do is choose the Cryptocurrency you want to buy and the amount you are going to spend on the purchase. Then the converter will show you how much Bitcoin currency you will be purchasing.
Step Two: Register Your Account
You can create an account using your email address and creating a password, or you can link it to your Facebook or Google credentials. Once you have signed up, you can start purchasing using a licensed European broker. You will also have access to the secure IQ Option wallet. This allows you to sell, buy, and make deposits and withdrawals all from the same wallet.
Another plus is that you will have the option of trading crypto and CFDs and use other trading vehicles on one platform using your mobile device, your computer, or a standalone app.
Step Three: Purchase the Bitcoin
The next step is entering your card details, making the payment, and getting the Bitcoin.
If you have already created an account, simply go to “My Wallet” and select Bitcoin. From there you select how much Bitcoin you’re going to spend, review your balance, and complete the purchase.
We strongly recommend that you use two-step authentication to add greater security to your login.
Creating a Wallet Using Binance
Binance is by far the most popular cryptocurrency exchange on the planet. If you are thinking about dabbling in cryptocurrencies, especially Bitcoin, sooner or later Binance will come across your radar. Let’s quickly review how you can create your Binance account and wallet.
Step One: Create an Account in Binance
When you visit Binance.com, you will be able to complete the registration process by supplying your email and password.
You will receive an email with a link that you can click on.
The link will direct you to the Binance site. There, you will be asked to input a little bit more information. Next, you can send Bitcoin to your exchange wallet.
Binance does not let you buy Bitcoin with fiat money.
Step Two: Go to “Funds” > “Balances”
Here, you will look at each one of your Binance wallets at a glance. Anytime you purchase cryptocurrency on this platform, it will be delivered to the predetermined wallet.
You can see your wallets and balances on the top of the screen. When you click “Deposit,” you will be given an address that you can send your Bitcoin to. This will fund your wallets for all of your trading needs.
Setting up Your Wallet Using Exodus
Like the other digital cryptocurrency wallets we have discussed, Exodus is software that is on your computer. You simply need to download it, go through the setup process, and start storing your Bitcoin in this wallet. Here are the steps you follow to accomplish this.
Step One: Download the Software
Visit Exodus.io. There, you will be able to download the wallet. As of the time of this writing, Exodus is not available as a mobile app. After you download the application, go through the install process as you would with any other desktop application.
Step Two: Open Exodus to Use the Bitcoin Wallet
Exodus is versatile in that it can hold a number of cryptocurrencies. If you want to use it for Bitcoin, simply select the “wallet” tab located on the right. Then you will be able to click the Bitcoin wallet. Now, you’re have what you need to take advantage of the Bitcoin Exodus wallet.
Storing Cryptocurrency Using the Infinito Wallet
Infinito Wallet can be used to store a number of cryptocurrencies, including Bitcoin. This platform is an easy to use storage shop for your entire cryptocurrency portfolio. The platform is well-designed. Here are the steps you need to follow in order to use it.
Step One: Download the Infinito Wallet
Visit Infinitowallet.io to download the software. Once the file has been downloaded, you can install it as you would all other applications. Once things are set up, you can open your crypto wallet.
Step Two: Prepare your Bitcoin Wallet in Infinito
As soon as you open Infinito, you have access to your Bitcoin wallet. It will have the address that you can use to send any amount of Bitcoin you want.
Blockchain.Info, Now Blockchain.com
Blockchain.com is a convenient location on the web to store your Bitcoin. You are able to create an account quickly and securely store your Bitcoin and
Create Your Wallet in Blockchain.com
You create your wallet by inputting your email, selecting a password, and then clicking on the link that blockchain.com will send you.
Locate Your Bitcoin Wallet
When you click on the wallet located on the top of page, this will direct you to your Bitcoin wallet. From there, you can manage all of your Bitcoin business.
Finding the Best Bitcoin Wallet for Your Country
Best Bitcoin Wallet for the United Kingdom
If you live in the United Kingdom, we are going to recommend a Bitcoin wallet that we haven’t talked about yet and that is CoinBase.
You have probably heard about CoinBase as a place where people would go to speculate on cryptocurrency values. However, as with all things cryptocurrency, the primary business of CoinBase has changed.
Now, CoinBase offers a cryptocurrency wallet that allows you to send and store cryptocurrencies, including:
CoinBase is licensed and registered. It is a regulated trading source that was trusted by many well before cryptocurrency became a thing.
There is a sense of security that comes from working with a company that is not new to the game. They offer a sense of stability and trust that very few new Bitcoin wallet providers can offer.
Best Bitcoin Wallet for the United States and Canada
At the risk of sounding like a broken record, we are going to recommend CoinBase as the best option for those in the United States and Canada. Until recently, CoinBase was restricted in the United States. However, over the years the company has continued to evolve to the point that they are now are licensed and can legally be used in the United States. For our money, the CoinBase wallet app is hands-down one of the top apps on the market.
Best Bitcoin Wallet for Australia
Binance is the best option for those living in the land down under. Whether you live in Australia or New Zealand, this is a trusted option that works well with the local currency.
We don’t feel that Binance is your best option if you are looking at a place for long-term storage. However, in the short-term it is a place where you can get the most out of BTC.
Binance allows you to trade against other cryptocurrencies and altcoins.
Binance is a great tool for Australians or New Zealanders who are looking to get into the global cryptocurrency market. Binance does business all over the world.
What Are Your Crypto Wallet Options?
We want to talk a little bit more about the different options you have for crypto wallets. We are going to discuss:
- Exchange Wallets
- Hardware Wallets
- Software Wallets
What Is a Hardware Wallet?
Hardware wallets are physical devices that are created to allow you to store cryptocurrency for long-term.
Hardware wallets are extremely safe because they are not connected to the Internet. When they are properly used, they cannot be hacked. Only a few companies manufacture hardware wallets for cryptocurrency.
Some of our top recommendations include:
- Bitcoin Paper Wallet
- Ledger Nano S
Software wallets are computer apps for your phone or your computer that store Bitcoin.
A software wallet is offers greater security than an exchange wallet. However, if your software wallet is connected to the Internet, it is not as safe as a hardware wallet. This is why we recommend that you limit your usage of software wallets for the Bitcoin that you are going to use daily. Remember, this is a wallet. You do not store all of the cash you have in the leather wallet in your pocket. Software wallets should be used in the same way.
Our recommendations for software wallets include:
- Bitcoin Core
- Exodus Wallet
- Jaxx Wallet
What Is an Exchange Wallet
This is a wallet that allows you to purchase Bitcoin or Altcoin and then it keeps the currency stored in your exchange account.
We absolutely do not recommend you store your cryptocurrency in exchanges for the long haul. Exchanges can easily be hacked or compromised because they have massive trading volume. Two of the more popular exchange wallets include:
- CoinBase Wallet
- Binance Wallet
Best Bitcoin Wallet for Use on Mobile Devices
The Best Option for Apple
Your Bitcoin wallet is not designed to be the ultimate security protection. It is like your leather wallet. It provides some security, but it is primarily convenient.
With this in mind, we recommend that you use the most convenient option, which is blockchain.info. This is the most user-friendly option for Apple products, and it’s free.
CoinBase wallet, as we mentioned before, is also a great option. Your cryptocurrency is going to be safe because you are working with a company that has a solid rep. The only downside with this product is that it only allows you to hold between five and six different crypto wallets.
Best Option for Android
For Android we are going to select Jaxx. Of course, our first recommendation is that you use a regulated wallet like CoinBase, which allows the buying and selling of currencies without issues. However, we feel that Jaxx is a great option for new users.
It is convenient, it is secure, and it allows you to store more cryptocurrencies than just Bitcoin.
Jaxx even lets you do some basic trading. If you are looking for the one must have option for Android, this is it.
As you can see, you have scores of choices when the time comes to choose a good Bitcoin wallet. You want to make sure that you choose one that has a good user interface. Take the time to look and see what other users say about the Bitcoin wallet you are considering. Pay close attention to the comments from reviews and third party forums. Reddit is a great source for information. Remember, keep your keys and your passwords to yourself. If you do this, you will be blocked from accessing your valuable Bitcoin.
Bitcoin something you want to hold onto for the long haul. You never know how much this investment is going to grow.
Yes. You can do this if you use a wallet like Exodus or Jaxx. You will get a unique address for every coin. However, each coin is going to be supported using the same user interface.
The short and the sweet is that you will lose your funds. Never send coins to the address of another type of coin.
The answer depends on the wallet you use. Some wallets, like CoinBase, will allow you to trade fiat currencies for Bitcoins or Bitcoins for fiat currencies. However, this only works with wallets that are regulated and have special licenses.
You can if you are using specially licensed and regulated wallets, such as those that belong to CoinBase. However, this is not normally available via software or hardware wallets.