Useful Tips for Choosing Your Bitcoin Wallet
A digital wallet is a requirement when buying and selling Bitcoin. A Bitcoin or digital wallet is the place for storing Bitcoin. Knowing the best Bitcoin wallet is very important when trading or investing in this cryptocurrency. That’s because you spend your hard-earned money on the purchase or sale of Bitcoin.
In the past few years, getting Bitcoin was a real challenge for most people. That’s because Bitcoin mining and acquisition were the main ways of earning Bitcoin. Unfortunately, most people didn’t find getting Bitcoin via these methods easy.
Today, people use crypto trading app to buy and sell Bitcoin. That’s what most people call Bitcoin trading. And, you can use these systems to trade Bitcoin hands-free or do it manually. But, you want to be sure that the Bitcoin you buy is safe. That’s where a Bitcoin wallet comes in.
Currently, you can choose from at least five types of Bitcoin wallets. So, how do you select the right wallet to store your Bitcoin? Here are useful tips to guide you when choosing your Bitcoin wallet.
Security should come above everything else. Choose a digital wallet that keeps your Bitcoin secure. If you opt to sign up with a web wallet, check the site to ensure it has HTTPS and not HTTP. Having HTTPS means the wallet has a secure protocol. Additionally, find out whether the wallet you want to choose provides robust and secure logins. For instance, does it provide 2-factor authentication? Ideally, consider the security measures that a digital wallet has in place before choosing a digital wallet for storing your Bitcoin.
Do you own the Bitcoin stored in your digital wallet? Some people assume they own the Bitcoin in their wallets because they are the ones that created the account. Unfortunately, you technically don’t own the Bitcoin in your wallet if you don’t have the private keys. To be sure that you own the Bitcoin in your wallet, make sure that you have the private keys. That means you can control your Bitcoin. Thus, you can move Bitcoin in and out of your wallet whenever you please. And, you can also back up the wallet outside the service.
Do you know how your wallet provider operates? Who is the entity behind the service? More importantly, is the wallet an open-source code? Without answers to such questions, you can’t be sure that your Bitcoin is secure. Third parties can peer-review and check open-source code for vulnerabilities. You should also ensure that the source code is continuously updated.
How reputable is the digital wallet? Use different forums to find out more about the Bitcoin wallet you want to use. That way, you will know your peers’ views about the wallet. If no feedback is currently available, ask participants in those forums about the wallet.
An excellent digital wallet should be easy to use. Ideally, using the wallet should not require experience. If you intend to use your Bitcoin more often, choose a wallet that’s compatible with mobile devices. Mobile compatibility means you can always access the Bitcoin in your wallet on the go.
If you consider anonymity necessary, choose a wallet that accepts little registration information from the users. For instance, are you required to verify your identity to use the wallet? Have such factors in mind when choosing a digital wallet if anonymity is important to you.
The Bottom Line
Bitcoin traders and investors have many digital wallets from which to choose. The choice of a digital wallet should depend on the features you consider essential. If none of the available wallets has all the features you want, consider using several of them.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes