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Cryptocurrencies have consistently been the best performing asset class over the past couple of years, and the scale of gains that have been seen have further motivated other people to also invest in cryptocurrencies.

Bitcoin, as the first and oldest cryptocurrency ever created, is at the very forefront of this, increasing almost 10x between March 2020 and a year later. If you’re looking to invest in Bitcoin, then there are two things you need to think about before you begin: Where do you wish to buy it from, and what is the best Bitcoin wallet for beginners?

In this guide, the best online Bitcoin wallets that you can use have been reviewed, and the general characteristics of Bitcoin wallets have also been discussed, including our recommendations of the best free bitcoin wallet, the best mobile bitcoin wallet, the best iPhone bitcoin wallet, the best windows bitcoin wallet, and others.

How to Sign Up for a Bitcoin Wallet – Quick Guide

Signing up for a Bitcoin wallet is a very simple and straightforward process, and only takes 3 steps. These steps are:

  1. Decide what is the best Bitcoin wallet for you: Depending on your requirements, there are different wallets that you might wish to use. However, according to us, the overall best Bitcoin wallet for beginners that you should use is easily eToro. In addition to Bitcoins, the eToro wallet also supports a variety of other currencies, which is a useful option to have even if you are only planning to trade Bitcoin for now.
  2. Download the Wallet: If you only wish to use the eToro wallet without also trading through the app, then you can simply download the eToro Wallet app separately and use it to store your Bitcoins. The best Bitcoin wallet app e Toro is available on both Android and iOS devices.
  3. Create a Wallet account: The last step is to create a wallet account on the eToro wallet, verify your identity, and then transfer any existing Bitcoins you have into the eToro wallet.

Best Bitcoin Wallets 2022

There are several different Bitcoin wallets out there that are available for use based on your preferences and trading requirements. Each of them has its own set of peculiarities and disadvantages. The best online Bitcoin wallets that you should consider have been discussed below in detail.

1. eToro – The Overall Best Bitcoin Wallet

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eToro easily earns our recommendation as to the best free Bitcoin wallet out there, and this reputation that it has is very well deserved. For starters, the wallet is part of the eToro platform and brokerage, which makes it FCA insured. This is a very big deal in the Bitcoin world since very few Bitcoin wallets are actually regulated. In addition to this, the wallet and the trading platform being linked together also offer a host of other advantages. For example, through the eToro platform, you can easily trade Bitcoins and other cryptocurrencies, which is a service that other Bitcoin wallets might not offer.

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If you are searching for the best free Bitcoin wallet, you will be happy to hear that eToro also does not charge any commissions, and instead, the only fees you pay when you trade through eToro are the spreads on each trade you make. They allow you to buy a variety of other assets besides Bitcoins, such as stocks, indices, commodities, currencies, and other altcoins. When you buy Bitcoins through the eToro platform, they are automatically stored on the eToro wallet. However, if you wish to use only the wallet without the trading platform, then you can do this too, via the separate eToro Wallet app that is available. It supports 120+ cryptocurrencies, which will prove to be useful when you start trading other cryptocurrencies besides bitcoins. The wallet also supports north of 500 crypto pairs, which means that if you wish to change your Bitcoins for other cryptocurrencies down the line, that will also not be a problem.

eToro fees

Fee Amount
Stock trading fee Free
Forex trading fee Spread, 2.1 pips for GBP/USD
Crypto trading fee Spread, 0.75% for Bitcoin
Inactivity fee $10 a month after one year
Withdrawal fee $5

Pros:

  • Bitcoin wallet linked to the eToro trading platform
  • Ability to buy and sell Bitcoins directly from the wallet
  • Mobile app available, being at the desktop is not required for transferring bitcoins
  • Provides access to a variety of other assets besides bitcoins
  • Supports over 500 crypto pairs to assist with easy exchange
  • Regulated platform, ensuring the safety of any Bitcoins you deposit on it.
  • The best free Bitcoin wallet that does not charge commissions

Cons:

  • Not suitable for advanced charting or technical analysis
  • eToro trading supports trading of fewer cryptocurrencies than other platforms

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Binance: The Best Bitcoin Wallet for Android Devices best bitcoin wallet for android

The Binance Bitcoin Wallet, widely known as one of the most secure Bitcoin wallets anywhere in the world, is one of the best online Bitcoin wallets, and not just for those who use the Binance trading platform to trade. For starters, if you are a trader on Binance, any cryptocurrencies you buy will be directly stored on the Binance wallet. This wallet supports every cryptocurrency that is traded on the Binance platform, which is every major cryptocurrency in the world, including Bitcoins. However, in this case, if you’re using the wallet as a complement to the trading platform, then you will not be able to control your private keys. However, there are several other safety features that you will benefit from. For example, you will be able to use the two-factor authentication feature in addition to getting email notifications whenever your wallet is accessed.

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However, if you wish to use the wallet without the trading platform, you can also download the Binance Trust Wallet as a mobile app on both Android and iOS devices. This will establish your wallet as a completely separate entity from your Binance trading account. Binance itself will not have access to your funds in this Bitcoin wallet. This is a more decentralized solution to storing your Bitcoins.

Binance fees

Fee Amount
Crypto trading fee Commission, starting from 0.1%
Inactivity fee Free
Withdrawal fee 0.80 EUR (SEPA bank transfer)

Pros:

  • Highest selection of cryptocurrencies besides Bitcoins
  • Option to use the wallet without using the trading platform
  • Very low fees
  • Highest level of security of any Bitcoin wallet
  • Supports a wide variety of cryptocurrencies and crypto pairs

Cons:

  • Unresponsive customer service
  • Charges commissions on trades that you make

Your money is at risk.

3. Coinbase: The Best Bitcoin Wallet for iOS-supported Devices

what is the best bitcoin wallet Coinbase is a specialized cryptocurrency exchange and the best iPhone Bitcoin wallet out there, just the same as Binance, therefore a lot of the services it offers are quite similar to those offered by Binance. For example, the Coinbase Bitcoin wallet can also be used in 2 different ways. For starters, if you choose to buy Bitcoins through Coinbase, they are automatically stored on the Coinbase Bitcoin wallet on the website. However, the cryptocurrencies stored on the website are not accessible on the move. If you wish to have this functionality, then you might be better off opting for the Coinbase native mobile app.

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Through the app, you will be able to view and transfer your Bitcoins on the move, without having to access the Coinbase website all the time. This app also supports two-factor authentication and has a variety of other security features that are designed to keep your Bitcoins safe. The Coinbase native mobile wallet also supports a variety of other cryptocurrencies besides Bitcoins.

Coinbase fees

Fee Amount
Crypto trading fee Commission, starting from 0.50%
Inactivity fee Free
Withdrawal fee 1.49% to a U.S. bank account

Pros:

  • Wide variety of cryptocurrencies supported
  • Highest selection of cryptocurrencies besides Bitcoins
  • Option to use the wallet without using the trading platform
  • The Best iPhone Bitcoin wallet with very low fees

Cons:

  • Unresponsive customer service
  • Charges commissions on trades that you make

Your money is at risk.

4. CoinCorner – The Best Bitcoin Wallet for Beginners

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If you are a beginner and are looking for a platform that does not require you to have a lot of technical knowledge, then CoinCorner might be the best bitcoin wallet for beginners. The crypto wallet also functions as a trading platform, and therefore you can buy and sell Bitcoins through the CoinCorner platform too. However, as opposed to the other platforms on this list, where CoinCorner is different is that you cannot download the wallet as a separate app, and it is only accessible through the CoinCorner platform.

In addition to this, the safety features that CoinCorner’s bitcoin wallet has are not in the same league as the other options on this list, and thus, even though the platform has been designed in a way that makes it easier for beginners to use it, there is a noticeable trade-off in terms fo the security of the platform. Traders usually use CoinCorner as a starting point as it is the best Bitcoin wallet for beginners and then gradually move on to other, more secure, and advanced platforms.

Coincorner fees

Fee Amount
Crypto trading fee Commission, starting from 1 GBP/EUR
Inactivity fee £20 per month after 24 months
Withdrawal fee Variable. Free for bank transfers within UK

Pros:

  • Easy to use and navigate, best Bitcoin wallet for beginners with little to no technical knowledge
  • Easy to add funds to your account via a variety of methods
  • Recurring investment options available

Cons:

  • Bitcoin wallet not available separately from the trading platform
  • Lower security than other competitors

Your money is at risk.

What is a Bitcoin Wallet?

When you keep cash or credit cards with you, they cannot simply be kept anywhere. Usually, you have a wallet in which you store your cash. Similarly, as Bitcoin is a digital currency, it needs to be stored in a wallet too. However, a Bitcoin wallet is usually a tad more complicated than a simple leather wallet in which you can store your coins because Bitcoin wallets serve a lot more purposes than simply allowing you to store the coins you have. For example, through your crypto wallet, you can secure your coins to make sure that they are safe from data theft, you can send coins to other users, and you can receive coins too. In this way, a Bitcoin wallet doubles up as a wallet and a bank in which you can store your Bitcoins.

Just like you would choose a bank account based on your preferences and requirements, a Bitcoin wallet has to be chosen carefully to ensure that it does exactly what you need it to do. For example, if you regularly transact in Bitcoins, then you might prefer using a mobile wallet that would allow you to access your coins and transfer them through your phone. However, these might not be the most secure alternative. Therefore, some people prefer using desktop wallets since the best Bitcoin desktop wallets have a higher level of security, even if they are not accessible on the move.

Whenever you set up a Bitcoin wallet, you are given an address. This is similar to your bank account number and SORT code. Through this wallet address, you can send and receive cryptocurrencies from other wallets. However, similar to a PIN code, your Bitcoin wallet needs to be protected so that no one but you can access it using solely your wallet address. This is done through a password called the private key.

This is a long alphanumeric key with special symbols that increases the difficulty of it being crackable. In fact, even the best computers would take hundreds of years to crack the private keys of secure wallets through a brute force attack. This might sometimes be inconvenient for the users of these wallets since they have to memorize such a long private key and use it every time they wish to transact through the wallet. To avoid this, some of the best Bitcoin wallet apps also allow you to set up a biometric login, especially if you use them through your phone. This way, instead of having to enter the private key every time, you can simply log into the wallet through your fingerprint.

Bitcoin Paper Wallet vs Bitcoin Hardware Wallet

As mentioned earlier, there are multiple types of Bitcoin wallets that people can choose from based on their preferences and requirements. One of the biggest 2 categories in which Bitcoin wallets are divided is paper wallets and hardware wallets. Each of these has its own set of advantages and disadvantages, and the question of which is the best Bitcoin hardware wallet or paper wallet has been discussed below in detail.

A paper wallet is a very archaic way for you to store your bitcoins, and this is because in this case your address will be printed onto a piece of paper. This address is in the form of a QR code, and anyone who wishes to transfer bitcoins to you can simply scan this QR Code and they will then have your wallet address. If you use a paper wallet platform, then it will simply generate a wallet address. Then, you can print out the address and transfer all your cryptocurrencies to the address. Since this wallet is completely offline at all times, this means that it is virtually impossible for this wallet to be hacked. However, the fact that this wallet is offline at all times is also one of the biggest drawbacks of paper wallets, since it is a very tiresome and long process for you to be able to transfer your Bitcoins out of the wallet.

On the contrary, a hardware wallet uses a physical object to store your bitcoins. They are also a very secure option for you to store your bitcoins, however, getting started with them tends to be a little more expensive than paper wallets. In this case, you have to go to a hardware Bitcoin wallet provider and find the best bitcoin hardware wallet for you. Then, once the wallet arrives, you will have to set it up, which includes setting a PIN so that the wallet is not accessible to anyone except you.

Once the wallet has been set up, then you will be able to generate a wallet address that will allow you to transfer your Bitcoins to the wallet. The best Bitcoin hardware wallets provide an extra layer of security to your Bitcoins because you cannot transfer Bitcoins outside the wallet without having access to the hardware wallet. Even if someone were to somehow get their hands on the hardware device, they would not be able to transfer Bitcoins unless they knew the PIN that you set. On the other hand, if you end up losing the device, you can still access your funds and disable the device, through a fallback passphrase that will enable you to access the wallet. Then, you can order another hardware device for the same wallet, at which point the old device will be disabled for maximum security.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How to Choose the Right Bitcoin Wallet for You

Apart from hardware and paper wallets, there are several other types of wallets, which require several considerations to be made before you can go out and decide what is the best Bitcoin wallet for you. Each of these criteria has been discussed below in detail.

Wallet Type

The first and foremost consideration to make is to choose what is the best Bitcoin wallet type for you. There are 5 main types of wallets, and these include:

  1. Paper wallets, as discussed above, ensure that your Bitcoins are kept offline at all times, thereby providing maximum levels of security to your funds. However, even the best Bitcoin paper wallets are cumbersome and inconvenient to use, and thus they are not very frequently used by investors these days.
  2. Hardware wallets also described above in detail, make use of a physical device to keep your funds safe. Your bitcoins cannot be transferred without someone having access to the device as well as the PIN that you set for the wallet. Aside from the paper wallet, the best Bitcoin hardware wallets offer the highest level of security for your funds. However, since there is a physical hardware device involved that has to be authorized for every transfer, even the best Bitcoin hardware wallets are also a little inconvenient for people who regularly transact in Bitcoins.
  3. Desktop wallets are a little lower on the safety spectrum and a little higher on the convenience spectrum than hardware wallets. As the name suggests, these are wallets that can be downloaded to your desktop device. While the best desktop Bitcoin wallets are usually highly secure, they require you to have your computer with you whenever you wish to transfer funds outside your wallet. This might be inconvenient for a few people, which is why even the best Bitcoin desktop wallets are not very frequently used.
  4. Mobile wallets are a bit lower still on the safety spectrum, but their ease of use is so high that it far outweighs these factors. They allow you to access, store and transfer your cryptocurrencies easily through your mobile devices. The best mobile Bitcoin wallets also have an additional layer of safety as either a 2-factor PIN code or a biometric login.
  5. The least secure form of wallet is web wallets. They refer to trading platforms that also double as crypto wallets and store your crypto for you. The only exception to this is eToro, which is the best online Bitcoin wallet and among the most secure Bitcoin wallets out there. This is due to the fact that eToro is a highly regulated and licensed broker.

Custodian or Non-Custodian

Custodian and non-custodian wallets differ in only one major way: when you store your Bitcoins in a custodian wallet, the wallet provider is responsible for ensuring the safety of your bitcoins. Therefore, the wallet takes custody of your crypto and keeps it safe until you need to use it. On the other hand, if you choose a non-custodian wallet, then you will yourself be responsible for the safety of any Bitcoins that you choose to add to the wallet.

Features

The primary feature of a Bitcoin wallet is to keep your coins in a secure manner, however, some of the best Bitcoin software wallets offer additional features and functionalities in addition to this that can make them a good choice for you. For example, the eToro Bitcoin Wallet, in addition to permitting the storage and transfer of Bitcoins, also allows you to buy and sell Bitcoins through the eToro platform. Through eToro, you can also buy a host of other assets such as shares, indices, other cryptocurrencies, and commodities such as gold and silver.

Supported Coins

As Bitcoin was the first and is currently the largest cryptocurrency, it is not uncommon to find wallets that support only Bitcoins. While they might also fulfill all your requirements when it comes to storing your Bitcoins, the best online Bitcoin wallet to choose among others is the ones that support multiple coins like Ethereum and Cardano. This is for one very simple reason: even though you currently only wish to trade Bitcoins, this might not be the case tomorrow. If and when that happens, it will be easier for you to switch to other coins if your wallet already supports them, as opposed to having to search for a new wallet all over again.

Best Bitcoin Wallet for iPhone and Android

Different wallets can be used on different devices, and as a general rule, some of the best mobile Bitcoin wallets are usually compatible with both Android and iOS devices. However, certain wallets are more optimized for one kind of device, and this is definitely something that you should consider when you decide to choose the right wallet for yourself. While the overall best Bitcoin wallet app is easily eToro, Binance is the best mobile Bitcoin wallet for Android devices, while Coinbase is the best iPhone Bitcoin wallet, and it’s the best digital wallet for Bitcoin if you wish to use iOS devices.

How to Get a Bitcoin Wallet – eToro

The process of getting a Bitcoin wallet is relatively simple and straightforward, especially when you choose to do so through eToro, which is the best Bitcoin wallet. The process involves only 3 steps, which have been discussed below in detail.

Step 1: Open a Trading Account

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

The first and foremost step for you is to set up your trading account through eToro. To do this, you can simply head over to their website, click on Start Trading, and fill in the form. The form usually asks for your contact details, full name, and will ask you to set up your login credentials for later. Alternatively, you could also choose to link your Gmail/Facebook account to your eToro account.

Once you have filled the form, the next step then is to verify your identity. eToro requires both proofs of identity and proof of your address for you to verify your account and begin trading. The verification process is usually quick and only takes a few hours before you’re a verified user.

Step 2: Download the eToro Wallet to Your Phone

Once you have set up your account on eToro, the next step is to download the eToro wallet app on your phone through the Google Play Store or the App Store. After this, you can sign in to the wallet app using your eToro credentials.

Step 3: Add Bitcoins to your eToro Wallet

The last step is to add Bitcoins to your eToro wallet. If you already have Bitcoins stored in another wallet, you can use the address of your eToro wallet to transfer them onto here. Otherwise, if you do not have any Bitcoins already, then you can simply go to the eToro trading platform and buy bitcoins. They will then show up in your wallet and can be transferred to other crypto wallets.

Step 4: Sell Your Bitcoins

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Whenever you wish to sell your bitcoins and exchange them, either for fiat currencies or for other cryptocurrencies, you can do this very easily by simply heading over to the eToro platform and clicking on sell. As soon as the sale goes through, your funds will be visible on your eToro balance. You can then choose to either use them for trading or click on withdraw, at which point you will be able to see them on your bank account within a matter of a few days.

If you’re looking to trade Bitcoins and you are wondering what is the best Bitcoin wallet for beginners, there are several different options that you could choose from. However, few of them are as good as eToro, which is widely considered to be the best online Bitcoin wallet. Not only is it the safest custodian wallet, but it also allows you to trade bitcoins and other cryptocurrencies through the eToro platform in a completely commission-free manner. This, coupled with the easy-to-use interface, the highly regulated nature of the broker, and the social trading tools that it provides access to, make it the best free Bitcoin wallet that you can use.

eToro – Best Bitcoin Wallet

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What is the best Bitcoin wallet for iOS?

The best Bitcoin wallet for iOS will differ largely based on your requirements and trading preferences, but overall, Coinbase is definitely the platform most optimised for iOS use.

What is the best Android Bitcoin wallet?

The best Bitcoin wallet for Android will differ largely based on your requirements and trading preferences, but overall, Binance is definitely the platform most optimised for Android use.

How do I check my Bitcoin wallet address?

This depends on the type of wallet you have opted for. If it's a mobile wallet, then you can usually view your address as soon as you load the app up. If opting for a web wallet, you can find your address from within your account dashboard.

What is the safest Bitcoin wallet?

The safest Bitcoin wallet is clearly eToro, as in addition to its other features, the platform is also FCA approved, making it the most secure place to store your funds.

What is the best anonymous Bitcoin wallet?

The vast majority of Bitcoin wallets allow you to store your funds anonymously. The exception to this rule is if you are using a wallet provider that also supports purchases with a debit/credit card or other fiat currency method. If it does, you will be required to verify your identity before you can start using the wallet.

How do I keep my wallet private keys safe?

The easiest way to keep your wallet safe and secure is to write down your private keys on a piece of paper and keep them securely somewhere.

Can you store Bitcoin and Ethereum in the same wallet?

Yes, if you are using a multi-currency wallet, then you can store Bitcoins, Etheruem, and a variety of other cryptocurrencies in the same wallet.

About Nishit Kumar
About Nishit Kumar

I'm a second year Accounting and Finance student at the University of Warwick, in addition to being an incoming Trading Analyst at Morgan Stanley. I'm passionate about the financial markets and all things finance.

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