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.
In This Guide
Signing up for a Bitcoin wallet is a very simple and straightforward process, and only takes 3 steps. These steps are:
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.
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.
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.
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 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. Binance is also one of the largest platforms for crypto loans.
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.
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Your money is at risk.
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.
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.
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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.
Bitcoin wallet not available separately from the trading platform
Lower security than other competitors
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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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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