While all leading cryptocurrency wallets provide a high level of security for safekeeping your crypto assets, improper security practices on behalf of the user can lead to a complete loss of funds. Crypto enthusiasts should take care to store the bulk of their assets meant for trading on exchanges using cold storage methods, and never share your wallet’s login details, recovery phrase, or private keys with anyone.
If you're looking for a wallet for your Bitcoin, consider the Trezor Model T. This option tops our list of best Bitcoin wallets because of its security features, which is one of the features you may want to consider when you're searching for the right wallet for you.
Bitcoin has gained widespread acceptance and continues to grow in popularity. Unlike stocks at a brokerage, you can withdraw your cryptocurrencies from a crypto exchange and store them in an outside wallet. The best Bitcoin wallets make it easy (and maybe a little fun) to securely store and manage your crypto portfolio.
If you’re looking to buy and store Bitcoin or other cryptocurrencies, you may be on the hunt for the best Bitcoin wallets. We looked at a long list of Bitcoin wallets focusing on cost, user experience, supported cryptocurrencies, customer satisfaction, and cryptocurrency exchange integration. We've narrowed down the list to the following five names.
Investing in cryptocurrencies, decentralized finance (DeFi), and other initial coin offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Best for Security: Trezor Model T
- Purchase Cost: $179
- Cloud Storage: No
- Cold Storage: Yes
Why We Chose It
We chose Trezor as best for security because it comes with the strongest security features and track record of any reviewed hardware wallet.
Pros & Cons
Web-based user interface with exchanges built in
Natively supports 16 cryptocurrencies
Open-source software
Higher price point than others
Small touchscreen for typing
Confusing for a first-time user
Overview
Trezor, like Ledger, is a name synonymous with crypto cold wallet storage. Its Model T is the second generation of hardware wallets it's created. The Trezor Model T is very much like the Ledger, but it gives the user the ability to access third-party exchanges, like Changelly and CoinSwitch, directly in its website interface. While this is quite convenient, it hardly justifies its more expensive price tag of $179.
The Model T utilizes a touch screen, which can be easier to use for beginners than the buttons their previous model used. The Trezor also has a MicroSD card slot, allowing you to use MicroSD cards to encrypt the PIN and further protect your device from attacks.
Like the Ledger Nano X (below), the Trezor Model T also comes with a USB-A to USB-C cable so that you can connect to your desktop computer. You can connect to an Android smartphone with a USB-C to USB-C cable, but not directly to an iPhone.
The Trezor Model T supports more than 16 cryptocurrencies and all ERC20 tokens. Trezor indicates that other cryptocurrencies are supported by its hardware wallets using a third-party wallet interface. These are considered to be non-native assets.
Some consider the Model T to be a bit more secure than the Ledger Nano X due to the X’s Bluetooth connectivity (although Ledger's Bluetooth is optional).
Best for Integration: Ledger Nano X
- Purchase Cost: $149
- Cloud Storage: No
- Cold Storage: Yes
Why We Chose It
We picked Ledger Nano X because it offers secure cold storage and connects to devices with Bluetooth or USB through the Ledger desktop or mobile app.
Pros & Cons
Ledger Live's user interface is intuitive and convenient
Support for up to 100 apps
Open-source software with added benefit of customer and community support
Bluetooth integration a potential vector of cyberattack (USB-C is still an option)
Bluetooth feature not perfected, unavailable with a desktop
On Nov. 9, 2022, Charles Guillemet, Ledger's Chief Technology Officer, reported that the company suffered a “few scalability challenges” as crypto investors rushed to offload their holdings from crypto exchanges in response to the FTX crisis.
Overview
The Ledger Nano X is the second generation hardware wallet from Ledger, a French company launched in 2014. The Nano X resembles a USB drive and connects to your device via USB or Bluetooth. This means you can connect the wallet to your iOS or Android device without needing a computer. It supports more than 5,500 cryptocurrencies, and this list grows annually as the Bitcoin community asks for support for their favorite cryptos.
While the device itself is a cold storage hardware wallet, the Ledger team has created the Ledger Live software that provides a user interface for all your holdings. This gives users the ability to add new wallets for different cryptocurrencies to their devices and manage their portfolios.
Ledger hardware wallets have been and are the most popular in the industry. The Ledger also comes with a USB-C to USB-A cable and can be connected to a desktop computer. An OTG cable will connect to a smartphone if that's preferred over Bluetooth.
Best for Advanced Bitcoin Users: Electrum
- Purchase Cost: Free
- Cloud Storage: Yes
- Cold Storage: Yes
Why We Chose It
We chose Electrum because it's secure, open-source, and offers advanced features and options.
Pros & Cons
Customizable transaction fees
Greater level of security than most hot wallets
Enables the creation of Lightning Network payment channels
Bare-bones user interface
Only works for Bitcoin
No formal customer support, only documentation and community
Overview
Electrum is one of the original Bitcoin wallets. It has been around since 2011, two years after Bitcoin’s creation, and has changed little since. While this wallet is bare bones in terms of its user interface and commitment to only Bitcoin, it excels at this primary function. Electrum is also more suited for advanced users due to its complex options.
Electrum is open source, allows its users to set custom transaction fees, and has the option to choose between legacy Bitcoin and Segwit. It also offers users the ability to determine the level of security they wish to use. For example, you can create a standard wallet, one with two-factor authentication, or a multi-signature wallet. You can also elongate your seed phrase with custom words.
Electrum is perfect for the more advanced Bitcoin holder who wants great security features and customizability, all in a simple layout.
Best for Beginners: Exodus
- Purchase Cost: Free
- Cloud Storage: Yes
- Cold Storage: Yes
Why We Chose It
We picked Exodus as best for beginners because it's free, has good customer support, and optional support for cold storage.
Pros & Cons
Built-in exchange
Good customer support
Easy setup process
Closed source software
Lacks 2FA security protection
Overview
Exodus is a desktop and mobile wallet with a straightforward user interface and an exchange built-in. One of Exodus’s most popular features is the ability to swap between a growing number of cryptocurrencies. Exodus currently allows for swaps between more than 1000s of cryptocurrency pairs.
With its simplicity, this wallet is great for beginners just getting into crypto. It also has excellent support, an essential feature for beginners getting into what many would consider a confusing market.
While it is great for beginners, more advanced users may find it lacking in some features. First, Exodus is a closed-source wallet. This goes against the ethos of the idea of Bitcoin and blockchain and can create some security concerns as its code is not open for everyone to see. Instead, users rely on the Exodus team to ensure there are no holes in the security of the wallet.
Exodus has the option to set custom fees to keep costs down, in addition to the option of automatically setting a fee that ensures the transaction completes quickly.
Best for Mobile Users: Mycelium
- Purchase Cost: Free
- Cloud Storage: Yes
- Cold Storage: Yes
Why We Chose It
We chose Mycelium for mobile users because it gives you more control over transaction fees and integrates with a hardware wallet.
Pros & Cons
Customizable transaction fees
Ability to use hardware wallets
Open-source software
Mobile only
Confusing for a first-time user
Thin customer support
Overview
Mycelium is an open-source and mobile-only Bitcoin wallet. Mycelium currently only supports Bitcoin, ETH, and ERC-20 tokens. In some ways, Mycelium is quite similar to the Electrum wallet. Some of the differences are that it is mobile only, has a more refreshed user interface than Electrum, and has a built-in exchange.
Mycelium, like Electrum, is one of the earlier wallets in the space. Also, like Electrum, you can set custom transaction fees so you can choose how long you’re willing to wait for a transaction to be completed.
Mycelium also has a few more interesting features, such as hardware wallet support, allowing users to hold their Bitcoin in an offline storage device while still using Mycelium’s user interface to see their holdings.
The Bottom Line
With many Bitcoin wallets to choose from, including a piece of paper with your public and private keys printed on it, you have a lot of options when finding the best Bitcoin wallet. Whether you want an easy-to-use online wallet or a super-secure hardware wallet, there’s a good option for your crypto storage needs. Our top choice for security is Trezor's Model T, but the best overall is the Ledger Nano X. More advanced users may benefit from Electrum while those who are just starting may want to consider Exodus. If you're a mobile user, consider using Mycellium.
$1.28 trillion
The market capitalization for Bitcoin as of June 19, 2024. This makes it the most widely traded and popular cryptocurrency. The market cap for the global crypto market was $2.37 trillion as of that date.
Compare the Best Bitcoin Wallets
Company | Type of Wallet | Purchase Cost | Incorporated Exchange | Compatible Hardware |
---|---|---|---|---|
Trezor Model T Best for a Security | Cold | $179 | Yes | Yes |
Ledger Nano X Best Overall | Cold | $149 | Yes | Yes |
Electrum Best for Advanced Bitcoin Users | Hot | Free | No | Yes |
Exodus Best for Beginners | Hot | Free | Yes | Yes |
Mycelium Best for Mobile Users | Hot | Free | Yes | Yes |
Guide to Choosing the Best Bitcoin Wallets
What Is a Bitcoin Wallet?
A Bitcoin wallet is a wallet that allows you to safely store your Bitcoin and other cryptocurrencies. These storage solutions can be physical devices or digital options like software. They store your private keys, which are used to give you access to your Bitcoin and allow you to conduct transactions using your cryptocurrencies.
Most hard wallets look like USB drives and often require connecting to a computer or other device. Digital or software-based wallets, on the other hand, can come in the form of apps that you can access on a computer or a mobile device.
Should I Choose a Hard or Software Wallet?
That depends, as it's a personal preference. Hard wallets are physical, portable devices that you can take with you wherever you go. Think of a hard wallet like a USB drive that you have to connect to a device to access. This is among the safest ways to store your passkeys as long as you have a safe connection. Keep in mind that you'll need an internet connection to use your hard wallet.
Software wallets are typically accessible via an app or website on your computer or mobile device, such as a smartphone or tablet. You can access these from anywhere as long as you have an internet connection. Software wallets are not as secure as hard wallets because they are prone to viruses, malware, and hackers. You can reduce the risk of being compromised by adding two-factor authentication to your wallet.
Paper wallets are physical wallets that have imprinted private and public keys for your cryptocurrency. These wallets may also have a special barcode that can be scanned. These wallets are fairly secure because they remove the keys from the network. As such, the network can't be accessed without these keys. One of the problems with these keys, though, is that they are susceptible to damage and deterioration.
Can I Have More Than One Bitcoin Wallet?
Yes, you can have more than one Bitcoin wallet. In fact, it's a good idea to use more than one wallet to store your Bitcoin or other cryptocurrency. To use multiple wallets, you'll need to create different accounts to house your passkeys. Keeping separate wallets can reduce the risk of having your cryptocurrency keys from being compromised by hackers. Having different wallets also helps if you have multiple crypto coins, including Bitcoin and Dogecoin. You can separate and keep them in different wallets as you wish.
You may have heard the term blockchain wallet. A blockchain wallet is a type of digital wallet that can be used to store and manage your cryptocurrency, including Bitcoin. You can also use a blockchain wallet to transfer your crypto and convert it into your local currency. Fees associated with blockchain wallets tend to be dynamic, which means they vary based on the transaction size.
Factors to Consider for Bitcoin Wallets
Before you choose your Bitcoin wallet, consider some of the following factors. Reviewing and doing your research may help you make an informed decision about which type and name you choose.
- Hard or software wallet: Decide whether you want a physical device or if you want the ease of being able to log into your wallet without having to carry your wallet around with you.
- Operating system: Will you be using your wallet using a Mac or Windows? If you plan on using a software wallet, will your usage primarily be on a mobile device or a desktop?
- Main requirements: Consider some of the primary criteria for using your wallet, including any associated fees and costs, transparency, the potential environmental impacts, your privacy, the level of control you'll have, and how your identity is validated.
- Features: Important features of Bitcoin wallets include two-factor authentication, the ability to hold other (multiple) currencies, conversion rates, ease of use, push notification, and customer support.
How to Set up Your Bitcoin Wallet
Once you decide which wallet you want to use for your Bitcoin, you'll have to navigate how to set it up. You may find some of the steps differ from wallet to wallet, but there are some general points that they all share.
- Download, install, or connect your wallet.
- Input your personal details, including your name, contact information, and Social Security number.
- You may be required to attach a piece of photo ID to verify your identity. Most financial companies and platforms need this under Know Your Client (KYC) regulations.
- Transfer your Bitcoin to your wallet and begin trading or transferring.
Why You Should Trust Us
We looked at more than a dozen Bitcoin wallets worldwide and decided on the top hot and cold wallets based on factors such as security, costs, and customer reviews. Security is a big consideration, so it’s important to use a wallet that is well-used and has plenty of security protocols in place. It’s also important to choose a wallet that works well with some of the larger exchanges so that you can quickly complete transactions in the open market. Investopedia launched in 1999 and has been helping readers find the best Bitcoin wallets since 2020.
Frequently Asked Questions
-
What Is a Bitcoin Wallet?
A Bitcoin wallet is a place that stores your digital Bitcoin and validates your transactions when you’re using your Bitcoin. A wallet keeps secret information, called a private key or a seed, used to validate transactions and sign them so your Bitcoin can be used to make purchases or exchange for another asset. This prevents someone else from using your Bitcoin or the transaction being altered by a third party.
-
How Does a Bitcoin Wallet Work?
A blockchain is a shared public ledger where all Bitcoin transactions are conducted from Bitcoin wallets. When a transaction occurs, there is a transfer of value between more than one Bitcoin wallet. A single party typically exchanges some value of Bitcoin for another asset or service with another Bitcoin wallet. When this occurs, every individual Bitcoin wallet will use its secret data to sign and validate transactions, providing mathematical proof that the buyer or seller is the owner of their Bitcoin wallet.
-
How Much Does a Bitcoin Wallet Cost?
Purchasing a Bitcoin wallet could cost you anywhere from $0 to $200 or more. Using a wallet doesn’t cost you anything if you’re just storing Bitcoin in the wallet. If you’re completing a transaction, the owner of the exchange or device that is housing your wallet will charge you various fees depending on what you’re trying to do. If you’re using a wallet as part of an exchange, you’ll likely pay either a flat fee of a few dollars or a percentage of the total transaction value.
-
How Do You Cash Out Your Bitcoin Wallet?
You can’t directly convert Bitcoin to cash whenever you feel like it, but you can sell your Bitcoin anonymously on the blockchain in exchange for the fiat currency you desire.
A crypto exchange can handle the transaction on your behalf and find a buyer so you can quickly convert the value of your Bitcoin into the cash you need. Every wallet has different rules and times for transferring your fiat currency to your bank account, but most can be done in one to three days after the Bitcoin sale is complete.
-
How Safe Are Bitcoin Wallets?
Bitcoin wallets are designed to be safe and secure, but it depends entirely on the type of wallet you use.
Hard or cold wallets are devices that aren't connected to the internet. Although they aren't completely hack-proof, they do provide an added level of security for your coins and passkeys. Hot wallets are software-based storage solutions that are connected to the internet. This makes them more vulnerable to hackers.
Being careful about how you use your wallets—regardless of whether they are cold or hot wallets—and adding two-factor authentication can help keep your crypto secure.
-
How Do I Trade Bitcoin?
The best way is to create an account on a crypto exchange that allows you to buy, sell, and trade Bitcoin. Once your account is open and verified, you'll need to fund it by transferring money into it so you can begin trading.
You can also buy coins using a Bitcoin ATM, through a stockbroker, and through peer-to-peer transfer apps.
-
What Is a Bitcoin ETF?
Bitcoin exchange-traded funds track the performance of the cryptocurrency. These are liquid assets that trade on exchanges just like stocks, which means you can buy and sell shares through your trading account or your broker-dealer. These ETFs hold a large amount of Bitcoin in their portfolio and track its price on a daily basis. U.S. regulators approved Bitcoin spot ETFs for trade in January 2024.
-
What's the Difference Between Custodial and Non-Custodial Wallets?
You can hold your Bitcoin (or other cryptocurrency) in a custodial or non-custodial wallet.
If you have a custodial wallet, you give custody of your private keys to a third party. Your keys are stored online, which means they are vulnerable to hacking and malware. Binance and Free Wallet are two examples of custodial wallets.
Non-custodial wallets mean you hold your private keys, which means you are responsible for the safety and security of your private keys and tokens. Examples of non-custodial wallets are BitPay Wallet and Electrum.
Guide to Bitcoin Wallets
- What Is Bitcoin? How To Mine, Buy, and Use It
- What Are the Safest Ways to Store Bitcoin?
- Why Storing Bitcoin in a Single Wallet is a Bad Idea
- Cryptocurrency Wallet: What It Is, How It Works, Types, and Security
- How to Create a Crypto Wallet in 2024
- Cold Storage: What It Is, How It Works, Theft Protection
- Hot Wallet: Definition, Types, Examples, and Safety Tips
- Dark Wallet: What It Was, Concerns, and Future
- Blockchain Wallet: What It Is, How It Works, Security Issues
- Can Crypto Be Hacked? - Bitcoin