The Best Bitcoin Wallets For Beginners

If you do a bit of research into the crypto world, you will notice that Bitcoin wallets come in many different forms. Even though their core function is to keep your digital assets safe, there are often major differences between wallets.

Some are better suited for mobile users, others are more into the long-term Bitcoin investors. Regardless of your taste, choosing the right Bitcoin wallet is essential if you are to safeguard your BTC holdings.

Your private keys are of the utmost importance as if you lose them, you will probably lose all your Bitcoin assets. So, with all the different types of BTC wallets, which ones are the best of the crop? Let’s take a closer look!

How do Bitcoin Wallets Work?

A crypto wallet is a place where you store and access your digital assets. You will come across two types of wallets – physical (also known as offline or cold wallets) and digital (online or hot wallets).

It is important to note that your Bitcoin is not actually stored in the wallet. Instead, you use Bitcoin wallets to store your private keys safely – you need the private keys to access the coins you have on the blockchain network.

A private key is a unique code that verifies the assets you try to access are indeed yours. In addition to the private key, you also need to have a public key that you use to send or receive BTC.

With that in mind, physical wallets are mainly devices that you need to buy and that are not connected to the internet. Hot wallets, on the other hand, can be further distinguished into three sub-categories:

1. Mobile app wallets – applications that you download on your smartphone or PC.
2. Desktop wallets – mainly web extensions that work on any browser.
3. Online wallets – custodial wallets owned by crypto exchanges.

Of course, all types of wallets have their advantages and drawbacks, but they have one core function – allowing you to transfer, store and receive your BTC coins.

Storing Your BTC Coins in a Wallet

Before we take a look at the wallets that you can use to store your Bitcoin private keys, you need to know how you can actually use them. The process is quite simple – all wallets have a public and a private key.

As stated beforehand, private keys are how you get access to your assets, but the public key is meant for sending or receiving Bitcoin. When buying Bitcoin, you have to provide the public key, which is the address where the coin is transferred.

A general piece of advice that experienced traders will tell you is to start off by sending smaller amounts of BTC to your wallet from the crypto exchange. That way, you will ensure that the coins made it safely to your wallet and only after that, you can proceed with sending the rest of the assets.

Best Bitcoin Wallets by Categories

We know that traders have different preferences for their wallets, so our experts tried to diversify the list of Bitcoin wallets as much as possible. We have done thorough research on top-class BTC wallets, so all inclusions in our list are 100% secure, with certain features making them better suited for a different category of users.

1. Best for Novices – Coinbase

First off, we had a big dilemma between Coinbase and Binance, but we went with the first one because Binance faces some regulatory issues in certain countries – the USA, most notably.

As such, our experts say that the Coinbase wallet is the best hot wallet for novices as is a very intuitive and highly secure wallet backed by a world-class exchange platform.

The user interface is an important feature of any wallet, and Coinbase’s is easy to navigate. It has a three-tab layout and functions just a click away. As a reputable wallet, besides Bitcoin, you will be able to store other cryptocurrencies, such as Litecoin, Dogecoin, and BNB.

Note that you must make a big distinction between the Coinbase exchange and the wallet. The exchange is one of the most well-known trading platforms in the world, and by keeping your assets in the said wallet, you will surely have an easier time trading them.

As for the Coinbase wallet, you can use it without opening an account at the exchange, and what is more important – it is a non-custodial wallet. It means that your private key is stored on your device – not on Coinbase’s servers.

2. Best for Experienced Traders – Electrum

Moving on the other side of the spectrum, we have a wallet that is specially designed for experienced Bitcoin traders – Electrum. It is also one of the oldest wallets in the market, as it hit the industry just a couple of years after the Bitcoin creation.

Standout features of Electrum include private key encryption and 2FA. This is a hot wallet that gives you complete online encryption for sensitive Bitcoin information.

Furthermore, Electrum verifies your Bitcoin transactions on the blockchain network, and thanks to its MultiSig feature, you can transfer assets between several wallets.

Electrum also supports other offline wallets like Trezor and Ledger. Electrum is fully compatible with all devices – desktop and mobile, making it one of the most convenient options for your private keys.

One slight negative we would assign Electrum is the lack of phone contact. You will be able to turn to the FAQ section on its official website, or to its Reddit support page. Finally, if you want to store and trade with several cryptocurrencies, Electrum is not for you – it only supports Bitcoin!

3. Best Non-Custodial Wallet – Exodus

Exodus is another hot wallet in this list and it is a non-custodial one, which we see as a big advantage. This means that only you have access to your private keys, making your assets much safer.

Exodus runs smoothly on Mac, Windows and Linux computers, but there is also an app that Android and iOS users can download – making it arguably the most complete wallet in this list.

We also have to give great grades to the user interface, which is slick and easy to understand. The wallet is part of the Exodus exchange platform, so you will have no problem making quick and seamless transactions. A good sign of Exodus’ reliability is the fact that it supports over 260 cryptocurrencies – with Bitcoin among the leading ones.

However, we also have to warn you about some small downsides of Exodus. Most notably, if you want to buy Bitcoin with a fiat currency and store it in your Exodus wallet, you will need to purchase the asset on a centralized exchange and only then transfer it to your wallet. Additionally, even though using the wallet is free, Exodus will still charge you a certain transaction fee if you use its exchange.

Now, back to the advantages – we all know that the main drawback of hot wallets is the risk of a hacker’s attack, but Exodus is fully compatible with Trezor, so you can store your private keys offline!

4. Best for Mobile Users – Mycelium

Nowadays, we are all used to spending vast portions of our time on our smartphones, so if you are a vivid mobile user, then Mycelium is your perfect pick.

This is a wallet that has been around in the crypto world since its early beginnings, and it is a mobile-only wallet that runs on all Android and iOS devices.

Mycelium has a simple user interface, but it supports fewer tokens compared to the other wallets in this list. But, since we talk about Bitcoin, Mycelium supports transactions with it, and it is all we are interested in for now!

You can buy and sell Bitcoin directly on the app, and Mycelium allows you to make those transactions with fiat currencies.

Moreover, Mycelium is a non-custodial wallet, so you are the owner of your private key. What is more, Mycelium supports QR codes and allows you to set custom transaction fees. Last but not least, Mycelium is compatible with hardware wallets from Trezor, Ledger and KeepKey.

5. Best for Security Features – Trezor Model T

Let’s now switch our focus to hardware wallets a bit. Trezor is a company that has been around for some time – having been established in 2011 as a subsidiary of SatoshiLabs a company from the Czech Republic.

Trezor comes with very similar features to the Ledger Nano X, with one major difference – Trezor’s software is open-source, so theoretically, it gives users another layer of security.

Trezor Suite, which is the company’s new user interface, was released just recently, and it replaced the Wallet Web app. You can access the Trezor Suite from the company’s website, but the user interface runs natively on your desktop, so it is another plus when it comes to security features compared to a web-based app.

An impressive stat about Trezor wallets is that they support over 1,800 tokens and coins, and you can make direct transactions in the Trezor Suit thanks to the integrated exchange.

Lastly, the Model T by Trezor comes with a touchscreen display and a USB cable for computer connection. If you want direct storage to your hardware wallet, then you will be happy to know that Model T comes with a microSD card.

A small disadvantage is that Model T does not have Bluetooth support, which some security advocates don’t see as a big problem. Many consider Bluetooth connectivity to be a vulnerable feature that hackers may seek to exploit.

6. Best DeFi Wallet – Crypto.com

Lastly, the DeFi space deserves special mention, and the best wallet for it is Crypto.com. It has tons of decentralized finance tools, a great onboarding process and a robust security framework, making it as close as possible to perfection.

Crypto.com is an excellent choice for everyone who seeks to embark on a journey in the decentralized finance world. By using the wallet, you will have complete control over your digital assets and private keys, with additional features including one-to-one crypto swaps and tools that can help you earn passive crypto income.

As a non-custodial wallet, you can download the Crypto.com DeFi wallet and use it for everyday transactions without creating an account at the Crypto.com exchange platform.

Honourable Mentions

It is hard to pinpoint all the world-class Bitcoin wallets, as we only have so much space! The above-mentioned wallets stand out due to their versatility and stand out security features, but you won’t make a mistake if you look in another direction and choose any of the following ones:

• SafePal
• Ledger Nano S Plus
• KeepKey
• Binance
• BlueWallet
• OPOLO
• Wasabi

These are just the tip of the iceberg, so one thing is sure – you will never be short of options when looking at the best Bitcoin wallets.

All of the above-mentioned options fall under different categories – mobile, hardware, web-based, etc. so we encourage you to compare them and see which one suits your needs and preferences the most!