First, we will look at the best Bitcoin digital wallets of 2023. Then we’ll talk about how to analyze this market and all the details of the market for cryptocurrency wallets or purses.
Ranking Mejor Cartera de Bitcoin 2023
What is a cryptocurrency wallet or digital wallet?
A cryptocurrency wallet is a service used to store the above. In other words, it’s like a traditional wallet, but it works on the Internet or in the virtual world.
These digital wallets have become fundamental tools in the development of the cryptocurrency world. But be careful, we are going to keep the keys we need to spend our bitcoins because with the first we have access to one cryptocurrency or another.
Ideally, this wallet should be ours, as in the case of classical wallets, but, unfortunately, on the Internet, we will have to trust such a provider for now.
How do cryptocurrencies and their wallets work?
Cryptocurrencies work based on cryptography. For these systems to work right, they need to have full binary codes. After all, we are dealing with network algorithms, and to distinguish between them we have to use this type of system.
What does this mean?
We are not storing the money itself, but the keys that represent these cryptocurrencies or bitcoins. That is, to make it clear to us, these cryptocurrencies are keys, not physical objects. These cryptocurrencies depend on two keys: public and private.
What are the differences between them?
The public key is the one we have to teach others so they can send us money there. Think of something like a Paypal email address that they can use to bring us revenue.
A private key is a security system and, in essence, is a password that we have to guard with all the zeal in the world because with it we can access our cryptocurrencies and be able to order them to a particular site. In other words, if someone can steal our private key, they can hack our digital wallet and send the cryptocurrency anywhere. In this case, let’s think of it as something like our email key or password or something like that.
What is the main function and characteristic of a bitcoin wallet?
The answer is obvious: store our digital money in a safe place.
Just like classic wallets kept our accounts in our pockets, these digital wallets keep our bitcoins, Ethereum, or any other altcoins in our digital spaces because we will have a unique address to do so.
Well, as we can see, we are dealing with a topic in which security is very important and with which we can see that we can classify companies in this field by their perceived security. I say apparently because we are talking about theory, but in practice, it is still not very clear, at least in the world of cryptocurrencies.
We will have to wait many years to see which ways are the safest. Also, the world of cryptocurrency is always changing, and most importantly, security is getting much better every year. This means that wallets are getting safer and safer.
People think that digital wallets at exchanges are the least safe, followed by online wallets and their software. And then there are cold or hardware wallets, which are thought to have the most security.
Something we know is that security is a fundamental element when choosing a cryptocurrency storage service.
What is the best cryptocurrency wallet?
As we mentioned earlier in this little guide to cryptocurrency wallets, it will depend on preferences.
No two solutions are the same for two people.
If we’re going to negotiate quite often, then obviously we’re not going to get into the tricky invention of Thresor; and much less if you’re going to trade. What would be the best portfolio in this case? It’s a prestigious exchange. Not every exchange is worth it here; be careful, because there are hundreds of them on the market. As in the world of online brokers, we always recommend you go to those who have more history and a “good name.”
In this case, we want to keep our currencies online as long as possible while at the same time being safe and able to buy and sell regularly.
But if we want to store cryptocurrencies for a long period with little interaction with the market, then we would choose the hardware type.
Cryptocurrency exchange houses (exchanges)
These cryptocurrency exchanges are the giants of the sector where we can do speculative buying and selling in these markets, and they are used by a large portion of traders who want to get rich in this world of cryptocurrency trading.
As a result, these businesses are primarily concerned with buying and selling. We can even open accounts in our FIAT-type currencies because they act like traditional stockbrokers. For example, only cryptocurrency markets are not centralized in the stock markets.
As the name suggests, this kind of service or business already focuses on wallet or purse services.
Like with other brokers, we won’t have to install any software to use these wallets. Instead, we’ll use them on their web servers, which means we’ll need a cell phone or computer that can connect to the web. Usually, they give us a private key that we need to keep somewhere safe, like on paper.
These types of companies have so far had fewer hacking incidents than exchange offices, but, of course, they are not immune to possible attacks.
Software bitcoin wallets
In this case, we go back to the example of brokers.
We can download a platform on our computer or cell phone, and with it, we can use the cryptocurrency wallet service in a way that always seems more professional.
We, especially in the brokerage world, have always liked being able to do transactions on these types of platforms, although online platforms are more practical to simplify trading, as in the previous case.
Mobile Wallet for Android or iOS
They are called “hot wallets” because they work with apps on our phones that we have to download from the Android or iOS systems.
Years ago, Apple screwed up the development and downloading of these wallets in its store, which meant that for a while they were only on Android. It later changed its mind and took them back, but that led to Google’s product taking advantage and establishing itself as the standard in mobile/cellular wallets.
No doubt we face the wallet type with detractors and defenders. Defenders will say that it is the most convenient system for them because we have to remember that there are people who do not use laptops or PCs, so cell phones have become almost the only option.
Critics say that this system has a lot of problems and that it’s not possible to keep an eye on security with a cell phone.
Cold wallets or hardware-type wallets
As we understand it, we are talking about physical devices on which we are going to store our cryptocurrencies.
The classic type of this type of storage is a typical USB system with a small gadget similar to the previous one.
With this type of wallet, we already have to buy that element, which makes the product more expensive. This is recommended for people who have decent cryptocurrency portfolios.
Which bitcoin wallet to choose?
That’s a good question.
Well, we will have to choose the one that best suits our needs and characteristics.
- Like in the example we gave, the type of hardware is not appropriate if we are barely managing a couple of hundred euros.
- Now, if we’re managing portfolios of tens of thousands of euros, things change, and it becomes necessary to look for the most secure storage systems.
- Moreover, a pretty effective option in this matter is to diversify between different options, not only to spread your “balls” more evenly but also to see which one works best.
- Despite all we hear about hacking attacks, don’t think it is that common, or at least no more common than a cell phone and wallet thefts on the street.
There is always a risk, both in the physical and virtual worlds.
What are some basic tips we can follow to protect our bitcoins and our wallets?
The most important thing is to protect our private keys above all else. If we are security fanatics, the safest way is to keep them offline, that is, on physical paper. So we can follow the following steps or tips:
- Store your private keys in as secure an environment as possible, ideally offline, such as on paper.
- Back up those private keys. For example, if we have a key on a piece of paper, it is logical to make a second piece of paper to be stored elsewhere. Whenever we lose one, in that case, we should immediately make another backup.
- Make the passwords secure enough. One of 14 characters is better than one of 8.
- Use a dedicated and exclusive email account with extra security points.
- Use VPN services to do most of our online travel. This way, we avoid tracking as much as possible.
- While this is something we should already take for granted, remember that we should always use the double authentication factor.
In the future, states will use things like stopping money laundering as an “excuse” to force the creation of digital money systems. These are the systems that will need this kind of wallet because the traditional wallet won’t work anymore, especially since physical money will be illegal.