What is the best free bitcoin

Bitcoin wallets

Wallets for Bitcoin and other cryptocurrencies

Our top 5 Bitcoin wallets in comparison

WalletTypeCryptocurrenciesCore benefitservicePlatforms
LedgerhardwareBitcoin + over 100 moreHigh securityvery easyiOS, Android, Windows, Mac, Linux
BitBoxhardwareBitcoin, Litecoin, Ethereum + ERC-20 tokensHigh securityvery easyWindows, Mac (Web App)
ExodussoftwareBitcoin + over 100 moreIntegrated tradevery easyWindows, Mac, iOS, Android, Linux
TrezorhardwareBitcoin + over 100 moreHigh securitylightWindows, Mac, iOS, Android, Linux
GuardasoftwareBitcoin + over 45 moreIntegrated tradelightWindows, Mac, iOS, Android, Chrome

What is a Bitcoin Wallet?

If you want to buy Bitcoin or other crypto currencies, you first need a suitable wallet. The wallet works in a similar way to a real wallet. Unlike a real wallet, however, no coins are placed in the wallet, because Bitcoin is a digital currency. For this reason it is a pure one digital wallet. Wallets are also known outside of the world of Bitcoin & Co. and are sometimes referred to as cyber wallets or e-wallets. It can be used to pay for digital goods on various electronic platforms. The same applies to the wallet for cryptocurrencies. If you want to buy something with Bitcoin, you pay from your wallet.

However, the analogy ends at this point. Because it is not rightthat the coins themselves be kept in the wallet. In fact, the user only saves the Keys or the private keysrequired to issue coins. The cryptocurrency (e.g. Bitcoin) is still stored in the blockchain and not in the wallet. In this sense, the wallet is a kind of digital keychain, to which all keys for the transactions are attached. Colloquially, however, it can be said that coins are stored in the wallet.

Blockchain simply explained

In our comprehensive article on blockchain, you will find out in an easy and understandable way what a blockchain is and how it works.

How does a Bitcoin wallet work?

With Bitcoin, factors such as transparency and traceability of transactions play an important role. Each wallet is therefore assigned a specific character string or the wallet actually only consists of such a character string. Each of these strings is unique. This means that there are no two wallets with the same character string. This makes it possible to clearly distinguish the various wallets from one another at any time. The credit is then stored in the wallet.

Basically, everyone has an insight into how much credit is stored in a wallet. So if someone knows the character string of a wallet, he can see its credit balance at any time. However, the wallets are anonymous. So it is not clear who owns the wallet. Personal data is not stored in connection with the wallet. Furthermore, the wallet is protected with a password. So it is not enough to know the character string to be able to access a wallet and its credit.

In principle, anyone can buy as many wallets for Bitcoin as they want. This is just like a real wallet, which everyone can also carry around as many as they like.

What is the difference between public key and private key?

The public key or Public key is the Receiving address of an account. This key must be public so that you can, for example, receive payments from other users. They have to know the public key for this. However, it is only with the private key or the Private key possible, the Bitcoin stored on the public key actually to spend. The private key is the one that is stored in the wallet. It is therefore of the utmost importance that the private key does not get lost under any circumstances. Loses the legitimate owner has his private key, too no control over the money in the wallet more.

What types of wallets are there?

Wallets can basically be in Software and hardware variants distinguish. A software wallet can take very different forms. For example, the Web wallet. The user of an exchange for cryptocurrencies receives an address linked to his account, via which trading orders can be executed. However, this form of wallet can be problematic in the event that an exchange is hacked. Then unauthorized persons could gain access to your own coins. They are also popular and widespread Mobile wallets. These exist in the form of an app on the smartphone. The advantage here is that the wallet is with you everywhere on the go. It works in a similar way Desktop wallet, but here the software is installed on the PC. The advantage of the desktop wallet is the larger range of functions of the software compared to an app.

Advantages of a software wallet

  • free
  • easy administration of small bitcoin amounts
  • uncomplicated handling when sending and receiving Bitcoin & Co.
  • direct purchase of cryptocurrencies within the wallet (depending on the provider)

Disadvantages of a software wallet

  • possibly insufficient security for larger Bitcoin amounts
  • Internet connection required

Who one particularly secure wallet wish he should get the Hardware wallets look at. These wallets are stored on a USB stick or other portable storage medium. The private keys are then on the stick and all transactions carried out via the wallet are saved. The decisive advantage of this variant is in the Offline storage to see. As long as the stick is not connected to an internet-enabled computer device, nobody can access it.

Advantages of a hardware wallet

  • highest security standard for managing Bitcoin & Co.
  • simple backups and security mechanisms
  • no connection to the internet necessary

Disadvantages of a hardware wallet

  • not free
  • difficult handling for inexperienced users

Are my Bitcoin safe in the wallet?

Anyone who uses a wallet naturally wonders how safe their money is in it. After all, the coins can reach a high price and the wallet can have a correspondingly high value.

Who on a Maximum security Value, who opts for one Hardware wallet. If the storage medium is not connected to a computer, there is in principle no access for hackers Exodus. If, on the other hand, you use the wallet of an exchange, the problem arises that the private key is often stored on the provider's side. So here it comes down to safe and reputable providers who have not had security scandals in the past. In addition, it must be ensured that the private key does not get lost under any circumstances. In any case, a long and very securely structured password must be selected for the wallet. Access to the wallet via the browser is generally considered to be somewhat less secure; access via the smartphone or PC is more secure. If you use a wallet for Bitcoin and other cryptocurrencies, it should be mandatory to use a strong firewall and a corresponding virus scanner.

What are cryptocurrencies actually?

In our comprehensive article on cryptocurrencies, you can find out what cryptocurrencies are and what different types there are.

Basically, it is not possible to send or receive coins without the private keys. This also means that the private keys must not be lost under any circumstances. If the keys are stored on the smartphone or PC, for example, and the corresponding device is lost, the coins have also disappeared. Often, however, there is a kind of "Recovery phrase", with which the wallet can be restored. Personal responsibility for the secure management of crypto currencies such as Bitcoin therefore plays an important role.

Which is the best Bitcoin wallet?

The key question of which of the various wallets is the best is difficult to answer across the board. The most important factor in choosing a wallet is security and convenience. If there is an enormous amount of Bitcoin or other cryptocurrencies that should be managed with maximum security, we recommend using one Hardware wallet.

In this case we recommend the Ledger Nano S.

In all other cases there is usually one Software wallet sufficient. Sending and receiving Bitcoin and other cryptocurrencies is here faster and easier. In the case of our recommended software wallet, it is even possible to buy and sell directly within the wallet.

We can recommend the eToro wallet as a software wallet.

Disclaimer: Cryptoassets are highly volatile, unregulated investment products. No EU investor protection. Your capital is at risk

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