Wallets! Learn the ins and outs of digital wallets and how to keep your Bitcoin safe.

Why do I need a wallet?

Before purchasing bitcoin, you’ll need to set up a wallet to store them. In this guide we’ll discuss types of Bitcoin wallets and why you may choose one over the other. Wallets can be on your mobile, on your desktop or even a physical hardware than you can carry with you. When you set up your wallet, you will have what is known as a private key which functions as the password to access your Bitcoin. As you complete a transaction, you will then receive what is known as a public key, which connects you from one Bitcoin user to another.

Please note: Never purchase a wallet on eBay. Someone may be attempting to sell you a wallet that has been tampered with to steal your bitcoin. Remember, regardless of which wallet you choose, keeping your bitcoin secure is most important.

Mobile Wallets

(Recommended if you own under $1000 worth of bitcoin)

Pros

• Free and easy to set up
• Accessibility: Your money lives directly on your smartphone or laptop.
• Convenience: Using Bitcoin mobile wallets allows you to send and receive bitcoins by scanning a QR code.

Cons

• Mobile and Desktop wallets are not secure enough to store large amounts of bitcoins.

Recommendations

We recommend Breadwallet or Blockchain Wallet for iPhone and Android users. It is easy and quick to set up for beginners; just download from the App store and you are ready to go in minutes.

Desktop Wallets

Pros

• Free and easy to set up
• Accessibility: Your money lives directly on your smartphone or laptop.
• Convenience: Using Bitcoin mobile wallets allows you to send and receive bitcoins by scanning a QR code.

Cons

• Mobile and Desktop wallets are not secure enough to store large amounts of bitcoins.

Recommendations

We recommend Exodus as a desktop wallet. It is one of the most secure and convenient software wallets.

Physical Hardware Wallets

(Recommended if you own over $1000 in bitcoin)

Pros

• Security: Hardware wallets, also referred to as cold storage, have been designed to protect your private keys from malware, virus and phishing. They are the most secure way to store your bitcoins.
• Portability: It can be connected to any Windows, Linux or Mac machine as an external device. You can use it anywhere in the world with any machine.
• Extensibility: It is compatible with different wallets: MultiBit HD, Mycelium and others.

Cons

• Price: They aren’t free, but they are a necessary expense if you’re holding larger amounts of bitcoin.

Recommendations

We recommend Ledger Nano S to $140 AUD TREZOR, which are renowned for their security and ease of use.

Advice for keeping your cryptocurrency safe

• Create backups of your private keys. To protect against accidents such as a robbery, fire, or hard drive failure, it’s recommended to have a backup of your private keys kept off-site.
• Never give your private keys to anyone. When you share your private keys with someone, you are essentially depositing all of your funds into the hands of that person.
• Hardware Wallets: When generating your private keys, make sure you are in an offline and secure environment
• Mobile and Desktop Wallets: Keep your software up to date. The latest version of the wallet software will have greater security.