The famous Bitcoin crypto network can be very lucrative for any type of investor, but if you also want to invest in Bitcoin, then you need a Bitcoin wallet.
Such a wallet is a kind of digital wallet in which all your digital currencies are stored.
We explain it to you in detail below. You do not need any technical expertise for this, because we tell you exactly what Bitcoin wallets are, what different types are available and what you should pay attention to when opening an account.
That sounds good, don't you think?
- 1 What exactly is a Bitcoin wallet?
- 2 What should you take into account when arranging a Bitcoin wallet?
- 3 What types of Bitcoin wallets are there?
- 4 Hot wallets
- 5 Web wallets
- 6 desktop wallets
- 7 Wallets for smartphones
- 8 Multi-platform wallets
- 9 eToro wallet
- 10 Hardware or cold wallets
- 11 Ledger Nano S.
- 12 Trezor One
- 13 KeepKey
- 14 Paper Wallets
- 15 The difference between Bitcoin wallets and Bitcoin banks
- 16 Which wallet for which investor? The conclusion
- 17 eToro is the best choice:
- 18 Register with eToro
- 19 Step 1. Registration
- 20 Step 2. Personal data
- 21 Step 3. Download the eToro wallet
- 22 Step 4. Using the eToro Wallet
What exactly is a Bitcoin wallet?
Bitcoins, Ethereum and other crypto currencies are only available digitally. They do not exist in a physical form, so there are no Bitcoin coins or Litecoin bills available† Therefore, in order to own crypto currencies, a digital wallet is absolutely necessary for its storage.
It is only possible to trade or use Bitcoins via these Bitcoin wallets† It allows users to easily spend, receive and store digital currencies. Each wallet contains two different digital keys.
Only the combination of these keys makes a Bitcoin transaction possible, namely via:
- A public key – The public key acts as the recipient's home address and is required if you wish to transfer Bitcoins to another wallet. In this case, the key can be compared to an account number.
- A private key – The private key, on the other hand, is required to grant you as a recipient access to your own Bitcoins, which is similar to a PIN code linked to a bank account.
It is very important that the owner does not lose those keys, as they are unique and without them access is no longer possible. In addition, the private key must be guarded with the same vigilance as a pin code of your bank card.
Incidentally, there are not only Bitcoin wallets. If you want to purchase another crypto currency, such as Ethereum, you also need a special wallet for these crypto coins..
What should you take into account when arranging a Bitcoin wallet?
Now that you already have some basic knowledge about wallets, we could go a little further into the details, because a wallet is not just a digital wallet. As with real wallets, there is not one size, but different designs for different applications:
Some wallets are more convenient than others, can be more expensive, and others are of poor quality.
The same goes for a Bitcoin wallet: there are various security standards and applications that make certain types of wallets more interesting for certain target groups.
It is especially important for newcomers to be able to use a wallet easily and without any problems. Since there is often a lack of technical expertise, an intuitive operation could mean the best possible support for investors.
One of the main concerns of a Bitcoin wallet is its security, both offline and online† No matter how easy the wallet is to use, if hackers have easy access to it, then such a wallet is definitely not recommended.
Another important point is the built-in reinsurance in case of loss of the keys. No one would want to find out in the future that they have lost their savings by losing their own private key.
What types of Bitcoin wallets are there?
Since there are many different developers, it is advisable to learn a little more about the company and the developers of a particular wallet. Here are some important points to start with:
Hot wallets are all types of wallets that are connected to the internet in any form. These include web wallets, desktop wallets and wallets for use on smartphones.
Hot wallets are easy to use. But they offer less security than physical hardware wallets, something we'll talk about in more detail later.
As the name suggests, the web wallet is accessible through a browser. This is definitely the easiest way for beginners to create a Bitcoin wallet.
Its advantage lies in its application: any device that is connected to the Internet can access web wallets from anywhere. However, web wallets store the private key online, which certainly poses a security risk.
Electrum is one of the best-known examples of this. Electrum can be used on a Mac, Linux or Windows machine and is compatible with hardware wallets such as TREZOR, Ledger Nano and KeepKey.
With a desktop wallet, the key is managed independently† The user-friendly operation and the extensive functions make this option very attractive for both beginners and more experienced users.
Wallets for smartphones
Wallets for smartphones are of course only available for the mobile phone. We strongly recommend that you
The range of Android and iOS wallets is huge. Here is a short list of the most common smartphone wallets:
MyCelium is by far the most famous wallet for Android and is especially popular for its super easy operation for beginners† For even more security, the app includes backup functions.
Breadwallet was originally only available on iOS, but has recently been made available for Android devices† The control of private keys plus support of special passcodes make the app not only secure, but also very easy to use.
In terms of application and structure, Edge is mainly aimed at newcomers† An automatic backup function automatically saves the most important configurations, so that its users are always well protected.
In addition to wallets that are programmed only for one platform, some providers also offer their services on different platforms. The most popular providers of these are eToro and GreenAddress.
eToro is not only available for the PC, but also for the smartphone. Once you have an eToro account, you can create a wallet with it in just a few simple steps† The eToro wallet is specially designed for beginners.
The software application is quite intuitive and the users even receive instructions on various topics, for example how to receive or send digital money..
Digital currencies can be easily exchanged for the most common fiat currencies (such as US dollars, euros, yen, British pounds, Canadian and Australian dollars).
In addition to its Bitcoin wallets, eToro also offers other services, including CFD trading. eToro is also one of the few trading platforms that combines crypto trading with social media.
Hardware or cold wallets
Hardware wallets are physical devices that you can compare with a USB stick. The PC used to trade Bitcoins must in this case be connected to the hardware wallet† Such a hardware wallet is also called a cold wallet.
Cold wallets offer the highest possible security compared to all other possible types of wallets. Hardware wallets do not temporarily store the connected private key on the PC. This prevents hackers or malicious software programs from stealing the key.
Hardware wallets are still safe to use even if a PC is infected with spy software or something† However, that much security comes with a price tag. Cold wallets are therefore a lot more expensive than other alternatives.
But what happens if the hardware wallet itself is stolen or lost, or maybe breaks down? This is not a problem as long as a backup code has been created. With this code, users can easily restore the Btcoin wallet.
Especially for those who already have a large amount of Bitcoins in their account or plan to invest heavily in it in the future, the cold wallet is the best choice.
What should also be taken into account when purchasing hardware wallets is the fact that every wallet must also have a display. Screens offer much more security, because the data is shown on your own screen and not on the screen the computer.
The best-known providers of hardware wallets are Ledger, KeepKey and Trezor.
Ledger Nano S
If you absolutely want solid quality at an affordable price, the Ledger Nano S is the way to go.
As one of the top Bitcoin security companies, the name Ledger is synonymous with security. The device contains a screen and is available from 95 euros.
Trezor is one of the very first companies in the hardware wallet market, offering its products since 2014.
With the Trezor One, it offers an extremely compact design with simple operation, which is in no way inferior to hot wallets.
KeepKey was launched in 2015 and is also a device with an integrated screen.
It offers PIN protection against unauthorized use, adjustable transaction speeds and unlimited wallet addresses.
Paper wallets are part of an (almost) extinct wallet department. Its keys have been printed out.
We only mention the existence of these paper wallets for the sake of completeness, but we certainly do not recommend them.
The difference between Bitcoin wallets and Bitcoin banks
The difference between a Bitcoin bank and a Bitcoin wallet is not clear to many users, but there is such a big difference at the security level that it certainly matters in the end.
Scandals have often occurred in the case of Bitcoin banks because users' private keys have been hacked† This has resulted in millions in losses. The problem here is that the private key was not in the user's hand, but was stored temporarily.
Coinbase can be cited as an example of such a bank, even though it is often confused with a wallet.
Which wallet for which investor? The conclusion
The choice of the right wallet depends on the needs of each individual user:
When you plan to make a
However, if you just want to do some trading and mainly use your Bitcoins as a means of payment, the eToro wallet offers a carefree all-round package at friendly prices..
The user-friendliness, the social media component and the higher security standard, compared to most hot wallets, make eToro one of the best providers in the crypto market.
eToro is the best choice:
- Offers the ability to trade with more than 14 types of cryptos
- Only a minimum investment of 50 euros is required
- Accepts PayPal and credit card as payment options, among others
Register with eToro
Step 1. The registration
Registration is simple and secure via Facebook or a Google account. The first name and email address must be entered here† You will also be asked for a secure password.
You will then receive a verification link. Once confirmed, you will have access to your account. Then after just a few clicks you can access the eToro platform.
Step 2. Personal data
In order to act effectively, your personal data, including your financial situation, must be made public. This may put some people off at first, but eToro makes sure that the money is used wisely.
If you absolutely do not want to make your personal data public, you should be satisfied with an investment limit of 2.000 euros.
Step 3. Download the eToro wallet
Anyone who has successfully registered with eToro can now use the wallet. This is available in the Google Play Store for Android or in the App Store for Apple users.
After downloading, the same user details as the main eToro account must be entered in order to start using the wallet.
Step 4. Using the eToro Wallet
After the verification process is completed, all functions of the wallet are immediately available to its user† The available crypto credit is displayed herein, as well as the trading history.
Not only the eToro app, but also the associated wallet is characterized by great user-friendliness, something that is especially beneficial for beginners.
If you wish, you can also use the free demo account first† Here you can extensively examine and test various functions of eToro before you start trading with your own money.
Finally, there is a small warning: it does not matter which supplier you prefer or which type of wallet you want. Only invest the amount of money you have immediately available and what you could afford to lose. Bitcoins are quite volatile and can therefore fall in value. Anyone who chooses digital currencies should be aware of this.