First time crypto users have the hardest task finding the right digital currency wallet. That’s because there are so many options available. Although all digital wallets are known as hot wallets, cold wallets offer interesting alternatives.
This post will shed some light on the differences between online and offline storage solutions. As well as how to find the best free Bitcoin wallet for your needs.
Your Coinbase Wallet
Every Coinbase account gets a unique address from which they can trade cryptocurrencies. But this isn’t a traditional crypto wallet like those you can download on your PC or mobile device.
Whenever you trade on Coinbase you’re essentially selling or buying crypto to and from Coinbase. Think of the platform as the crypto equivalent of a traditional bank.
That said, the “wallet” is free as creating an account costs nothing. Why is it one of the best? Because Coinbase is one of the largest and most trusted crypto exchanges in the world. It’s accessible from many countries and allows supplementing the account with a variety of fiat currencies.
Furthermore, trading crypto from your Coinbase wallet is very simple. It’s also fast and allows you to trade crypto for crypto and fiat for crypto. The withdrawal fees are also acceptable, should you want to withdraw your assets to a personal wallet.
It may not be the most secure place to store your assets. That’s because Coinbase, as an exchange, is a prime target for hackers. Yet so far the platform shows much resilience and excellent security.
The Free Cold Storage Wallet
What’s the cheapest and most secure Bitcoin wallet? A paper wallet is the best free Bitcoin wallet you can use. If you’re a first-time crypto user you may want to wait a while before you get a paper wallet.
However, if you already know how Bitcoin transactions work, this is the only guaranteed unhackable storage option.
What’s a paper wallet you ask? It’s a piece of paper where you write down your Bitcoin address and public and private keys. Basically, the information you need to send crypto to other users and authenticate any transactions.
How do you make one? You either have a thorough understanding of the blockchain technology and use maths to generate your own address.
The easier alternative is downloading a Bitcoin wallet generator. Such programs can be installed on your computer and mobile device. You can then take your system offline as the generator doesn’t need an internet connection to work.
It uses specific algorithms in order to generate a valid address, that will be recognised on the blockchain. As well as private and public keys that are required to authenticate and verify transactions.
Some generators can even connect to printers and print cool-looking paper wallets. But you can just as easily write down the strings of characters on paper yourself.
The “Official” Bitcoin Wallet
The mobile wallet from Bitcoin.com is a very interesting alternative. It offers a good mix of security and convenience. It’s available on Android and iOS devices and comes free of charge.
Some regard it as the official Bitcoin wallet. That said, this is now a multi digital currency wallet that allows you to only trade Bitcoin and Bitcoin Cash. Granted, other crypto coins aren’t represented.
But if all you want is to trade Bitcoin, this is it. Note that you also benefit from seeing live price charts for both Bitcoin and the hard-fork coin Bitcoin Cash (BCH).
What’s great about it is that you can use the app to buy your first crypto assets. You won’t have to go to an exchange to do so and lose more money in fees on each transaction. Buying from exchanges is also an option, of course.
Its functions include – trading, selling, buying, sending, and spending Bitcoin. This wallet isn’t just free but also one of the fastest.
The Decision Is Yours
Whether you decide on cold storage or hot storage for your crypto assets is up to you. There’s no denying the increased security and privacy of using a cold wallet such as a DIY paper wallet.
However, if you want to be an active crypto trader, you’ll need a digital currency wallet as well. That’s the only type of wallet from which you can make trades and easily pay merchants in Bitcoin, and other cryptos.