“Cryptocurrency”, still an unravelled mystery amongst the major population of the world. Some people believe it to be the source of huge profits while some consider it is a suspicious currency which has the potential to drive away funds. Nevertheless, the currency has lured the people who are looking for a complementary asset to produce huge profits. As the fiat needs a wallet to secure our notes, similarly digital currency also requires the bitcoin wallets to protect the digital codes. Let’s find out how these wallets work and which are top bitcoin wallets of 2020 are considered best in recent times.
Introduction To Bitcoin
Digital currency which is cryptographically encrypted was technically founded back in the early 1980s but first used publicly in 2009 when Satoshi Nakamoto (pseudonymous founder of Bitcoin) released Bitcoin among a group of enthusiastic supporters. Bitcoin synonymously used for the cryptocurrency is now used as a public means of transaction which is backed by complex algorithms. It is decentralised in nature and maintains the public ledger on blockchain technology.
Do you want to buy this unusual profit-making digital assets? Are you puzzled about storing the coins in the first place or thinking about whether you even need to store the digital currencies? Even though cryptocurrencies are not having any physical equivalent, their associated digital codes need to be stored.
What are Bitcoin Wallets?
Bitcoin wallets, what do they actually store? Wallet acts as the vault which does not actually hold the digital coins but the keys which enable you to do the transactions with the coins. Basically “private keys” which are high-level cryptographed codes and enable users to access the cryptocurrency in their crypto wallets, it works similarly as the password of an email id. Bitcoin wallet seems to be complex at first go but needs to be understood clearly before investing in digital assets.
How Does The Wallet work?
Before moving further, it must be cleared that how the bitcoin wallet works? Every bitcoin wallet has a unique address (like a bank account number) in the form of uppercase and lowercase (which does not reveal the identity of the wallet holder).
Each wallet whether it is top bitcoin wallets of 2020 or not, has its exclusive private and public key. Highly encrypted private key works like the password which enables the users to access the funds of the particular wallet address. And the public key is the mathematical function (hashed version) which is linked to the address of the bitcoin wallet which adds one more layer of security and safeguards the wallet from hacking. Both the keys are auto-generated, from which private keys need to be protected by us and not be shared with anyone. Thus, a crypto wallet having the public address is a protocol that generates both private and public keys, is essential to access the funds in the real world.
After the confusing technical stuff, I would like to explain about the wallets in day to day terms. Just like you swipe your credit or debit card after any purchase, you enter your pin to authenticate your transaction and transfer the money to another account. Similarly, by using your private key, you verify that you own the coins and wanted to transfer to another account.
In recent times if you google which crypto wallet you need to employ to store your keys, thousands of options will pop up in the list. Choosing from plenty of options would be difficult if you are not completely aware of the pros and cons of the particular wallet. But, just like I helped you in understanding the necessity and working of crypto wallets, I would try to provide a detailed comparison of top bitcoin wallets of 2020 to secure your money with utmost seriousness.
There are broadly two main kinds of wallets:
1.Hot Wallet or Online crypto wallet: It is any cryptocurrency wallet which is linked to the internet.
- Quick Accessibility
- Prone to cybercrimes
- Vulnerable to technical glitches
2.Cold wallet or Offline crypto wallet: It is an offline hardware wallet.
- Highly Secured
- Not prone to cyber hackers
- Difficult accessibility
Top Bitcoin Wallets Of 2020
After the technical categorisation, let move forward to the actual theme of the article that which are the top bitcoin wallets of 2020 available in the present date.
Blockchain wallet (Don’t get confused with blockchain technology!).
- Multicurrency online wallet
- Accessible in 35 countries
- Cannot buy crypto coins directly with fiat currency
- Prone to cyber attacks
- A software-based wallet that stores codes in the application
- Facilitates highly secured encryption of keys
- Lacks two-way authentication causing a security issue
- Allows storage and transfer of digital tokens
- Shows the real-time value of assets through live charts
- Best for spontaneous desktop use
- Works on mobile application
- Lacks desktop interface
- Ensures “Bank-grade security”
- Security is boosted due to integration of Trezor
- The hot wallet which is prone to cyber crimes
- Multipurpose wallet, allows users to buy, sell and store codes
- Works with only four major currencies
- Accessible in 23 Countries
- Multiple payment methods
- Two-way authentication
- Higher transaction fees
- Lacks anonymity
- Hardware wallet which only stores codes
- 100% cold storage
- High level of security due to its offline nature
- Prone to firmware attacks
Also Read: What is the Easiest Way to Buy Cryptocurrency?.
There is an ever-growing list of wallets. So, the choice of a bitcoin wallet depends on the need of a user whether he wants wallet for everyday purchases or just wants to hold investments; want multiple or single currency platforms, and require the accessibility from everywhere or from a single point only!!! The needs of a person decide the choice of wallet.
It can be concluded that as the digital movement is popularising the adoption of cryptocurrency, the need for securing the private keys are also pacing up. But the top bitcoin wallets of 2020 are completely secured? Complete security is never an achievable task, so while using the bitcoin wallet, precautions need to be taken like securing the password, maintaining the online security as well as using multiple wallets to secure your codes.
So don’t hesitate to invest in the trending crypto coins. But be aware of the scammers and fraudsters who are keeping an eye on your bitcoins.