Bitcoin is back to making all-time highs every other day, and this kind of price behavior kept it on the front pages of online media for months now. With increased exposure, naturally, came new investors and traders, all seeking out this new opportunity to earn. However, earning from Bitcoin price volatility is one thing — keeping the coins safe is quite another. When it comes to Bitcoin, you cannot just place it in a bank and call it a day. No, the best way to keep your Bitcoin safe is to put it inside a Bitcoin wallet, which you will protect with a strong, complex password.
But, even that is not as simple as it sounds, as you first need to select a wallet that is good enough, with as many features and functionalities as possible. Doing so is not difficult, but identifying the right wallet can be.
So, if you are thinking about finding adequate storage for your coins, maybe we can assist by presenting you with our own list of the best Bitcoin wallets in 2021. We promise to keep this short and sweet, with all the main features listed, which will, hopefully, help you make a decision about which wallet to start using for keeping your crypto earnings safe.
Best Bitcoin wallets 2021
As we started looking into what Bitcoin wallets are strong and safe enough, we came across several excellent candidates that made the cut. You can review each of these with us, and then make a decision about which one to use. They are all highly reputable and very reliable, and can keep your coins safe from online dangers, as you are waiting for the price to move favorably.
Our list consists of five wallets:
So, with our list in place, let’s take a closer look at what these wallets have to offer.
The first on our list is eToro, which many users treat as a go-to wallet for Bitcoin, and a one-stop-shop, at that. The wallet is regulated by security regulators, and it doesn’t only allow you to store Bitcoin, but also to buy it directly, without having to switch to a different platform.
eToro itself is a great choice of a broker if you might be in the market for one, as it allows you to trade Bitcoin commission-free. In other words, you don’t have to pay a fee for every single transaction that you make, which is a feature that has attracted quite a lot of crypto users, especially since Bitcoin fees tend to be quite high due to scalability issues.
When we are talking about storage itself, eToro lets you store over 120 different cryptos apart from Bitcoin, so you can also use it if you wish to diversify your portfolio. There are more than 500 crypto trading pairs, which is great if you wish to exchange your Bitcoins for some other crypto asset on the spot.
And, best of all, you are not only tied to its web version — you can download its app for Android and iOS, and even trade on the go. Just remember to always take care when doing so, especially if you have to access it on public WiFi. It is best to use it in combination with some other security technology, such as VPN, as public hotspots are a common hunting ground for hackers and other malicious entities.
But, if you enjoy using it on your PC, you will find that the eToro wallet also supports Windows, macOS, and Linux, so you are completely free to choose the method that you find most appropriate.
- A highly-reputable wallet with excellent security
- Trusted by more than a dozen million users
- It lets you buy or trade Bitcoin within the wallet itself
- All Bitcoin trades are completely free of fees
- You can deposit money with cards, bank transfers, or e-wallet services
- eToro lets you invest as little as $25
- The wallet is fully regulated
- It has a withdrawal fee of $5
- The only fiat currency is USD
Binance Trust wallet
Next up, we have Binance. Now, Binance needs no introduction — it is the world’s largest crypto exchange by trading volume, and one of the best places to trade not just Bitcoin, but also a massive number of altcoins. As a reputable and trusted exchange, you can expect Binance’s crypto wallet to enjoy the same reputation, and so far — it has not let us down.
Binance’s Trust wallet allows you to download it as a mobile app on Android and iOS, and it has over 5 million users at the time of writing. It is rich with various tools and functionalities, which makes it a decent choice for experienced Bitcoin fans.
The wallet is fully decentralized, which means that you get to hold and control your private keys, which is the safest way to own cryptocurrencies. If you are not too concerned about holding your keys yourself, and you trust Binance to do it for you — you can keep your coins in the exchange’s integrated wallet, and not use Trust wallet, which comes as a separate app.
But, if you want to handle your own security, then Trust wallet is the one to go for. If you choose this solution, not even Binance will have access to your funds. Meanwhile, you will still be able to buy, sell, and trade your coins from within the wallet. This makes for a highly convenient way to manage your cryptocurrencies, which is why several top wallets have added this possibility — Binance included.
And, as mentioned, just like Binance is a great place for Bitcoin as well as numerous altcoins — so is its Trust Wallet compatible with over 40 different open-source blockchain protocols. As a result, it supports thousands of coins, so if there is a crypto you have developed an interest in apart from Bitcoin — chances are that you will be able to store it quite safely within Binance’s platform.
Trust wallet pros:
- Belongs to the world’s largest and most popular exchange
- Supports thousands of cryptocurrencies
- Low trading commission (0.1%)
- Great for advanced traders and investors
- Top reputation
- Excellent security
- It lets you transfer money via card or through bank transfers
Trust wallet cons:
- It charges 2% on deposits made with debit and credit cards
- It can be overwhelming for beginners due to all the functionalities it has to offer
Then, there is Coinbase Wallet — a wallet belonging to one of the largest crypto exchanges in the world, and the biggest exchange in the US. Coinbase is just as popular and reputable as Binance, although some would say that it is much more beginner-friendly. The same can be said for its wallet, which is among the perfect solutions if you just arrived to the crypto world and are still ‘learning the ropes.’
One downside to using Coinbase, however, is that the exchange and its services can be a bit costly. For example, buying and selling Bitcoin will come at a 1.49% fee. If you opt to buy Bitcoin via debit card, the fee goes up even higher, to 3,99%. But, we placed Coinbase’s wallet on the list despite these high costs because you don’t have to use it for actual trading or Bitcoin purchases. You can simply use it to store your coins, as the wallet is extremely safe and easy to use.
You can access the wallet’s web version — meaning through your browser and Coinbase’s website, or you can download an app for both, Android and iOS. Just like before, this means that you get to trade on the go if you so desire, and the wallet will serve you perfectly on your phone or tablet. That allows you a great opportunity, as you never know where you will be or what you will be doing once the opportunity to buy or sell Bitcoins arises. When it does, your coins will be one short transaction away, safe in your Coinbase wallet.
In terms of security, you get everything that you might expect — two-factor authentication, a withdrawal time-lock, email confirmation when you try to access your Bitcoins from unrecognized IP addresses, and more. All of this will help if someone else attempts to access your wallet, so you will have time to react while the exchange is stalling the attacker.
Now, apart from Bitcoin, the exchange does not support a lot of other coins. There are Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin. However, since it does support the Ethereum ecosystem, that means that you will also be able to store any ERC20 token, as well. This is great if you are interested in using the coins from the DeFi sector, but our focus today is on BTC, and BTC is definitely supported, so that is all that matters.
- A highly reputable wallet offered by a highly reputable exchange
- Extremely beginner-friendly
- Lets you deposit funds via debit card or bank transfer
- It has mobile apps for Android and iOS
- You can withdraw coins to another wallet
- You can use it as a standalone wallet and not trade withing it if the fees are too much
- High deposit fees if you use a debit card
- 49% trading fee that is applied on every single trade
Unlike our previous entries, Electrum is not a crypto wallet offered by an exchange or a broker, but a standalone wallet app. However, that doesn’t mean that it is not an excellent choice. In fact, Electrum is one of the first Bitcoin wallets that has been around for 10 years now. It emerged back in 2011 — only two years after Bitcoin itself was created, and it has been incredibly consistent since then.
Another thing to note here is that Electrum is a Bitcoin wallet in the full sense of the statement, meaning that it ONLY supports Bitcoin. You cannot store any altcoin in it, not even Ethereum. Also, while it is not extremely complicated to use, using it does require some level of familiarity with how crypto transactions work. It has a bit more complex options, so it might be best to skip this one if you are a beginner.
Other than that, the wallet is open-source, so you can be sure that there is no shady business regarding its code; it allows users to set up custom transaction fees, and it lets you choose between Segwit and legacy Bitcoin. You can even control its security, so you can boost it up to very high levels if you feel like it. What this means is that it can work as a standard wallet, or one with 2FA, or even as a multi-signature solution. You can even expand its original seed phrase by adding custom words, and the wallet will recognize the change.
- Old and reputable Bitcoin wallet
- Lets you choose level of security on your own
- You get to customize seed phrase
- You can customize transaction fees
- An excellent choice for keeping Bitcoin safe
- Great for advanced users
- Only supports Bitcoin
- Not beginner-friendly
- Bare-bones UI
- Lacks customer support
Different types of Bitcoin wallets
Now that you know which wallets to go for, let’s discuss what kinds of Bitcoin wallets are there, and what wallets are in the first place.
As mentioned, wallets are safe storages for cryptocurrency. They come in different types, and can be split into two main categories: Online (hot) wallets, and Offline (cold) wallets.
Once you divide them like that, online wallets can include:
- Web wallets
- Desktop wallets
- Mobile wallets
While offline wallets — also known as cold storages — can include:
- Hardware wallets
- Paper wallets
Online wallets are considered riskier to use than offline ones, because having constant access to the internet gives hackers an opportunity to hack them. With that said, desktop and mobile wallets can be considered a middle ground between hot and cold wallets, as you can switch between the two modes simply by enabling or disabling their internet connection.
Online wallets are certainly more convenient, as you have your coins standing at the ready at all times, and you can even trade on the go. Hardware wallets, on the other hand, are less convenient as you need to plug them into a computer to use them, but they are offline and no one can steal your coins without first obtaining the physical device.
Using a Bitcoin wallet is necessary to keep your Bitcoins safe. Some people choose to leave their coins in the exchanges’ integrated wallets, but this is generally not the safest option, as exchanges do get hacked, and if one suffers such an incident, a lot of people can lose a lot of money.
Exchanges will likely ensure that their clients get the money they lost back, but it can take months, or even years before this happens. It is better and simpler to have your own wallet and keep your money safe on your own, and with a bit of self-education, you can learn all the necessary details about how to boost security enough for your money to be as safe as it can be.
Are Bitcoin wallets expensive?
Bitcoin wallets are free to use, unless you go for the safest version — the hardware wallet. In that case, you have to pay for the device itself.
Are Bitcoin wallets safe?
The security of most wallets depends on you. The wallet is only safe if you protect it with a strong enough password/passphrase, and be careful not to share your private keys anywhere.
Are exchange wallets safe to use?
Exchanges offer integrated wallets where you can store the coins that you currently use for trading. Other than that, it is better to have a separate wallet app that will let you hold your private keys yourself. That way, only you have access to your funds, and they will remain available even if the exchange crashes or malfunctions in some other way.
Can I have more than one wallet?
Absolutely. You can have as many wallets as you wish, and transfer funds between them, and even spread your wealth so that no single wallet holds all of your money. Just make sure to carefully store and not forget your passwords and private keys, since losing them would mean losing access to your funds forever.