Choosing A Bitcoin Wallet: Key Points To Keep In Mind

Choosing how to store your crypto is a personal decision, so do your research and make your own decision. Each user should consider the following four key factors when choosing a wallet:

• Security
• Convenience
• Compatibility
• Control

Security

Cryptography storage requires security as its most fundamental requirement. Select a method that protects your keys and is less likely to allow your funds to be stolen, and you’ll be able to rest assured that your funds are safe.

Verify that the company holding your funds is reputable before using a custodial wallet. In this case, you are fully responsible for safeguarding your crypto if you opt for a hardware wallet.

DYOR (do your own research) is always a good rule of thumb. You should look for a trustworthy exchange with experienced security teams, proven track records of keeping user funds safe, and evidence of healthy financial reserves.

For more information on securing your crypto, we also recommend checking out our comprehensive Academy guide.

Convenience

It might be less suitable for an inexperienced user who isn’t familiar with holding their own private key, or for a day trader who needs instant access to their funds.

Custodial wallets are ideal if you want convenience. Non-custodial wallets may not be suitable for users of Web2, as they are more familiar with this method.

As long as you remember your username and password, you’ll always be able to access your account. In addition, make sure your two-factor authentication (2FA) isn’t lost if you have it enabled – a well-recommended security setting.

Compatibility

In this era of cryptocurrencies, you should make sure that your Bitcoin wallet is compatible with the coins you own or wish to trade and that it supports deposits and withdrawals.

Control

When choosing a crypto wallet, you should also consider how much control the wallet has over your funds. Private keys are held by some storage options, such as hardware- or software-based wallets, while others, such as crypto exchanges, hold them for you.

You should choose a method where you hold your private keys if you are comfortable managing your own crypto funds. Using a trusted exchange will give you more convenience and accessibility.

Manage Your Crypto In The Way That Suits You

There is no clear winner when it comes to crypto storage. The strengths and weaknesses of every wallet type are different. In some cases, it is more convenient and convenient to use, whereas in others, it is less vulnerable to hacker attacks and scammers. Which wallet type is best for you depends on your needs.