As a virtual currency, BTC does not have a physical form or any central point of control. It is the network where all crypto transactions take place. However, due to the absence of a bank vault, you need a secure digital wallet where you can store BTC.
A crypto wallet or a BTC wallet allows you to secure your BTC received from unauthorized access. The software contains private and public cryptographic keys that are used to send and receive BTC with other supported actions.
There are two types of crypto wallets:
- Hot wallets: Online wallets that are usually used to hold small amounts of crypto that you may need for immediate use. For example, desktop wallets and mobile wallets are hot wallets.
- Cold wallets: Offline wallets that are used as a secure bank vault to store BTC and other crypto. For example, paper wallets and hardware wallets are cold wallets.
The top hot BTC wallets of this year are:
The mobile-only Trust Wallet is preferred by many due to the ease of use and multi0-currency support for over 160 cryptocrrencies. It is the official hot crypto wallet of Binance. The HD wallet uses a seed backup feature that allows easy restoration in case you lose your mobile device.
It also offers a Web3 browser through which you can access many decentralized apps without leaving the wallet. You can import BTCs and altcoins from paper wallets by using your private keys. No email verifications or credentials are required to use Trust Wallet, which makes it ideal for beginners.
Guarda is a Web, desktop, and mobile wallet which is open-source and available as an extension of chrome. It supports many popular altcoins. The free crypto wallet is gaining traction recently for staking, trading, and custom fees features.
Guarda web wallet provides the traders with the capability to connect to the ledger hardware wallet. The best part of this wallet is that it comes with security measures like multi-signature capabilities and encrypted private keys. However, it will charge you extra fees if you want to purchase crypto assets on the platform.
Mycelium is one of the oldest mobile-only BTC wallets that are available for both iOS and Android. It offers support for a few currencies apart from BTC, like ETH and ER-20 tokens. The built-in exchange makes it easy to purchase and sell from within the app.
This wallet provides the benefits of QR-code-based payments and you can have full control over your private keys. It is open source and you are allowed to set custom fees. However, this one may not be the best choice for beginners as the user interface is not easy to figure out for beginners.
Exodus is a desktop and mobile wallet that is available for free. It is ideal for beginners with its intuitive design and multi-currency support of over 115 crypto. It offers a built-in exchange for trading that is compatible with iOS, Linux, Mac, Android, and Trezor. You can link your desktop and mobile wallets.
Custom fees are offered for BTC only. So, there are chances that you may have to pay higher fees for other crypto like Ethereum. It does not require any identity verification, registration, multi-signatures, or two-factor authentication. This hot wallet is recommended for beginners who deal with small amounts of crypto on a daily basis.
Electrum is one of the first BTC wallets. It came into existence in 2011. The wallet is available for Linux, Mac OSX, Windows, and Android. It is exclusively for BTC. The standard BTC wallet needs one-key verification.
Up to 15 authentication keys are allowed by the multi-signature wallet. The ‘Preview wallet’ is a unique wallet type that only allows deposits, viewing transactions, and balances, but it does not allow withdrawals. Electrum also offers paper wallets. It supports hardware wallets like Ledger, Trezor, and KeepKey.
The bottom line
Although digital assets are safer in a cold wallet, the importance of hot wallets cannot be denied. If you receive, send, or trade crypto regularly, hot BTC wallets are what you need. To avoid risks, make sure to use your hot wallets for small amounts of BTCs and altcoins, encrypt your wallets, and keep your private keys safe.