Times keep evolving, and so do our lifestyles, habits, and preferences. Some couple years back, the “smart investors” were those making a killing on Wall Street trading stocks or those taking a shot at real estate. And then came the cryptocurrency wave. Now we have a whole new breed of Bitcoin traders; some of whom have already made a fortune by successfully predicting crypto market highs and lows and knowing when to buy or sell.
However, this is not a game for the faint-hearted because to start with, you would need to be tech-savvy to maneuver your way through the halls of crypto trading. One of the most important decisions you will need to make is choosing a reliable Bitcoin wallet to hold your valuable Bitcoins. With ever-increasing cases of cyberattacks and tons of Bitcoins lost through hacking, one cannot help but wonder how to go about the process of picking the perfect wallet to store your Bitcoins? The first tip would be checking whether the site has an SSL certificate installed.
Below we look at crucial factors to consider when choosing a Bitcoin wallet for your coins:
1. Type of Wallet
Just like there are many types of physical wallets to store your dollars, euros, pounds or yen, so there are different types of Bitcoin wallets. The main classification is cold wallets and hot wallets. Cold wallets are a very secure form of storage that are not connected to the internet at all. Such a wallet is not connected to the web, making it safe from significant threats like hacking and malware. They mainly comprise hardware wallets which may be in the form of a USB drive, for instance.
On the other hand, hot wallets are connected to the internet and are ideal for quick trading. However, the internet connectivity of hot wallets makes them susceptible to internet evils like hacking and malware. So, it would be best if you didn’t store a lot of Bitcoin in them or for extended periods. If you plan to save up your Bitcoin for extended periods or large amounts, use cold wallets.
2. Security
Cybersecurity seems to be the primary concern of the 21st century. Hardly a month goes by without a significant hack storming the headlines. Bitcoin appears to be the hackers’ golden egg because they jump on it at any chance they get. When choosing a Bitcoin wallet, be sure to check their security protocols first. For instance, their website should be encrypted using a high-quality SSL Certificate to ensure that unauthorized users cannot access sensitive information.
Some Bitcoin wallets have extra security layers like Two-factor authentication where a one-time pin will be sent to your phone for instance when you are trying to sign-in on the site. Other advanced security protocols include multi-signature settings where several signatories are required before transactions like a transfer or withdrawal can go through. If you are using a hardware wallet, check online reviews for how other users evaluate the security and do not just follow the manufacturer’s word blindly.
3. Compatibility and Ease of Use
Your Bitcoin wallet will be storing one of your most treasured assets, and as such, it needs to have a simplified user experience to enable you to transact with ease. Fast loading speeds, for instance, will allow you to access your portfolio and process your transactions in real-time. In contrast, compatibility with different operating systems and devices will see you enjoy a smooth time regardless of your gadget or OS.
4. Control of Private Keys
Regardless of what some expert, friend, or family member might tell you, always go for a Bitcoin wallet where you own and control your private keys. Like the famous saying goes among Bitcoin enthusiasts, “not your keys not your coin”. It is easy to get drawn into joining web wallets and inbuilt wallets of centralized exchanges where you cannot control your private keys. However, should something go wrong in such platforms, all your Bitcoin is lost. Always own and control your private keys and protect them with all you have so that they don’t fall into the wrong hands.
5. Customer Support Service
One of the most important aspects to consider while working with any platform, especially where your hard-earned money is involved is their customer support service. Human-made systems are also prone to flaws. However, it is how we respond to these hitches that deems us trustworthy or not. Try calling or sending an email or ticket to that Bitcoin wallet that you are considering going with and see how long they take to respond. Do they take your concerns to heart and do everything in their power to clarify or fix the issues for you? Adequate customer support is paramount.
6. Transaction Limits
It’s essential to check whether a Bitcoin Wallet has limits set on the number of transactions you can make or the amount of Bitcoin you can store or trade. It would be very depressing if you are a trader for instance and then you are slapped with a limit on a day when fortune is smiling at you.
7. Customer Reviews
Word of mouth is a potent weapon in the world of business. If you want to check the authenticity of a Bitcoin wallet, head to the customer reviews/testimonials section of their website and see what others think. Don’t just stop there, visit communities like Bitcoin Forum and Bitcoin Reddit, and see other users’ experience with the platform. Where there is smoke, there is fire, and if many people vote for or against the forum, that should guide you on the course of action to take.
Parting Shot
Bitcoin is, without doubt, one of the remarkable wonders of our time. Some people have smiled at the bank when Bitcoin prices have hit an all-time high while others have lost money to fraud and following misinformed advice. Whether you are just the enthusiast who follows Bitcoin news from the sidelines, or you are that determined trader that wants to hit the lotto in this sector, knowing how to choose the perfect Bitcoin wallet is crucial. Remember that security comes first, and you should always check whether a website has an SSL certificate before proceeding further.
About Carson Derrow
