Best Bitcoin and Cryptocurrency Wallets for 2021

The new decade has brought a solid number of Bitcoin and other cryptocurrency users, followed by an increased volume of crypto trading. Hence, choosing the most secure and convenient cryptocurrency wallet is crucial when it comes to safely storing your bitcoins and other cryptocurrencies. As the need for secure and stable storage has grown, we’ve listed the best Bitcoin wallets (and the best cryptocurrency wallets) for the year 2021 below:

→ Exodus — Best wallet overall

→ Electrum — Best Bitcoin-only wallet

→ Keepkey — Most secure cryptocurrency wallet

→ Trezor — Most sophisticated cryptocurrency wallet

Before you read our detailed review for each of the recommended cryptocurrency wallets, let’s first differentiate between wallet apps and hardware wallets.

Wallet Apps vs Hardware Wallets

Wallet apps, also known as hot wallets, seem to be the most convenient solution when you take into consideration the fast pace of modern life. They are further divided into online, mobile, and desktop wallets. Using hot wallets doesn’t really differ much from using any other well-known application. The user signs in with a secret encrypted code (known as the private key) and makes all the transactions online.

Despite the incredible efforts towards improving the wallets’ security measures, the fact that everything is stored online has its risks, which is why hot wallets are not recommended for storing large amounts of Bitcoin and other cryptocurrencies. However, if you are a beginner in need of quick access to your wallet, hot wallets can be the right solution for you. You will have immediate access to your deposits at any time, with multiple back-up options and a user-friendly environment. Examples of hot wallets include Exodus and Electrum.

Hardware wallets, otherwise known as cold wallets, are physical devices, similar to what we know as external drives. In order to access your cryptocurrency, you need to plug the device into your computer (or another online device). The best thing about these types of wallets is that your private key is kept in a secure offline environment, making it virtually impossible for hackers to gain access to it. This is why the security of hardware wallets is incomparable. Examples of cold wallets include KeepKey and Trezor.

The Best of Both Worlds - Pairing Hot and Cold Wallets

If you’re not satisfied with the level of security provided by hot wallets but you also find it too complicated to move your crypto assets back and forth from your hardware wallet to your mobile device or personal computer in order to transact online, why not integrate the two? Thanks to the newest innovations in technology, you can now combine the two wallets for a more seamless trading experience. This way, you can transfer some of your cryptocurrencies offline and leave the rest in your hot wallet for immediate trading.

The Best Cryptocurrency Wallets for 2021

Exodus

Type: Mobile and web app

Price: Free

Accepted cryptocurrencies: Over 120

Compatible hardware wallet: Trezor

Exodus is often the starting point for those recently introduced to the crypto world. Characterized with an amicable interface and exceptionally attractive design, traders can easily send and accept cryptocurrency without experiencing any difficulties in navigation. There is also no need for setting up an account - you are simply given a key that is private and kept on your computer.

It can be additionally integrated with the Trezor hardware wallet for more security and advanced options. Once you pair Exodus with Trezor, your private keys for digital assets are locally stored on the Trezor hardware. Not a single cryptocurrency transaction can be made from an Exodus wallet without manually confirming it on your Trezor device. Therefore, it’ll be impossible for hackers or malicious software to get access to your private keys. Furthermore, users are asked to create a 12-word passphrase at the very beginning, which would help in recovering their wallet balance should they lose their device.

Pros:

• Huge variety of cryptocurrencies
• Excellent customer support
• In-app crypto-to-crypto exchange

Cons:

• It lacks two-factor authentication
• Closed source software

Electrum

Type: Desktop app

Price: Free

Accepted cryptocurrencies: Bitcoin

Compatible hardware wallet: Trezor and Ledger

Electrum is a long-existing, trusted wallet, aimed at more advanced users. It was established in 2011 and since then, hardly anything has changed in terms of its interface and customer support. This is because Electrum is focused on the loyal Bitcoin traders who want to use Bitcoin as a regular payment method. They appreciate its minimal layout, simplicity, and advanced functions. Furthermore, the users don’t have to download the entire blockchain as The Electrum wallet receives blockchain details from a server.

When it comes to security, Electrum is considered one of the safest software wallets. It offers two-factor authentication and an encrypted file that keeps your private key protected with a password. Plus, private keys and user details are never shared with the server. However, it cannot be compared to the protection hardware wallets provide.

Pros:

• Adaptable transaction fees
• Supports multi-signature wallet use
• A higher level of security compared to other hot wallets

Cons:

• Not suitable for beginners

KeepKey

Type: Hardware wallet

Price: $50 - $80

Accepted cryptocurrencies: Bitcoin

Compatible hardware wallet: 35

KeepKey was launched in 2015 by a subsidiary of Shapeshift. It’s claimed to have higher security measures over its competitors, Trezor and Ledger (both hardware cryptocurrency wallets). Moreover, KeepKey features a superior design and a larger screen, which significantly contributes to improving its user-experience. It works great with all the major operating systems and can be integrated with the third-party wallet MyEtherWallet. In addition to storing your key offline, the KeepKey wallet uses number randomization for the purposes of preventing hackers from using malware to get to your cryptocurrencies.

Pros:

• Impeccable security
• Integration with ShapeShift for simple currency conversions

Cons:

• A narrow range of accepted cryptocurrencies

Trezor

Type: Hardware wallet

Price: $55 - $170

Accepted cryptocurrencies: over 1600

Trezor is a physical device that stores cryptocurrencies offline. It can be plugged into both computers and smartphones via a USB cable. It works on a pin-entry principle. In order to avoid password hacking, the keywords shown on the screen scramble every time a pin is typed. The models vary from a basic-level Trezor One to the latest Model T. The latter provides direct access to third-party exchanges on its website, something that experienced users find quite convenient. Generally, Trezor devices have multi-factor authentication whereas Model T offers additional features including a better screen and quality interface.

Pros:

• Quality user interface
• Unlimited cryptocurrency wallet storage
• Great customer support

Cons:

• Not suitable for beginners
• Too pricey for retail traders

How to Use a Cryptocurrency Wallet?

Cryptocurrency wallets behave as actual wallets. Similar to keeping dollars or pounds in your physical wallet, Bitcoin and other cryptocurrencies are stored in your digital one. The cryptocurrency wallets listed above differ in what they have to offer: some of them allow their users to buy and sell digital assets within integrated platforms, while others are used only for storage. Before you decide on a wallet, carefully read their terms of service, as well as our brief reviews in order to make the right choice.

Choosing the Best Cryptocurrency Wallet

Besides the type of cryptocurrency wallet and its security level, other factors you need to consider before committing are the cryptocurrencies it accepts apart from Bitcoin, the type of customer support it offers, and how user-intuitive the wallet is. That being said, the most important thing is how well you’ll be able to use and manage the wallet of your choice.

We hope this article will help you choose the most suitable cryptocurrency wallet for your Bitcoin buying and selling needs on MyBTC.ca.