In this article, we will cover or talk about the 4 most used Bitcoin wallets currently, also different with a focus on practical considerations for a new encryption user. Before getting to wallet recommendations, there are a few basic things you should know about Bitcoin wallets so that you can make the best decision for your situation.
What are these wallets?
Bitcoin wallets do not store bitcoins per se. It is a common mistake to think that wallets store coins, just like a folder on your hard drive stores files. What wallets actually store (and generate) are private keys. These privileges are necessary to transfer BTC from one Bitcoin address to another. All BTCs are actually stored at addresses on the blockchain, which means that their currencies exist on every computer and device that runs Bitcoin.
Does cloud storage of your coins sound a bit insecure? Don’t worry.Only you can spend your coins because only your wallet has the corresponding private key, and no, mathematically it is not possible for anyone to reverse engineer your privkey if they know its address. That trapdoor feature is one of the cool crypto tricks that make cryptocurrency possible.
Of course, if your wallet is malicious or vulnerable, or your private key is exposed in some way, then all bets are canceled … That is why security should be your main consideration when choosing and using a wallet.
Most used Bitcoin wallets today:
1- Bitcoin Core:
Bitcoin Core is the evolution of the first crypto wallet, launched by Satoshi Nakomoto in 2009.It is the most widely used top four wallet we have, and it is often managed by miners, Bitcoin and Lightning node operators, and everyday users. Bitcoin Core has a very deep feature set, as most of the features and optimizations of the software wallet are introduced to the crypto space within Core. For this reason, many other Bitcoin and altcoin clients routinely copy and adapt Core code to their own projects.
Bitcoin Core is considered today the reference client or software standard for Bitcoin. For that reason, updates or changes made to the Bitcoin Core code always tend to decide the direction of Bitcoin as a whole.
We believe it is safe to assume that Bitcoin Core is the most secure and reliable wallet. Here are some of our reasons for making such a statement:
Core has by far the majority of developers working on it, including most current and past developers known for their work with Bitcoin. Core also has the largest number of developers considered leading experts in the field of cryptocurrency. More (talented) developers writing the code tend to mean better code.
As the most popular and de facto defining Bitcoin client, the Core code attracts the most attention and scrutiny. The more eyes review the code, the more likely it is that problems will be discovered and fixed.
The Bitcoin Core team has proven to have a clear conservative approach to making changes.. Any proposed update must run a test and discussion group before being implemented. There is great reputation and financial value in Core’s stability, so no aspect of its development is left to chance.
As the first and most popular Bitcoin wallet, Core has been around for the longest time and has had the most use, making it the most “battle-tested”. Such real-world tests are really important, as developers cannot possibly test every conceivable combination of user action, software environment, hardware configuration, network conditions, etc.
Electrum is a lightweight wallet with a comprehensive feature set. Although we have yet to test the mobile version, we can confirm that the software version has all the transactional and other features that a normal user is likely to require. These include:
currency control: select which directions to spend (mitigate the address link),
Replace by Fee: Resend transactions that are not confirmed on time with a higher fee,
multiple accounts: different sets of addresses to support various purposes, and Address Verification / Signature: Sign or cryptographically verify an address message.
Another really cool Electrum feature is that it allows you to run your own server, through a full ElectrumX node. By configuring your Electrum lightweight wallet to connect to your own ElectrumX server, you can enjoy all the trust and privacy of a full node with the low hardware requirements of a lightweight wallet. This combination is a great option for security conscious mobile wallet users.
Exodus is unique among our recommendations, as it is a multiple wallet, which means it supports multiple cryptocurrencies. Currently, the Exodus software version allows Bitcoins and 103 altcoins and the mobile version allows 34 altcoins. Both versions also include all major alternative currencies such as Ethereum, XRP, Litecoin, BCH, USDT, etc.
Exodus makes it easy to manage a multi-crypto wallet in one wallet. It presents a great design work, with a clear differentiation between currencies. Exodus also presents a useful tab that shows us the current balance of our portfolio, as well as the current market details of all its components. Exodus even contains its own single currency exchange, allowing you to instantly buy Bitcoin for any Exodus altcoin, or vice versa.
A downside to Exodus is that, unlike the other wallets featured in this article, its code is not completely open source. This means the following and that is that you must trust your financial information and monetary security to the honesty and competence of the Exodus project. However, you can mitigate any risk of coin loss by using Exodus only in combination with a Trezor hardware wallet.
4- Zap Wallet:
Bitcoin’s Lightning Network is really starting to go up, with Shopify adding Lightning support late last month. With hundreds of ways to use instant and almost free Lightning transactions and many more coming soon, there has never been a better time to step up and grab a Lightning wallet than right now.
Lightning wallets are still brand new and are undergoing rapid evolution day by day.. As such, there is still no single non-custodial wallet that runs on all platforms. However, Zap is currently closer to this ideal. With an elegant and intuitive design, Zap is available for PC and Apple devices.
This custodial Lightning wallet should suit the needs of most of the people, but if you are an Android user then we recommend Bitcoin Lightning Wallet which is one of the oldest Lightning wallets (and therefore presumably , more proven) or Satoshi’s wallet, which is designed for maximum simplicity and even includes an option to buy Bitcoin instantly.
Disclaimer: Financescity only offer legal, financial or investment advice, but it is not a substitute for the due diligence of each interested party. Financescity does not endorse any of the initial coin offerings (ICOs) promoted here. The content and links provided in each article are for informational purposes only.