What are Bitcoin wallets?
Bitcoin wallets are part of the ABCs in the realm of cryptocurrency. In the simplest terms, Bitcoin wallets are software programs that store your Bitcoins. Bitcoins are not stored in the traditional sense of the word, but rather the virtual data about them is. However, for the sake of simplification, we are going to use this term.
Wallets are essential because they facilitate the process of buying, sending and trading Bitcoins. The ownership of the cryptocurrencies is tied to the ownership of the wallet. Simply put, if you lose your private key, you may also lose the cryptocurrencies stored in it.
In a broader, more technical definition, they are composed out of two elements: the public address so that people can send you Bitcoins, and the private key so you can access the Bitcoins. Each cryptocurrency transaction should have its own public address so you can avoid technical issues and keep safer track of your operations.
- Electronic wallets (software, online and mobile)
- Paper wallets
- Hardware wallets
The most famous Ethereum wallets in Australia
The most famous Ethereum wallets in Australia are:
- Ledger Nano S (hardware)
- TREZOR (hardware)
- KeepKey (hardware)
- Coinbase (web)
- Jaxx (desktop)
- Exodus (desktop)
These wallets are popular among traders because most of them support more than one mainstream cryptocurrency, plus they offer satisfactory levels of protection.
The best electronic Bitcoin wallets in Australia
In this section, we are going to provide you with recommendations on the best electronic Bitcoin wallets in Australia.
- Electrum - Is a software wallet, which means you will have to install the software on your computer in order to use it. You can use it on Windows, Mac OS X, Linux and Android. The best feature is that the Electrum has a recovery process, and you can create a physical “wallet” with a printed set of keys.
- Blockchain.info - Is an online wallet, which keeps your Bitcoins separate from the exchange. The reason why Blockchain.info is on the list, instead of Coinbase, is because it’s safer to store Bitcoins on it. However, you can’t trade directly from the wallet, and some users might consider this as a flaw in the design.
- Exodus - Is also a software, desktop wallet, as Electrum, but the appearance of the application is beautiful. It’s very user-friendly, and it will provide you with elegant charts about every cryptocurrency you own in your portfolio. The ShapeShift exchange feature is also added inside the app. If you are an investment broker or if you have any knowledge of the subject, you are going to love the charts Exodus can provide you with.
- Mycelium - Is a mobile wallet for Bitcoin users. It’s available for iPhone and Android operating systems. It can be a bit complicated for beginners, but once you understand the features of the application, it will be easy to navigate. Mycelium also has an anonymity feature.
Paper crypto wallet
If you are used to fiat currencies (AUD, EUR or USD) and you want a more “tangible” experience, than the paper crypto wallets might be your best option. Alternatively, if you are a beginner in the cryptocurrency world, then you can start out with a paper wallet and then move on to other options. They are very easy to use and more secure then most, and the only problem is that you have to handle them properly because, if you misplace the paper with your private key, you will lose your Bitcoins.
The protocol is fairly straightforward, and you can start by using the blockchain.info website where you can make a safe paper wallet. Once you’re done, the private key is not stored or saved anywhere else, except on a piece of paper that belongs to you, thus the name of the wallet. It’s best to use paper wallets for Bitcoin or Ethereum.
The best hardware wallet - TREZOR Bitcoin wallet
The most common hardware wallet in the world is the TREZOR Bitcoin wallet, even though Ledger Nano S as a newer hardware wallet model is also gaining traction on the market. The TREZOR Bitcoin wallet looks like a USB, and you have to connect it to your device to start trading.
This Bitcoin wallet works with multiple mainstream cryptocurrencies. It’s popular because it’s very safe, as the name implies, and it uses two-factor authentication. There are recovery options, but you should know that it could get complicated and confusing to recover data, so you should keep it safe.