Bitcoin has grown up more as an investment option in the recent time due to its increasing popularity and a reasonable stability. The thing that makes holding bitcoin a great option is their volatility, the prices can vary within seconds and your can earn some decent profits by exploiting the situation.
But to start holding bitcoin after buying them, you’ll need a bitcoin wallet. There are many wallets out there but we recommend only choosing the best bitcoin wallet. But how can one differentiate between a good and a bad bitcoin wallet? Here are some tips that can help you in this regard.
What Security Options Does It have?
Security of a bitcoin wallet is its selling point and the single most important feature. Checking for the security of a bitcoin wallet is easy. If the wallet us web based, it must have HTTPS instead of HTTP, because HTTPS is a much securer option. Additionally, the wallet must have other security option too like secure login and 2 factor authentication to keep the security level high.
Do You Really Own Your Bitcoin:
Another thing to see in a bitcoin wallet before selecting it is if they let you access your bitcoin keys saved in the wallet. You must have access to those keys, because if you do not have access to those keys, you don’t have access to your bitcoin.
Another benefit of have access to the security keys of your bitcoins is that you can move them in and out of your bitcoin wallet at any time. This way you can also backup your bitcoin keys outside of the wallet.
Always choose a wallet that promotes the use of new bitcoin addresses every time you make a transaction. This type of wallets are called HD wallets, and their transaction security level is much higher. Making every transaction from a new address every time makes it hard for hackers to trace back to your wallet and attack your computer.
Always choose a wallet whose owners are well known to the world and are open about their wallet and how it actually works. Choose a wallet whose code is open source. Because every person can test an open source code and look for vulnerabilities in its code. You wallet owners should also keep the source code updated to eliminate any possible vulnerabilities.
Anonymity shouldn’t be looked at as a feature, rather it’s your personal choice. Some people like to register with their IDs and other personal details to increase the security level and recovery chances of their bitcoin wallet, while others are searching for wallet who requires only your email for complete registration.
How Easy It Is To Use?
Before selecting a bitcoin wallet, access your exact needs and choose a wallet accordingly. For example, if you’re going to use the wallet mostly on your mobile device, than choosing a wallet with a well built mobile app id your best bet. You can also download the full wallets on your PC for an extensive use.