Your bitcoin wallet is a holding pen for your digital assets so it’s important to choose wisely to ensure security and ease of access.
There are multiple options out there, all with their own features and functionality.
For beginner traders, it’s advisable to trade through a reputable broker, such as Coinbase, and use the wallet they provide. If you’re looking to choose your own wallet, though, you’ll need to decide which type is right for you.
Wallets are described as either hot or cold:
- Hot wallets are connected to the internet and subsequently open to hackers
- Cold wallets store your assets offline and are generally considered more secure
If you want instant access and are only holding a small amount of bitcoin, a hot wallet should suffice so long as you double-check the reputation of the provider. When holding bitcoin of high value, it’s best to opt for a cold wallet.
Ideally, you would utilise both, keeping a limited amount readily available, with the bulk of your funds kept safely offline.