The Best Bitcoin Wallets

Ledger Nano X is our pick for best overall Bitcoin wallet

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Bitcoin has gained widespread acceptance and continues to grow in popularity. Unlike stocks at a stock brokerage, you can withdraw your cryptocurrencies from a crypto exchange and store them in an outside wallet. The best Bitcoin wallets make it easy (and maybe a little fun) to securely store and manage your crypto portfolio.

If you’re looking to buy and store Bitcoin or other cryptocurrencies, you may be on the hunt for the best Bitcoin wallet. We looked at a long list of Bitcoin wallets focusing on cost, user experience, supported cryptocurrencies, and other features. Keep reading for a look at some of the best Bitcoin wallets available today.

Best Bitcoin Wallets of 2023

While all leading cryptocurrency wallets provide a high level of security for safekeeping your crypto assets, improper security practices on behalf of the user can lead to a complete loss of funds. Crypto enthusiasts should take care to store the bulk of their assets meant for trading on exchanges using cold storage methods, and never share your wallet’s login details, recovery phrase, or private keys with anyone.

Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.

Best Overall : Ledger Nano X


Ledger

Key Specs

  • Purchase Cost: $149
  • Cloud Storage: No
  • Cold Storage: Yes
Why We Chose It

We picked Ledger Nano X because it offers secure cold storage and connects to devices with Bluetooth or USB through the Ledger desktop or mobile app.

Pros and Cons
Pros
  • Ledger Live's user interface is intuitive and convenient

  • Support for up to 100 apps

  • Open-source software with added benefit of customer and community support

Cons
  • Bluetooth integration a potential vector of cyber attack (USB-C is still an option)

  • Bluetooth feature not perfected

On Nov. 9, 2022, Charles Guillemet, Ledger's Chief Technology Officer, reported that the company suffered a “few scalability challenges” as crypto investors rushed to offload their holdings from crypto exchanges in response to the FTX crisis.

Overview

The Ledger Nano X is the second generation hardware wallet from Ledger, a French company launched in 2014. The Nano X resembles a USB drive and connects to your device via USB or Bluetooth. This means you can connect the wallet to your iOS or Android device without needing a computer. It supports more than 5,500 cryptocurrencies, and this list grows annually as the Bitcoin community asks for support for their favorite cryptos.

While the device itself is a cold storage hardware wallet, the Ledger team has created the Ledger Live software that provides a user interface for all your holdings. This gives users the ability to add new wallets for different cryptocurrencies to their devices and manage their portfolios.

Ledger hardware wallets have been, and currently are, the most popular in the industry. The Ledger also comes with a USB-C to USB-A cable and can be connected to either a desktop computer or a smartphone if preferred over Bluetooth.

Best for Security : Trezor Model T


Trezor

Key Specs

  • Purchase Cost: $219
  • Cloud Storage: No
  • Cold Storage: Yes
Why We Chose It

We chose Trezor as best for security because it comes with the strongest security features and track record of any reviewed hardware wallet.

Pros and Cons
Pros
  • Web-based user interface with exchanges built-in

  • Support for 1,400+ cryptocurrencies

  • Open-source software

Cons
  • Higher price point than others

  • Small touchscreen for typing

  • Confusing for a first-time user

Overview

Trezor, like Ledger, is a name synonymous with crypto cold wallet storage. Its Model T is the second generation of hardware wallets they have created. The Trezor Model T is very much like the Ledger, but it gives the user the ability to access third-party exchanges, like Changelly and CoinSwitch, directly in its website interface. While this is quite convenient, it hardly justifies its more expensive price tag of $219.

The Model T utilizes a touch screen, which can be easier to use for beginners than the buttons their previous model used. The Trezor also has a MicroSD card slot, allowing you to use MicroSD cards to encrypt the PIN and further protect your device from attacks.

Like the Ledger Nano X, the Trezor Model T also comes with a USB-A to USB-C cable so that you can connect to your desktop computer. You can connect to an Android smartphone with a USB-C to USB-C cable. Currently, the Trezor Model T supports more than 1,400 different cryptocurrencies. Some consider the Model T to be a bit more secure than the Ledger Nano X due to the X’s Bluetooth connectivity (although Ledger's Bluetooth is optional).

Best for Beginners : Exodus


Exodus Logo

Key Specs

  • Purchase Cost: Free
  • Cloud Storage: Yes
  • Cold Storage: Yes
Why We Chose It

We picked Exodus as best for beginners because it's free, has good customer support, and optional support for cold storage.

Pros and Cons
Pros
  • Built-in exchange

  • Good customer support

  • Easy setup process

Cons
  • Closed source software

  • Lacks 2FA security protection


Overview

Exodus is a desktop and mobile wallet with a straightforward user interface and an exchange built-in. One of Exodus’s most popular features is the ability to swap between a growing number of cryptocurrencies. Exodus currently allows for swaps between over 250 different cryptocurrencies. 

With its simplicity, this wallet is great for beginners just getting into crypto. It also has excellent support, an essential feature for beginners getting into what many would consider a confusing market.

While it is great for beginners, more advanced users may find it lacking in some features. First, Exodus is a closed-source wallet. This goes against the ethos of the idea of Bitcoin and blockchain and can create some security concerns as its code is not open for everyone to see. Instead, users rely on the Exodus team to ensure there are no holes in the security of its wallet.

Exodus has the option to set custom fees to keep costs down, in addition to the option of automatically setting a fee that ensures the transaction completes quickly.

Best for Advanced Bitcoin Users : Electrum


Electrum

Key Specs

  • Purchase Cost: Free
  • Cloud Storage: Yes
  • Cold Storage: Yes
Why We Chose It

We chose Electrum because is it secure, open-source, and offers advanced features and options.

Pros and Cons
Pros
  • Customizable transaction fees

  • Greater level of security than most hot wallets

  • Enables the creation of Lightning Network payment channels


Cons
  • Bare-bones user interface

  • Only works for Bitcoin

  • No formal customer support, only documentation and community

Overview

Electrum is one of the original Bitcoin wallets. It has been around since 2011, two years after Bitcoin’s creation, and has changed little since. While this wallet is bare-bones in terms of its user interface and commitment to only Bitcoin, it excels at this primary function. Electrum is also more suited for advanced users due to its complex options.

Electrum is open source, allows its users to set custom transaction fees, and has the option to choose between legacy Bitcoin and Segwit. It also offers users the ability to determine the level of security they wish to use. For example, you can create a standard wallet, one with two-factor authentication, or a multi-signature wallet. You can also elongate your seed phrase with custom words. 

Electrum is perfect for the more advanced Bitcoin holder who wants great security features and customizability, all in a simple layout.

Best for Mobile Users : Mycelium


Mycelium

Key Specs

  • Purchase Cost: Free
  • Cloud Storage: Yes
  • Cold Storage: Yes
Why We Chose It

We chose Mycelium for mobile users because it gives you more control over transaction fees and integrates with a hardware wallet.

Pros and Cons
Pros
  • Customizable transaction fees

  • Ability to use hardware wallets

  • Open-source software

Cons
  • Mobile only

  • Confusing for a first-time user

  • Thin customer support


Overview

Mycelium is an open-source and mobile-only Bitcoin wallet. Mycelium currently only supports Bitcoin, ETH, and ERC-20 tokens. In some ways, Mycelium is quite similar to the Electrum wallet. Some of the differences are that it is mobile-only, has a more refreshed user interface than Electrum, and has a built-in exchange.

Mycelium, like Electrum, is one of the earlier wallets in the space. Also, like Electrum, you can set custom transaction fees so you can choose how long you’re willing to wait for a transaction to be completed.

Mycelium also has a few more interesting features, such as hardware wallet support, allowing users to hold their Bitcoin in an offline storage device while still using Mycelium’s user interface to see their holdings.

Final Verdict

With many Bitcoin wallets to choose from, including a piece of paper with your public and private keys printed on it, you have a lot of options when finding the best Bitcoin wallet. Whether you want an easy-to-use online wallet or a super-secure hardware wallet, there’s a good option for your crypto storage needs.

Compare the Best Bitcoin Wallets

Company  Type of Wallet Purchase Cost Incorporated Exchange Compatible Hardware
Ledger Nano X Best Overall Cold $149 Yes Yes
Trezor Model T Best for a Security Cold $219 Yes  Yes
Exodus Best for Beginners Hot Free Yes Yes
Electrum Best for Advanced Bitcoin Users Hot Free No Yes
Mycelium Best for Mobile Users Hot Free Yes Yes

Frequently Asked Questions

What Is a Bitcoin Wallet?

A Bitcoin wallet is a place that stores your digital Bitcoin and validates your transactions when you’re using your Bitcoin. A wallet keeps secret information, called a private key or a seed, used to validate transactions and “sign” them so your Bitcoin can be used to make purchases or exchange for another asset. This prevents someone else from using your Bitcoin or the transaction being altered by a third party.

How Does a Bitcoin Wallet Work?

A blockchain is a shared public ledger where all Bitcoin transactions are conducted from Bitcoin wallets. When a transaction occurs, there is a transfer of value between more than one Bitcoin wallet. Typically, a single party is exchanging some value of Bitcoin for another asset or service with another Bitcoin wallet. When this occurs, every individual Bitcoin wallet will use its secret data to sign and validate transactions, providing mathematical proof that the buyer or seller is the owner of their Bitcoin wallet

How Much Does a Bitcoin Wallet Cost?

Purchasing a Bitcoin wallet could cost you anywhere from $0 to $200 or more. Using a wallet doesn’t cost you anything if you’re just storing Bitcoin in the wallet. If you’re completing a transaction, the owner of the exchange or device that is housing your wallet will charge you various fees depending on what you’re trying to do. If you’re using a wallet as part of an exchange, you’ll likely pay either a flat fee of a few dollars or a percentage of the total transaction value.

How Do You Cash Out Your Bitcoin Wallet?

You can’t convert Bitcoin to cash directly whenever you feel like it, but you can sell your Bitcoin anonymously on the blockchain in exchange for the fiat currency you desire. A crypto exchange can handle the transaction on your behalf and find a buyer so you can quickly convert the value of your Bitcoin into the cash you need. Every wallet has different rules and time periods for transferring your fiat currency over to your bank account, but most can be done in one to three days after the Bitcoin sale is complete.

Methodology

We looked at more than a dozen Bitcoin wallets worldwide and decided on the top hot and cold wallets based on factors such as security, costs, and customer reviews. Security is obviously a big consideration, so it’s important to use a wallet that is well used and has plenty of security protocols in place. It’s also important to choose a wallet that works well with some of the larger exchanges so that you can quickly complete transactions in the open market.

Bit Coin

GettyImages/DisobeyArt

Article Sources
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  2. Ledger. "The Company."

  3. Ledger. "Nano X."

  4. Ledger. "Ledger Live."

  5. Trezor Blog. "You Won’t Need To Look for an Exchange Anymore. It Is in Your Trezor Wallet."

  6. Trezor. "Encrypt PIN With MicroSD card."

  7. Exodus. "Exodus Bitcoin and Crypto Wallet."

  8. Exodus. "What Are the Benefits of Swapping Crypto in Exodus vs. Centralized Exchanges?"

  9. Exodus. "Exodus Support."

  10. Exodus. "Is Exodus Open Source?"

  11. Exodus. "How Do I Set Ethereum and ERC20 Custom Transaction Fees?"

  12. Electrum. "Frequently Asked Questions."

  13. Electrum. "Electrum Bitcoin Wallet."

  14. Electrum. "About."

  15. Electrum. "Version Bytes for BIP32 Extended Public and Private Keys."

  16. Electrum. "Two Factor Authentication."

  17. Electrum. "Frequently Asked Questions."

  18. Mycelium. "Mycelium Bitcoin Wallet."