We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.
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.
The Best Bitcoin Wallets of 2022
- Best for Beginners: Exodus
- Best for Advanced Bitcoin Users: Electrum
- Best for Mobile Users: Mycelium
- Best Hardware Wallet: Ledger Nano X
- Best for Security: Trezor Model T
- Best Bang For Your Buck: Ledger Nano S
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 for Beginners : Exodus
We picked Exodus as best for beginners because it is free and has good customer support and optional support for cold storage.
Huge variety of cryptocurrencies
Built-in exchange
Good customer support
Closed source software
Exodus now offers FTX integration, Exodus Bitcoin Lightning, and NFT integration. You can learn more about these product additions by reading our full Exodus review.
Exodus is a desktop and mobile wallet with a very simple 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 150 different cryptocurrencies.
With its simplicity, this wallet is great for beginners just getting into the crypto space. It also has great 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 an 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
We chose Electrum because is it secure, open-source, and offers advanced features and options.
Customizable transaction fees
Greater level of security than most hot wallets
Bare-bones user interface
Only works for Bitcoin
No formal customer support, only documentation and community
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 2-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
We chose Mycelium for mobile users because it gives you more control over transaction fees and integrates with a hardware wallet.
Customizable transaction fees
Ability to use hardware wallets
Open-source software
Mobile only
Confusing for a first-time user
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.
Best Hardware Wallet : Ledger Nano X
We picked the Ledger Nano X because it offers secure cold storage and connects to devices with Bluetooth or USB through the Ledger desktop or mobile app.
Ledger Live has an intuitive and convenient user interface
Storage for between 3 and 20 different apps
Open-source software with added benefit of customer and community support
Convenience of Bluetooth connectivity
Bluetooth integration a potential vector of cyber attack (USB is still an option)
Bluetooth feature not perfected
Limited wallet storage
In July 2020, Ledger experienced serious hacks that revealed detailed customer information, including names, phone numbers, email addresses, and even home addresses in some cases. Though this does not affect people's private keys, it has led many to question the integrity of Ledger's internal security measures.
The Ledger Nano X is the second generation hardware wallet from Ledger, a French company launched in 2014. Ledger’s first cryptocurrency product, the Ledger Nano S, was one of the first hardware wallets on the market and dominated the space for a number of years.
The Nano X resembles a USB drive and connects to your device via USB or Bluetooth. This means that you can connect the wallet to your iOS or Android device without needing a computer. It supports over 1,800 cryptocurrencies. This list grows each year 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 1 USB-C to USB-A cable so that it can be connected to either a desktop computer or a smartphone if preferred over Bluetooth.
Best for Security : Trezor Model T
We chose Trezor as best for security because it comes with the strongest security features and track record of any reviewed hardware wallet.
Web-based user interface with exchanges built-in
Massive list of supported cryptocurrencies
Open-source software with added benefit of customer and community support
Higher price point than others
Small touchscreen for typing
Confusing for a first-time user
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 $195.
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 Type-C cable so that you can connect to either your smartphone or desktop computer. Currently, the Trezor Model T supports more than 1,800 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 Bang For Your Buck : Ledger Nano S
We picked the Ledger Nano S because it offers an affordable entry point into cold storage hardware wallets.
Access to Ledger Live
Secure storage for a low price
Open-source software with added benefit of customer and community support
Max storage of three apps
No wireless Bluetooth feature
The Ledger Nano S is the first generation hardware wallet introduced by Ledger, one of the first hardware wallets ever made. Like the Nano S is compatible with 1800+ cryptocurrencies. The Nano S does not come with a USB Type-C cable, so users with more modern smartphones may have trouble connecting to their devices.
The Nano S is essentially the same as its successor, the Nano X, minus a couple of features. Both support the same list of cryptos and have access to the Ledger Live software. Unlike the Nano X, Nano S lacks Bluetooth connectivity, and it only stores up to three apps versus the 100 that can be simultaneously stored with Nano X.
The Nano S only has enough storage to make wallets for a limited number of cryptocurrencies at a time. If you were to delete an app to add another type of cryptocurrency, their online guide says it will not affect your assets.
The deleted wallet, and crypto within it, can still be seen in Ledger Live, but the wallet will not be seen on the Ledger device itself. This means that if you would like to send or receive to the wallet you have deleted, you may have to delete another wallet to make more room.
That said, at just $59, the Ledger Nano S is a fantastic wallet for those looking to store their cryptocurrency safely for a fair price. It is also quite easy to use with Ledger Live, making it an ideal product for a beginner looking for safe and simple storage for a handful of cryptocurrencies.
Read the full Ledger Nano S review.
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 |
---|---|---|---|---|
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 |
Ledger Nano X
Best Hardware Wallet |
Cold | $119 | Yes | Yes |
Trezor Model T
Best for a Security |
Cold | $195 | Yes | Yes |
Ledger Nano S
Best Bang for Your Buck |
Cold | $59 | Yes | Yes |
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 that 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.
Often, when people refer to a Bitcoin wallet, they refer to a crypto exchange that offers a wallet as part of their account features. In this sense, the wallet is just where all of your cryptocurrencies are kept or where you can keep fiat money for future use.
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. Your wallet can safely keep as much Bitcoin as you’d like without any limit.
How Much Does a Bitcoin Wallet Cost?
Using a Bitcoin wallet doesn’t cost you anything if you’re just storing Bitcoin in the wallet. However, if you’re completing a transaction, then 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. Purchasing a wallet could cost you anywhere from $0 to $200 or more. 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 that 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.