Safest bitcoin online wallet

We delve into the security provided, features, along with benefits and drawbacks of each.

Ledger Nano S

Hardware Wallet

Hardware wallets are the most secure option when it comes to storing Bitcoin. The major hardware wallet providers are Ledger, Trezor, and KeepKey. Ledger Nano S has support for the widest number of cryptocurrencies. Hardware wallets leverage the benefits of both cold and hot storage. Cold storage is when funds are secured offline and represents a greater level of security.

Hot storage is when funds are connected to the internet and enables the user to send transactions. The wallet can send transactions and check the account by being inputted into a computer and connecting to a Chrome-based app. The private key for the wallet is stored on the device itself so that the wallet is secure even if it is used on a compromised device.

Ledger Nano S comes in a sealed package so that users know if the device has been tampered with. There is a clear recovery process when users are setting up the device. If the user loses their device or it gets stolen, the recovery seed can be easily used on another device to recover the funds.

When users want to send transactions or monitor their account balance, they can easily connect their device to the computer and access an interface Ledger provides, through its Chrome application. Users can generate their addresses or a QR code to receive transactions.

There are also mobile wallets which support importing Ledger Nano S. This means that users can generate a watch-only wallet where they can monitor changes in the wallet and also receive transactions via a QR code on their mobile. Users will still have to plug their device in to send transactions.

Trezor

Hardware Wallet

Trezor is another leading hardware wallet and the longest operating out of the three leaders. The Trezor hardware wallet which was developed by SatoshiLabs was initially released in 2014. The private key for the wallet is stored on the device itself making it highly secure. Trezor applies a high level of encryption to secure funds stored in the wallet. Even if the device is used on a compromised computer, sensitive details will not be leaked due to this encryption.

The Trezor wallet arrives in a sealed package. Users can know if the package has been tampered with based on if the seal is broken or not. Clear set-up instructions are provided in the package which makes the set-up process straightforward for beginners.

It is important to take careful note of the recovery seed provided and the instructions will also emphasize this. This can be used to recover funds in the event that the device is lost or stolen. If the device is stolen, no-one will be able to access it due to the high level of encryption. It is important to carefully store the recovery seed as if it is accessed by someone else, they will be able to access the funds on another device.

Trezor also has extra applications and features. The Trezor password manager applies the high level of encryption of the Trezor device to manage passwords so they are protected. Overall, hardware wallets such as Trezor and Ledger Nano S are the best option for users who take their security seriously. They require an initial investment but when users hold a significant amount of cryptocurrencies, it’s worth securing them.

Trezor has two different models. The initial Trezor Model One was the device released in 2014. In 2017, Trezor released the Model T. The key difference with the newer model is that it has a colour touchscreen and no buttons.

Mycelium

Mobile Wallet

Mycelium is a highly regarded mobile wallet which focuses solely on Bitcoin. Users can use it to secure, send, and receive Bitcoin easily through their phone as is the case with most wallets. Users can easilysend and receive transactions and also generate a QR code to receive transactions. The private key is stored by Mycelium but advanced encryption is applied making it accessible to only the wallet user.

The high level of security along with potential integrations is what makes Mycelium stand above competitors. The wallet is hierarchical deterministic which enables users of the wallet to generate multiple public and private key pairs.