A very common question from new and current bitcoin owners alike is “What bitcoin wallet is best?” The answers to this are as varied as the needs and functionality desired of each user. One size does not fit all, and this article will cover the necessary steps that need to be considered when creating and maintaining a bitcoin wallet.
Basic security measures
Start with the basics. Do you want to use a popular online wallet like Blockchain.info, which controls your private keys? This increases the potential for you to fall prey to a mass hacker. More people use Blockchain.info than any other wallet, with millions of accounts already created, but they have not proven immune to hacking of these wallets.
Or do you want to use a downloadable wallet or app that may need periodic updating, but may provide more security in exchange for some convenience from an online ready wallet?
Check to see if the wallet offers its own internal data encryption measures and two-factor authorization, like requiring a password and a separate code for access that can be kept online or offline, or can be emailed to you upon entry.
Where are your private keys?
The holder of the keys is the owner of the bitcoins. Just ask those unfortunate souls who lost their shirts in the Mt. Gox collapse. Holding your own private key is always the best move, no matter how trustworthy someone else may seem. Owning a bitcoin wallet is a constant struggle between convenience and security. Don’t cut corners here. Hold onto your private keys!
One of the many great security innovations Bitcoin has wrought is multi-signature, or multi-sig, which didn’t exist before a couple of years ago. It is most practical for long-term, offline storage applications and requires more
Originally appeared at: http://cointelegraph.com/news/114881/10-steps-to-a-better-bitcoin-wallet