One of the things that many Bitcoin owners ask themselves today is which among the available wallets is the best for them. The truth of the matter, however, is that no wallet can suit all needs and therefore it is important to establish and maintain one that will fit you best. In doing this, there are some considerations that must be made.
Security is the key
For any wallet, one of the most paramount things is security. It is not advisable to use online wallets that such as Blockchain.info which control your private keys. This is because they are often the victims of hackers, which exposes you to theft. A better alternative is using downloadable wallets and apps in spite of the fact that they may need regular updates. It is also important to establish if the wallet encrypts your data and some form of verification such as requesting for passwords.
Prioritize on the storage of your security keys
The bottom line is that you should at all times hold your own security keys. This is based on the fact that whoever holsters is the owner of the Bitcoins. Despite the convenience that may be gained by letting someone else hold them, it is an unwise move. Regardless how trustworthy someone may seem to be, it is not advisable to surrender the security keys to them.
This is one of chemist recent and indeed effective Bitcoin security measures. With it, the owners of Bitcoin can be able to secure heir coins by requiring the authorization of more than one party for any transaction. These different keys can be held by different entities and in different locations. This method is however most effective for a wallet that is not accessed regularly.
Just like the wallet company request for your information, you should do the same to them. This will help out establish whoever they are open source and how they operate. In doing this, you will be able to transact with full knowledge of their operations.
Make use of HD wallets
One of the best ways to secure your Bitcoin is by using the Hierarchical Deterministic wallets which allocate one with a new public address each time they receive funds. This keeps you anonymous and effectively protects your Bitcoin.
Regulate the amount of information you give out
Due to compliance rules, wallet companies are asking for more and more of their client’s personal information. Thus has the downside in that it exposes tour identity and puts you at risk. It is therefore important to strike the right balance by regulating the amount of information you give out.
Know the local regulations
The legal and financial definitions of Bitcoin vary from one place to another. It is important to identify what they entail for your specific location or country. It is also important worth noting whether the wallet company is permitted to operate in the given location so as to avoid confiscation.
You should go for a wallet company that offers you a wallet this not only secure but that US also user friendly. This means that the ease of use will enable you to efficiently navigate through it and conduct all transactions.
Provision of backup
The availability of backup facility is a necessity if you are looking for a good Bitcoin wallet. This is because it’s essential especially in the event of emergency or loss of data. These should also be customizable in a manner that suits your specific needs and requirements.
It is important to identify the wallet provider with the best reputation by inquiring from fellow users and forums. However, it should be noted that older wallets are more susceptible to hacking as they have more users or newer systems, go for those which are endorsed by trusted individuals.
- To get a detailed analysis of different wallets, read our wallet reviews.
In conclusion, it is worth mentioning that recent survey ranked the best wallet providers. Lesser known names such as Armory and Open Bitcoin took the top spots at the expense of the more popular ones like Coinbase.
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