The importance of safe and convenient storage of BTC is difficult to overestimate, so this article will be entirely devoted to wallets for bitcoin. Bitcoin can be stored in two ways: on your computer, laptop, smartphone, or a third-party online wallet. In the first case, the keys for accessing the funds are usually stored locally on the computer. In the second, you are often forced to completely entrust the storage of your funds to a third-party service. However, recent developments based on the HD wallet allow you to do without permanently storing your keys anywhere at all.
It’s safest to keep your coins on your own, without outside help. But online services also have their advantages – for example, easy access to funds, which requires only a browser, and many additional services. So what choice do we have?
Wallets stored on your computer
These wallets require you to download and install an app on your computer. The key file is stored locally (except for HD wallet-based wallets), and all security settings must be made by yourself. This type of wallet can be divided into two subspecies: “thick” and “thin”. Thick requires downloading the entire chain of blocks and constantly downloading new blocks. Thin (aka light) wallets do not require downloading the entire history of blocks, and take all the necessary data from third-party services. This is convenient when, for example, the wallet is used on a mobile device. But in this case, security in the use of bitcoins is reduced, because you will have to trust these third-party services. Let’s go in order.
Fat Purses.
This coin storage option is the most secure. You control the security of your money. And your client himself downloads all the blocks and checks their authenticity, making sure that indeed each successive block refers to the previous one. The keys are stored only with you, so be sure to make a timely backup of the key file.
Bitcoin Core
(Windows, Linux, Mac OS)
The original client, based on a development by Bitcoin founder Satoshi Nakamoto and maintained by a group of developers led by Gavin Andresen. If you’re not sure which client to use, it’s best to start there.
The app has a high level of security, confidentiality and stability, and its development is ahead of all other clients, as it is the official Bitcoin client. However, this application is very resource intensive. It is advisable to leave it on all the time, thereby maintaining the Bitcoin system so that other nodes can connect to you. If you have a weak computer, it may be worth looking at other clients for bitcoin management.
Features of the wallet: your bitcoin addresses and private keys are stored in a wallet.dat file. The client offers the option to encrypt the file with a password. The app has a Russian version. Ability to import and export keys, sign messages. And working through the command line allows you to take advantage of additional features of the client that are not implemented in the graphical shell.
Overview of Bitcoin Core version 0.10.0. read here.
Armory
(Windows, MacOS, Linux)
Works on top of Bitcoin Core, extending its functionality. Therefore, in order for it to work, the official Bitcoin Core client with synchronized blocks will need to be installed. If Armory does not find the database files from the blocks when it runs, it will tell you so, indicating that the program should be run with the key
–satoshi-datadir = path
Armory is easy to use, even for beginners. You can manage multiple wallets, improved security. With it, to protect against attacks from the Internet, you can store wallets offline. The addresses generated by VanityGen are easy to import into your wallet.
You can even use Armory to create messages which are signed with your private bitcoin address key so that others can verify that the message came from you.
The Armory Wallet is ideal for power users who require additional flexibility and security in managing their funds.
Please note that Armory will struggle on older computers, and requires at least 2GB of RAM. And even with 2GB of memory, it can run for 10-20 minutes, or even more. There is also no Russian version of the client.
Thin wallets
As already mentioned, the thin client does not require downloading blocks, and all data is taken from the server used by the client. Such wallets are most convenient to install on a laptop or tablet. It’s quick and easy to work with them. But all of the checks are done by a third party, which has a negative impact on security, even though you have the keys in your possession.
MultiBit
(Windows, Linux, Mac OS)
MultiBit is fast and easy to use, even for people with no technical knowledge. He has a channel on YouTube, which helps to get better acquainted with this wallet and its functions. Synchronization with the network is fast enough, usually a few minutes. The app has also been translated into Russian.
The amount of commission is set in the program settings. Before sending, the program displays the data on the transfer (address, amount, commission) for confirmation.
Right now the development of Multibit has been slowed down a little bit because the developers are working on a new product – Multibit HD, which is in the stage of initial testing.
Electrum
(Windows, Linux, Mac OS, Android)
The goal of this app is to make the Bitcoin network as fast as possible and minimize resource consumption. After installation the wallet offers to choose a server to connect to – you can choose from the list or specify your. After that it will generate some secret phrase (seed), which should be either written down or printed as a QR code. There is no need to back up your wallet.
The latest Electrum 2.0.3 offers a new key and address derivation method (BIP32) and support for wallets using BIP32 and P2SH addresses. It is possible to create a multi-signature, and payment requests are processed BIP70. Interoperates with Trezor and Btchip HW1 hardware wallets.
The app can also be installed on Android; read more about easy wallets and installing Electrum 2.0.3 in this article.
Online Wallets
Their advantages are that, firstly, you do not need to download all the blocks of the network, it is time consuming not only when you first download, but also every time you start the local wallet, unless it is constantly on. Secondly, one wallet can be managed from a variety of devices, wherever you are, as long as there is access to the Internet. And thirdly, most of these services provide additional conveniences for their users: notifications, address books, and the ability to make transfers to other users of the service by specifying their e-mail or phone number.
For example, hybrid multicurrency web wallet Coinkite offers its users not only high level of security, but also debit card services and POS terminals.
In any case, you should always keep in mind the significant disadvantage of using any online wallet: your funds are entrusted to someone else’s resource.
You are no longer solely responsible for keeping them safe.. Such a service can be hacked, and then the coins can be stolen. As a result, you can easily lose all the coins that were stored on such a resource, unfortunately, there are examples of this already. Although, if you haven’t yet figured out how to protect your wallet enough to keep it on your computer, then perhaps storing it on a dedicated server might be even safer for you.
You should only use these resources for short-term storage of bitcoins and small amounts, or to learn about the system. The list of such services, their main features can be viewed in this directory of online wallets.
Mobile wallets
Here we give an example of one of the most popular mobile wallets, with other variants of such applications you will learn more in the article about mobile wallets.
Bitcoin Wallet
This is a standalone wallet for Android.
- Provides quick payment via QR code scanning, supports NFC
- Displays amounts of Bitcoin in BTC, mBTC, and µBTC.
- Calculator for converting to local currencies shows your balance not only in BTC, but also in the currency you specify
- Creates an address book of frequently used addresses.
- Possible to pay via Bluetooth, sends system notifications about received coins.
- Has a Russian-language interface.
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In addition to mobile wallets, there are applications for Android with which you can manage bitcoins from your phone, display and read QR codes. However, these apps are not wallets, but only a means of accessing online wallets, such as the app from Blockchain.