Topic: Types of wallets. Which one's the best? (Read 256 times)

Yep, wallet security is paramount. A lot of the horror stories you hear in the crypto-space revolve around security measures that weren't up to par.  

That said, the main types of wallets and what makes them unique:

Web-wallets (exchanges): easiest to use, most convenient in accessing your coins but most vulnerable for attack. With the web wallets your private keys, and essentially your coins, are not yours since the app or site are the one's truly holding them.

Desktop wallets: a step up from webwallets, they provide a level of convenience but ultimately in terms of security they are only as safe as the computer you're using. Some of these provide cold storage solutions though which is good. Electrum is a very popular software(desktop) wallet.

Hardware (external) wallets: Inherent cold storage solutions, as they always hold your coins offline (until you're ready to make a transaction) thus making them the most secure from potential malware. These are always a good option for storing large amounts of coins.

There's paper wallet options as well, which really just means having a printed copy of your private key on paper. This is regarded as highly secure as well since it's in your custody...just don't lose it. Ultimately why not have a couple? The perfect wallet combination depends on the person and managing them all is a skill that takes some time. Hardware is great for holding currency, but if you're trading, you'll also need something a little more convenient.

Cheers!

Ledger supports more coins than Trezor. But ledger, at one time, can support only 4 coins instead with Trezor you can access to all the coins it supports

So if you have coins that Trezor doesn't support,it will be better to buy Ledger

Coins supported by Trezor: https://doc.satoshilabs.com/trezor-faq/overview.html

Coins supported by Ledger Nano S : https://support.ledgerwallet.com/hc/en-us/articles/115005304449-Check-the-list-of-cryptocurrencies-and-tokens-supported-by-Ledger-here

Hey guys.

If I were to buy Trezor or Ledger Nano S. Which one should I pick? Which one is better?

If we are talking about security, trezor, nano ledger s, and the likes are the best wallet to use if it is for holding since it is  very securebut they can't be classified as the most convenient wallet to use when one is doing transactions daily in his wallet. If it is for daily usage, I recommend desktop wallets as they have more security than web wallet and also security wise althiugh they are less secure than hardware wallets.

I personally think a paper wallet is the safest as long as you generate it offline and securely. Next safest is a hardware wallet (such as Leger Nano or Trevor) which also requires that you set it up securely and protect your pass phrase.

The least secure wallets are the ones where you don’t control the private keys yourself. I personally have some coins on paper wallets, some on a Ledger Nano S, and a little on an exchange.

At the moment i think security wise, For Android, Samurai is awesome, you can get it here: https://play.google.com/store/apps/details?id=com.samourai.wallet&hl=en

Other then this one, you can get Ledger and Trezor. But you have to wait for them to be in stock(dont buy them from reselers).

Webwallets are arguably the worst ones. -- You are dependant on their service & sites, and with most of them it is really hard to access your private keys ( blockchain.info), plus you're missing alot of functionality, RBF/ CPFP / etc.

Desktop wallets such as bitcoin core and Electrum both provide full security ( in terms of access to keys etc, ) and full functionality. Although if your PC is ratted/infected, i wouldn't be so sure how safe they would be in that case. I believe that there shouldn't really be a problem if you have strong encryption, but don't quote me on that..

External wallets ( Trezor/Ledger nano S),  people usually say these are the safest, and the best, due to them  being encrypted and very movable ( like a USB-stick, you can take them anywhere you go!). I'm not sure if Nano/Trezor offer the same functionality as bitcoin core / electrum though.

Basically, there are two kinds of wallet:
1. Hot Wallet
2. Cold Wallet

1. Hot Wallet:
                    A Hot Wallet is a wallet that is connected to the internet, and is used for day-to-day transactions. They are mostly used to store smaller amounts of Bitcoin as they are not too secure. Web wallets, Mobile Wallets, and Desktop Wallets are Hot Wallets as they are connected to internet and are used for usual transactions.

2. Cold Wallet:
                     A Cold Wallet is a wallet that has no internet access, and is used for storing Bitcoins for long-term. They are more secure as they need no internet access and are safe from phishing or any other kind of attacks. Hardware Wallets, Paper Wallets and sometimes Desktop Wallets (if not connected to internet) are used as Cold Wallets, to store Bitcoins for a longer time.

Now, each one of them has their own advantages and disadvantages. Like, Web Wallets has the disadvantage of Phishing or hacking attacks, and they often don't give you access to your Private Keys. Sometimes a wallet even can be a scam and run away with the Bitcoins of people. Advantage of Web Wallets is that they are user-friendly and fast too.
On the other side, Desktop wallets has no such disadvantages, but there are fears of keyloggers and other similar attacks. Their advantage is that they are safe from Internet attacks (Phishing, hacking), and the private keys are stored in your PC.
Paper and Hardware wallets can be lost, in such a situation, you will lose all your funds store in any of them, but they have the advantage that they are totally safe from attacks of any kind, meaning you are totally safe as long as you have them to yourself.

That is a small explanation of wallets. I hope I made them quite clear for you.

There are around 10+ ways to store Bitcoins but I believe that storing funds in the offline manner is the best option in terms of security but one should always keep in mind that he is the sole person responsible for his actions. I am fan of paper wallet and Trezor wallet when it comes to the offline holding.

* 12 Ways To Store Bitcoins Review - Hardware, Desktop, Mobile, Online & Paper Wallets?

This article might help you to understand the 12 ways to hold Bitcoins and take your decision.

I don't see this link (below) yet, it's an abbreviated list of wallets segmented by the way you want to access it. It's a beginner's resource, but a good starting point for anybody. Please note that it's not an exhaustive list and it's focused on Bitcoin wallets.


Things to consider as you go through your search: Bitcoin - Choose Your Wallet

you can read some more thread [General] Bitcoin Wallets - Which, what, why? (it seems you've known this in your other thread)
or if you prefer wiki style explanations, I posted in another thread awhile ago (quoted below)
if you still have questions or unclear on some info on these reading materials
then ask it here... we are a friendly community for newbies wanting to learn (but not for merit whiners who care only about ranking up for signature campaign)