Topic: Wallet for storing Bitcoin - page 2. (Read 228 times)

Software wallets for Bitcoin are all free so you don't have to invest anything in them, and using something like Electrum or Wasabi wallet with offline computer would be a good start for cold storage.
I would only recommend using open source wallets that are tested  and always verify if you are downloading them from official website with correct signature.
Cold wallets are used for storing keys for larger amount of coins, and hot wallets can be used for pocket money and smaller payments.

If you want to invest and buy some hardware wallet, check out my list of Open Source Hardware Wallets and Secure Element in Hardware Wallets.
Remember that you are not storing coins on your device but just your keys, so it's important to make good backup for seed words and store them in safe place on paper or metal plate.
Prices for hardware wallets start from $40 but I would stay away from any that is closed source, and I would consider Trezor One wallet (with passphrase), BitBox02 or Keystone wallet, and avoid buying Ledger Nano X (many issues with battery, firmware, etc)

In the vast majority of cases you'll want to either use Bitcoin core or Electrum depending on your needs. Both of these can operate as a hot wallet or cold wallet. However, the difference between the two is one of them (Bitcoin core) downloads the full Blockchain, and therefore can be time consuming to setup, and is only really beneficial to those that want to run a Bitcoin node. Whereas, Electrum doesn't require you to download the whole Blockchain, and can be setup relatively quickly.

As for the benefits of a cold wallet compared to a hot wallet, well the main factor is the cold wallet won't ever be connected to the internet, at least until you decide to withdraw or transfer Bitcoin. Therefore, you're limiting your attack vector to local attacks. So, you're significantly reducing the chance of your Bitcoin being compromised. Though, most people want to send Bitcoin frequently, and if that's the case with you then a hardware wallet might be the best option, as it protects you from certain attack vectors, and is generally considered safer than traditional wallets due to the additional security measures in place.

In short, I'd only recommend the following:

If you want to run a node: Bitcoin Core
If you don't want to run a node or have limitations (bandwidth / storage): Electrum
If you want to access your Bitcoin frequently, but want to prevent certain attack vectors: Trezor hardware wallet.

Hey guys,

I was thinking of investing in a crypto wallet for storing my Bitcoin; can anyone suggest if a cold wallet or a hot wallet will be a better choice and why? Will be great if some verified wallet brands can be shared..