Bitcoin Wallet

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Bitcoin Wallet comparison: the top Bitcoin Wallet recommendation for secure storage

Cold or hot – a Bitcoin Wallet comparison can help you decide which wallet offers optimal protection. Cold storage is our Bitcoin Wallet recommendation because it offers 100% protection against hacker attacks. In recent years, wallet owners have lost millions of coins through such hostile attacks and since 2019 there have been numerous accesses to unprotected online wallets. Therefore, the Bitcoin Wallet Test clearly shows which digital wallet is actually designed for maximum and user-friendly storage.

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Bitcoin Wallet comparison – the best tips for your selection

Everyone, which comes with Bitcoin or other crypto currencies directly into contact and the Coins would like to act, will have heard perhaps already once of the Krypto Wallet. The digital wallets are responsible for securely storing the coins. There is long not only one Wallet, but equal several variants, so that a comparison of the individual offerers and Wallet solutions is recommended. Coins are not equally secure everywhere, as experience in the Bitcoin Wallet Test shows. Therefore we present the different Wallet solutions more near and show, how the users can administer their Coins in a simple way surely before hacker attacks also on a long-term basis.

COLD AND STORAGE: WHAT IS THAT ACTUALLY?

Time and again, the two terms “cold” and “hot” come up when it comes to Bitcoin’s storage capabilities. But what is actually hidden behind them? Cold storage is all about the offline wallets, which include hardware and paper wallet. Cold storage is referred to because it is not connected to the Internet and therefore prevents direct access by hackers or other malicious attacks. Differently however the hot storage, because here exactly the opposite is the case: The Wallet is on-line connected and therefore it can come with insufficient security by the theft of the Coins.

THE BIGGEST HACKS 201

The fact that the concern about criminal attacks on wallets is not out of the air is shown by the current figures for the largest hacks in 2019. Although there have been numerous attacks on unprotected wallets and theft of millions of dollars in the years before, hackers can still steal coins from some crypto exchanges and their online wallets despite having taken and extended protective measures. In 2019, for example, the South Korean crypto exchange Bithumb was surprised by a hacker attack on the Bithumbs Hot Wallet in which $30 million was stolen as digital coins. The exchange was attacked on June 19, 2019, and registered users were not supposed to notice the effects of the theft in their wallet. The lost coins were reimbursed by the Crypto Exchange and transferred to the users’ wallets. However, this had a massive impact on the Crypto Exchange, as it was one of the six largest in the world before the attack and fell to 10th place afterwards.

COINRAIL ATTACK WITH USD 37.2 MILLION LOSS

The South Korean crypto stock exchange Coinrail was also hit in 2019. Coins worth 37.2 million USD were stolen. The effects were drastic, as Bitcoin lost a total value of around eleven percent immediately after the attack. Whether these fluctuations are directly related to the hack is not yet certain. Due to the attack, the stock exchange first had to close as it was not guaranteed that the original trading volume could be resumed.

BITGRAIL WITH LOSSES OF USD 195 MILLION

Anyone who thinks that the losses caused by the hacking attacks cannot be increased is deceiving. In 2019 the Italian Exchange BitGrail had to experience its personal Waterloo, because 195 million USD were stolen from the nano tokens by the attacks.

COINCHECK: DAMAGE OF USD 534 MILLION

It almost seems as if the hacker attacks of 2019 know no bounds and above all no record in the millions. The Japanese crypto stock exchange Coincheck had to cope with an attack and theft of NEM coins worth the equivalent of USD 534 million in January 2019. Again, the hackers managed to gain access to a Heise Wallet and steal the coins there.

HANDLING THE HACKS AT STOCK EXCHANGES IS NOT ALWAYS FAIR TO THE USERS

As experience shows, the handling of crypto exchanges after such an attack is not always fair to the users. Some of them refund the stolen coins, others only partially or not at all. That is why it is all the more important to use the best Bitcoin Wallet with maximum security when selecting the storage option for the coins. We do not recommend hot storage for this, because as the countless attacks show, hackers were always able to gain access to the online wallets because they were insufficiently secured.

Bitcoin Wallet recommendation: cold storage in practice

Based on our practical experience, we can clearly recommend cold storage, although it is perhaps a little less practical and in some cases subject to a charge. If users are looking for a Bitcoin Wallet German based on offline storage, there are two decisive solutions:

  • Hardware Wallet
  • Paper Wallet

The question arises as to which of these two wallets is particularly suitable. Again, we can make a Bitcoin Wallet recommendation: the Hardware Wallet. Why did it convince in the test? A Hardware Wallet has many advantages:

  • Protection against environmental influences
  • Maximum security from hackers
  • Practical handling
  • Handy format

On the other hand, there is one disadvantage, which we do not find so bad, however, compared to the high security of the coins: the cost. If you decide to use a hardware wallet, you will have to dig into your pocket once and expect a purchase price of between 50 and more than 100 euros. How high the price is exactly, depends on the respective Wallet offerer. With the hardware Wallet above all two substantial offerers at the market worked satisfactorily: Ledger and Trezor. They offer similar Hardware Wallets, which differ only in design and functionality. The users have the advantage that they can administer not only Bitcoin, but still other crypto currencies surely and have thus the maximally to two hackers, which there are at present at all.

PAPER WALLET IN THE APPLICATION

In the Bitcoin Wallet Test we do not forget the Paper Wallet. It also offers high functionality and maximum security. Nevertheless, a piece of paper is much more susceptible to soiling or other damage than the Hardware Wallet. Therefore, the Paper Wallet may not be to everyone’s taste. Compared to the Hardware Wallet, it still has one major advantage: It is available free of charge. Who would like itself to save the cost expenditures with the acquisition of the Bitcoin Wallet German, on-line the generators uses, in order to provide the Paper Wallet, and is then completely comfortably to be printed out.

PAPER WALLET BETTER PROTECT

The Paper Wallet is optimally protected against hackers, but not against environmental influences or other factors. The piece of paper can become illegible due to dirt or other environmental influences, for example, so that the owners no longer have access to the wallet. To avoid this, we recommend that wallet owners keep the piece of paper in a safe place, protected from light. If it is to be carried in the bag, however, a protective foil is advantageous.

WALLET BITCOIN & THE THING WITH THE KEYS/ADDRESSES

no matter which wallet the user chooses: The public and private keys should always be kept as secure as possible. The public key serves as the address for receiving the coins. The private key, on the other hand, is only for wallet owners and provides access to the wallet (similar to a PIN on a current account). Anyone who has your private key (illegally) can gain access to the wallet.

Hot storage Bitcoin Wallet Test

After we have presented our recommendation and explained the cold storage, we now turn to the hot storage. Here the difference is already visible when accessing it: it happens online. The following wallet solutions are available as hot storage options:

  • Desktop Wallet
  • Mobile Wallet
  • Browser-based Wallet

Which hot storage should users choose? It depends on what the wallet owners intend to do with their digital wallet. Those who actually want to manage their wallet on their smartphone or tablet coins can download the mobile wallet for free. It often only takes a few minutes to install the application, but this also requires storage space on the mobile device. The wallet is then accessed exclusively via the smartphone or tablet, using the connection to the Internet. A security risk, as practical experience shows.

DESKTOP WALLET BITCOIN

In addition to the mobile wallet, it is also possible to install a desktop wallet. It works similarly to the mobile wallet, so that users must first download the software. However, since experience shows that there is considerably more memory available on the PC, the desktop wallet can often also download the entire block chain, but this process takes a little longer, especially the first time. The disadvantage here too is the existing connection to the Internet. The wallet owners thus provide hackers with an attack surface to strike at unsecured interfaces and execute an attack on the digital wallet.

WEB-BASED WALLET BITCOIN

With hot storage we do not forget the web-based wallet for Bitcoin. In contrast to the other wallet solutions, however, users do not need to download any software or application for this, but access the wallet via their browser. This is possible for example via PC or directly via smartphone or tablet. However, we would by no means describe this solution as the best Bitcoin Wallet, because here too there is a risk that hackers could gain access to the coins through the Internet connection.

BEST POSSIBLE SECURITY FOR ONLINE WALLETS

There are several ways that wallet owners can additionally secure their online digital wallets. As practical experience shows, it is important to rely primarily on secure networks. Therefore, owners should never access the wallet via public networks (for example in cafés or restaurants), as these networks are often not or insufficiently secured. For further protection, it is advisable to integrate several levels of security, as this makes it much more difficult for hackers to gain access to the wallet. For example, 2-factor authentication can now be integrated in many online wallets. Assigning a secure password also increases protection, although realistically speaking, there is no such thing as 100% protection for an online wallet against hacker attacks.

Save Bitcoin in the wallet – what for?

We already got to know the meaning of the Bitcoin Wallets extensively, now the question arises, why the users actually need the Wallets for themselves. The Wallet is basically used to manage Bitcoin or other coins. The users use them (as with Bitcoin) for example as a means of payment or make profits with them. It is precisely these possible profits that are of interest to more and more investors, because conventional financial instruments, such as overnight money accounts or savings books, no longer offer attractive interest rates.

TRADING COINS ON THE EXCHANGE AS AN OPPORTUNITY

The crypto stock exchange is seen by more and more investors as a real opportunity to generate profits in the crypto market. The art is to buy coins at the lowest possible price and then sell them at a profit. In theory, this is certainly easier than in practice, but with a little practice and a few tips, even less experienced traders can do it. The basic idea is to analyze the prices of Bitcoin and Co. and to look for the best possible entry into the market. If the prices are particularly low, the purchase can be successful in view of a positive price forecast. In return, we recommend that you examine the price for a downward trend and trade it.

CORRECTLY USING DOWNWARD TRENDS WITH BITCOIN

To really see the downward trend, technical analysis is recommended because of its ease of use and accuracy. Traders can use the historical data from the Bitcoin price to look ahead and see whether it will soon reflect similar price developments without much previous knowledge. The technical analysis is based on the assumption that I repeat the trends and patterns in the market at some point and that every trend reverses itself. With this certainty in the back of their minds, traders can act with much more confidence and trade the downtrend; even if they miss a downtrend, they can stay calm and wait for a new interesting development.

EXHAUST THE DOWNWARD TREND

Resourceful investors make particularly good use of the downward trend and do not immediately start with his training. Instead, they wait a little until the downward trend has developed and the price continues to fall. If the trend is about to turn, the ideal time to buy the coins has come, because now the price is actually lowest in the current market situation. If the traders manage to strike before the trend reverses, they even have the chance to sell Bitcoin again promptly and thus make profits in no time. It couldn’t be easier to make profits, could it? However, there is a drawback with technical analysis, because it does not take into account the current market situation. To compensate for this disadvantage, we recommend using fundamental analysis, because it takes into account the current market development.

Taxation of profits on the sale of coins

If we look at the potential profits from trading on the Crypto Exchange, we must also take a look at the tax issues. Whoever trades with Bitcoin and Co. is subject to German tax regulations; at least in theory. While there are clear legal requirements for the tax treatment of securities and other financial instruments, Bitcoin and Co. is different in practice. So far, the Federal Ministry of Finance has issued only a recommendation on how the tax offices can deal with taxes from crypto profits. However, there is no legally binding basis. What is certain, however, is that by no means all transactions in the crypto-market are subject to taxes. Especially those users who keep their coins in the wallet for more than a year can save the taxes.

USE BEST BITCOIN WALLET TO SAVE TAXES

The holding period of the coins in the wallet can of course vary, we know that too. However, if you do it cleverly, you can really take advantage of tax benefits by selling the coins. If the holding period is more than one year, the profits from the sales are completely tax-free. It is therefore important that the coins in a best Bitcoin Wallet are securely managed, because within a year hackers would theoretically have 365 days to try to crack the wallet. That would naturally be annoying, because the dealers would like to sell coins profitably at the end of the holding period and keep the profits at 100 percent.

Use Wallet Bitcoin for profitable lending transactions

The Coins owner has much more possibilities with their wallet than you might think. For example, they can now also profit from the loan transactions with their coins. Here, too, the security of the wallet is absolutely essential, so we recommend the best storage solutions from the Bitcoin Wallet Test.

THE PROFIT OPPORTUNITIES WITH LENDING TRANSACTIONS

The demand for Bitcoin loans is constantly growing. Who already has Coins in its Wallet, can use this trend for itself and lend its Coins. The Trader concept is comparatively simple. Who appears as a borrower, can catch up different offers at the borrowing platforms and borrow the Coins to the desired conditions. The costs for this can of course vary, because each platform and each lender sets up the conditions individually. It is important that I hold the borrowers naturally like with the classical bank credit also, to the repayment agreement, since otherwise the platform under lenders have the possibility of making additional demands valid. Who acts as a lender, makes a certain amount of its Bitcoins available and earns interest thereby. More simply it hardly goes, or? At the end of the lending period the Coins move again into the Wallet of the lender and can be lent again or sold directly profitably at the exchange.

How do I get coins into my wallet as cheaply as possible?

We have seen that Bitcoin and other coins can be used variably to generate profits. How can resourceful investors attack their opportunity without having to invest too much equity? Admittedly, every investor certainly asks himself this question and does not always find the answer. But we have tested and researched a lot and found some interesting possibilities. In the center above all the Bitcoin Faucets are located, which with their assistance have the users actually the chance to receive even free Bitcoin.

SECURE FREE COINS

It sounds a little like Bitcoin fraud or false promises, but in reality it’s actually like this: users can register on so-called faucets and get their coins there for free. Some websites do not even require any effort, but registration with the public wallet address is completely sufficient. Other platforms, on the other hand, incorporate the activities of the users and allow them to take part in surveys, for example. Coins are the reward for this. Surely, users will not become Bitcoin millionaires overnight, but at least they have the chance to get free coins step by step. Only the smallest amounts are spent, so that the users have to bring a little patience and ambition to actually accumulate a sum in the wallet that makes selling or lending worthwhile. To speed things up, users can register with several faucets at once.

The ultimate profit guide for Bitcoin

We already know that trading a crypto exchange and managing the coins in the wallet can be particularly profitable. But what should traders actually consider when they start their activities at the crypto, market? Are there some tips and tricks to avoid losses and make traders rich overnight? Realistically, we have to say that the wealth will probably fail to materialize overnight, because every investment involves risk. Especially with Bitcoin or generally in the crypto-market, the volatile price development ensures that previously supposedly safe analyses and forecasts are quickly destroyed and the traders have to react. Anyone who has less experience and cannot handle the situation confidently runs the risk of making losses, of course. This is completely normal even for professional investors, because every trader suffers losses and once started small as an investor.

1 – TIP: PREPARE OPTIMALLY WITH KNOWLEDGE FOR THE CRYPTO TRADE

One of the most important tips is that traders prepare themselves as best as possible for their trading activity. To do this, they should be equipped with a wealth of knowledge and know how the crypto-market works and what can influence the price trend. Investors who don’t even ask what they are trading there and the market reacts again, will of course not be able to react accordingly or interpret the prices correctly. Therefore, we recommend that you learn the basic concepts of crypto trading and the characteristics of the market before you start trading.

IT IS EASIER WITH A DEMO ACCOUNT

Many brokers provide a demo account, which even has virtual credit and can be used for an unlimited period of time. Such a demo account certainly has its advantages, because it allows traders to practice trading without risk and learn from their (negative) experiences. The theoretical knowledge is consolidated thanks to the demo account application.

2 – TIP: DEVELOP YOUR OWN STRATEGY

Another tip is to develop a strategy and act consistently with it. Every successful trader has his individual strategy and implements it to the end. This is important because only in this way, even if you lose, can you analyze exactly why the strategy failed. On the basis of this information, traders can adjust their strategy more optimally and will be better next time. In order to put together a strategy, various criteria play an essential role. These include not only one’s own risk tolerance, but also trading experience, the available equity or investment horizon.

USING THE TRADING JOURNAL FOR THE STRATEGY

In practice, it had proven to be a good idea to use a trading, diary or trading journal to follow the strategy closely and record the individual trading activities. This also gives traders a better overview of their decisions and allows them to understand and learn more clearly. If you keep your trading journal via an Excel document, for example, you can analyze faster and save time.

3 – TIP: USE THE KNOWLEDGE OF PROFESSIONALS

Traders do not always have the opportunity to learn from professional investors. But this is possible with many crypto brokers in the form of analyses or webinars. Of course, traders should never use the strategy of another investor unseen and without questioning, but the tips and tricks of professionals can actually be worth their weight in gold. Therefore, we recommend that you calmly take advantage of these (free) offers and, for example, use the analyses of the professionals to develop your own trading strategies. It can also be helpful if the traders of a community join together and for example rely on copy trading. It should be noted, however, that the opinions or recommendations of other traders should always be checked. Similar to social networks, it is also common practice for Copy Trading in the community to allow everyone to express their opinion in a forum. It is not always easy to see whether this trader is actually experienced and successful.

COPY TRADING ONLY WITH RELIABLE PROFESSIONALS

We recommend that copy trading is only done with truly reputable professionals who have actually invested successfully in Bitcoin or other crypto currencies. Many reputable brokers make the selection much easier by providing the profits and risks and the number of followers as a view.

Conclusion: Bitcoin Wallet comparison shows most secure storage options

There is cold and hot storage, whereby a clear distinction is made between these solutions. Which wallet solution should I use: Hardware, paper, desktop, mobile or browser-based? The choice is not easy, but is made much easier by a Bitcoin Wallet comparison. Based on the experience gained in practical tests, it quickly becomes clear that the cold storage options in particular are particularly suitable for the secure storage of coins. The Hardware Wallet in particular has proven itself through functionality and security, but the Paper Wallet also offers maximum protection. With a view to the countless hacker attacks in 2019 alone, wallet owners should make sure that they themselves protect their wallet as best as possible and, for example, implement different levels of security. It is also important to ensure that access to the online wallet is only possible via secure network connections. Nevertheless, there is still a residual risk associated with hot storage, so we recommend that only the smallest amounts be managed in the online wallet for a short period of time and larger amounts transferred to the offline wallet.

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