Author:
hannah
Last Updated on:
09.09.2024
Table of Content
How does Bitcoin work?
In order to understand what crypto wallet is best for storing Bitcoin, it’s important that you’re up to date with how Bitcoin works. Unlike fiat currencies, Bitcoin can’t be physically stored and used. After all, a digital currency has no physical form, so the only way you can store and access crypto is through a digital wallet.
Everything from mining a Bitcoin to Bitcoin halving is controlled by blockchain technology. So, in order to bring new Bitcoin into circulation, several equations need to be solved. Once the miner has solved those equations, the coin will be added to Bitcoin’s blockchain; this process is known as Bitcoin mining.
You’re probably wondering how Bitcoin avoids inflation; after all, that is the primary reason any currency crashes. Well, the man behind Bitcoin is a genius. Roughly every four years, the reward on mining Bitcoin is cut down by 50% by the software running Bitcoin. Also, there are only a limited amount of 21 million Bitcoins that are expected to be mined by the year 2041. By then, the supply of Bitcoin will have been exhausted.
Nowadays, the easiest way to acquire, store, and sell Bitcoin is through a registered crypto exchange platform. Here at Crypto Parrot, we strive to make crypto trading as easy and convenient as possible with the help of an easy-to-use and up-to-date trading simulator, and plenty of reviews on various crypto topics. You can visit our website to learn more about how to trade Bitcoin.
Compare the best crypto providers
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
What is a Bitcoin Wallet?
A Bitcoin wallet refers to a crypto wallet, which is often offered as an additional feature by a crypto exchange. There are numerous types of crypto wallets, including hot wallets, cold wallets, and paper wallets.
A crypto wallet is a secure digital online place where you can store your cryptocurrencies to either HODL them or use them for everyday transactions. Knowing the worth of crypto coins, choosing the best Bitcoin wallet Canada can be a hassle.
It is common for wallet holders to be concerned about potential hacks and scams surrounding their crypto. Unfortunately, due to such events being reported before, we can understand why. This is one of the key reasons why it is so important to review your options and select the correct style of wallet for your Bitcoin investments.
There are a number of factors to be considered before choosing the best crypto wallet Canada that suits your needs, and we’ll be discussing these factors in detail later.
How does a Bitcoin Wallet work?
Moving towards the million-dollar question, how do crypto wallets work? Well, each Bitcoin wallet carries a secret key or private key, which is used to validate transactions and ensure nobody else uses your Bitcoin. The transactions that take place through the wallet are conducted on the blockchain, which is a shared public ledger of Bitcoin.
Whenever a Bitcoin transaction occurs, there’s a transfer of value between multiple wallets. For instance, when a single wallet is accessed to purchase a service or good, it passes on to another Bitcoin wallet. During the process, every single Bitcoin wallet uses its data to validate the ongoing transaction by providing mathematical proof that the buyer or sellers are the owners of their Bitcoin wallets.
This is why, as more and more Bitcoins are mined and brought into circulation, the blockchain becomes more secure.
Types of Crypto Wallets – Choosing the best Bitcoin wallet Canada
There are several types of crypto wallets, each of which are designed for a specific purpose and suit a certain group of people. Here are the main types of crypto wallets:
Hot wallet
These wallets are connected to the internet and are used mostly by people who value accessibility. If you’re using a hot wallet, you can access your crypto and make instant transactions whenever you want. Albeit, they’re considered less secure due to the potential threat of hackers and attacks by fraudsters. Hence, people who use hot wallets are concerned about the potential lack of privacy and security.
Cold wallets
Cold wallets refer to offline wallets and are used mostly by people who want to store their crypto for longer periods of time. These wallets provide improved security as they’re free from fraudsters and hackers that use the internet to break into people’s accounts.
Some cold wallets are connected to the internet to provide easy accessibility and act as a vault, while others are entirely offline and lack instant accessibility. Someone who’s into HODL’ing crypto can easily secure their crypto in a cold wallet to ensure long-term security.
Other kinds of Crypto Wallets
Mobile wallets
A mobile wallet can be downloaded and installed and used to carry out regular crypto-transactions through a mobile device. However, since mobile wallets are linked with the internet as well, users must carry out security measures to avoid any potential online theft.
The primary use of these wallets is to provide an easy way to use crypto on a regular basis. All you have to do is scan a QR code on your application to pay through your digital wallet.
Desktop wallet
Desktop wallets store crypto in offline mode, making these wallets more secure than mobile wallets and online wallets. You can access your crypto coins through your desktop by logging in online. However, it’s important to still carry out protective measures to ensure your crypto is entirely secure.
Online web wallets
An online wallet is simply a crypto wallet based on the web, which can be accessed only through a web browser. Are these wallets the safest? Well, not exactly. But they’re extremely convenient for someone who has a smaller amount of crypto to store and wants to make instant transactions.
Which Crypto Wallet is the best for you?
Each type of crypto wallet offers its own set of pros and cons and targets a different set of people. For instance, a crypto wallet that may be suitable for a day trader may not be suitable for a crypto trader who prefers HODL’ing.
There are a few things to consider before deciding on the best crypto wallet for you. Firstly, you must choose a crypto exchange that is regulated and secure and offers an exceptional trading experience alongside secure & user-friendly crypto-wallets.
Secondly, you must decide what you look for in a crypto wallet according to your needs. For example, are you looking for an accessible crypto wallet? If yes, you’re better off using an online wallet. In case you’re looking for a secure way to store your crypto over a longer period of time, your best option would be an offline wallet or desktop wallet.
Luckily here at Crypto Parrot, we strive to provide traders with the best crypto trading experience they could get. Thankfully, we’re able to achieve that through our top-notch simulated trading platform, a secure and user-friendly invoicing system, and an excellent customer support team to make sure any arising issues or queries are resolved promptly.
The best Bitcoin wallet Canada
Here’s a list of wallets, each of which can be considered as the best crypto wallet Canada and are known for providing users with the best security and features:
Electrum: The ultimate Bitcoin wallet. It’s a hot wallet but offers users the option for cold storage as well. It is one of the original Bitcoin Wallets and was inaugurated back in 2011. Since its inauguration, Electrum has seen little change and has continued to excel in its primary function. Users can expect a high level of customizable security on the wallet, which makes it highly secure. In addition, you can open an account with Electrum free of cost, though it doesn’t offer an incorporated exchange.
Exodus: This wallet is known to ideally suit beginners, thanks to its simple and user-friendly interface. Users can swap more than 100 cryptocurrencies; sounds great, right? Though the wallet uses closed-source software, which brings some concern in regards to its security. On a side note, users can benefit from the wallet’s in-build exchange feature.
Mycelium: The following wallet is mobile-only and supports a limited range of cryptos, including Bitcoin, Ether, ERC-20 tokens, and FIO tokens. Though it’s a hot wallet, it offers the option for cold storage as well. Mycelium is known for being one of the earliest crypto wallets so far and allows users to register for free. In addition, there are several advanced features offered by the wallet. Meanwhile, it’s still user-friendly, which makes it ideal for beginners and experts alike.
Ledger: The following crypto hardware wallet Canada offers users secure storage of a limited number of cryptos for a pretty low cost. Though the cold wallet isn’t free and there’s a charge of 59$ to purchase it, the investment is worth it if you’re concerned about your crypto coins being secure and don’t want to empty your pockets to achieve that.
Learn about the best wallet to store your Bitcoin with Crypto Parrot today
To get the whole crypto trading experience and decide which is the best cryptocurrency wallet Canada, you can sign up with the Crypto Parrot’s trading simulator today. Here’s what you have to do:
- Visit our website and click on sign in
- Enter basic details and provide proof of identity.
- Experience crypto trading and seek as much experience and insight as you want.
Here at Crypto Parrot, we aim to provide traders with a fun, smooth, and effective simulated trading experience. You can sign up within minutes and explore multiple features and trading options offered on our trading simulator. From the best wallets to store your Bitcoin, to the best trading platform you can trade on; you can find it all on the reviews and guide section of our website.
We believe ongoing learning can take you to the top, which is why we focus on providing educational tools and guides to newbie traders as well as intermediate traders. Hop on to our platform to begin your journey towards becoming an expert in crypto trading.
Final thoughts
Anyone who has ever invested in crypto would vouch for the fact that choosing what crypto wallet to use can be intimidating. There are so many questions regarding the accessibility and security of each type of wallet that aren’t answerable without guidance.
However, to choose the best crypto wallet to store your Bitcoin in, you must first choose a secure and regulated crypto broker. Then, you need to evaluate what you want in your crypto wallet and study each type of crypto wallet thoroughly. This will help you align your needs with your best available options so you can choose a crypto wallet that meets your needs the best.
To get a better picture of Bitcoin trading and securing, visit our website now and register an account on our crypto trading simulator. Our primary purpose is to put you on the right track so you can make the most out of your crypto trading journey; from investing in crypto to storing your crypto coins in digital wallets securely, we’re here to help you through it all.
Compare the best crypto providers
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Best crypto wallet Canada FAQ
More Articles
