You need a bitcoin wallet to buy your first bitcoin and to get started on your bitcoin trading journey. However, there are several bitcoin wallets available today, including the Bitcoin Prime app, thereby making it a little difficult to make the right choice.
A 2019 report shows extensive research on identifying user activities on wallet apps through network traffic analysis. This report shows how an increasing number of users are adopting Bitcoin wallet apps for different purposes. Knowing which Bitcoin wallet to choose is an important step in your bitcoin journey and here are a few important tips to guide you.
Security is the first thing you must look out for when choosing a bitcoin wallet, as it goes a long way in ensuring the safety of your funds. If it’s a web wallet, confirm if the site is secure by checking the URL. Ensure the URL has HTTPS, with the ‘s’ signifying that it is a secure site. If it is a mobile wallet, ensure it is the right app. You can check the web version to look for a direct link to the app, so you don’t end up downloading the wrong wallet. More importantly, check the security measures the platform has in place. Does it have tight login options such as biometrics login and two-factor authentication? If you aren’t convinced that your money is safe in this wallet, you shouldn’t use it.
Owning Your Bitcoin
One of the most important benefits of trading bitcoin is that you control your money, so if you use an app that doesn’t let you have control over your funds, you may want to quit now. Ensure you can possess the private key of your wallet, which means you’ll always have control and can move your money in and out at will.
The wallet provider must be transparent enough in how they operate and also explain their services and security levels. All information about the wallet and how it intends to manage your money must be made available to the public.
This will help you know how reliable they are and if you can trust them with your money in the long run. You can also check to see if the wallet code is open source, as open-source wallets tend to provide ultimate security to bitcoins.
Bitcoin trading generally allows some level of anonymity but it could also depend on the wallet you use and how important anonymity is to you. If user anonymity is important to you, you may want to check further to know how your information is handled and exposed to the public.
Check for the details the wallet asks for. Does it accept minimal registration information or require more personal information that might be made available to the public? Consider all the factors and opt for the one that suits what you’d prefer best.
The Bottom Line
While deciding on the bitcoin wallet to use, you may also want to check for diversity. Does it allow you to invest in other cryptocurrencies apart from bitcoin? The diversity might be helpful to you in the long run. Have your options ready based on these factors and opt for the best.