The Best Crypto & Bitcoin Wallet in Australia 2021

January 19th, 2021

When trading in cryptocurrencies it is essential to have an understanding of how you store your coins. Unlike most traditional currencies that we are all familiar with using, bitcoin is a digital currency. Bitcoins don’t exist in any physical shape or form - you can’t hold them in your hand - you can’t stuff them under the mattress or put them in a traditional wallet.

So, they can’t really be stored anywhere in the real world. They are a digital currency. They are accessible through Bitcoin addresses, which require a set of digital keys for entry. So, the question of how to securely store bitcoin comes down to the security of those keys. In order to conduct bitcoin transactions digital keys are used to verify the ability of the buyer and seller to have access to the funds. It is vital these keys are protected in a secure storage system.

What is a crypto wallet?

Crypto wallets keep private keys safe, which are used to sign transactions and provide mathematical proof that they have come from the owner of the wallet. This key signature also prevents the transaction from being altered by anybody once it has been issued. A combination of the recipient’s public key and the seller’s private key is what makes a Bitcoin transaction possible. These keys are stored in your crypto wallet.

It is worth noting that people who don’t want to control their private keys and wallets can find others who are willing to host crypto wallets. The most popular of these are cryptocurrency exchanges. By design, most exchanges have the best crypto wallets built in to allow for deposits and withdrawals of different assets. By depositing bitcoin into an exchange’s best crypto wallet, a user is essentially handing over the control of their bitcoins to the exchange as well.

It is always desirable to have access to competent and readily available support to help with queries and troubleshooting, particularly if you’re new to bitcoin trading. Australian based bitcoin exchanges are the most appropriate for supplying the best crypto wallets, if you are living in Australia.

The best crypto wallets in Australia are available in a variety of types and suit different purposes for holding your cryptocurrencies. The best crypto wallets can be roughly divided into two different types - hardware wallets and software wallets.

What types of crypto wallets are there?

Hard Wallets

Hardware wallets are essentially crypto wallets that allow the user to store their valuable keys and records of transactions offline. This can be in the form of paper records, USB storage or a physical hardware device that protects a user’s keys by encrypting all the information and then removing it from the internet. Hard wallets are considered the most secure and can be used to store keys and the majority of the person’s Bitcoins or other cryptocurrencies. It’s critical that the private key isn’t lost, otherwise access can be lost to the cryptocurrency inside the wallet.

Software Wallets

Any wallet that does not come in a physical format can be considered a software wallet. Given the nature of software, though, these types of wallets can exist on any computer, as well as on mobile phones. Some software wallets, called “web” wallets, exist as applications accessible by web browser.

It is important to note that software wallets, regardless of the device they are on, are not as secure as hardware wallets given their digital nature and have the potential to be hacked. However, crypto wallets in Australia supplied by bitcoin exchanges are valuable and provide a secure service - they require your trust in the security methods employed by the crypto exchange provider. Software crypto wallets are a great way to store small amounts of bitcoins for day-to-day transactions.

Do crypto wallets charge fees?

Software wallets are free to download and use on your phone or computer. If you purchase a hardware wallet, then they can cost anywhere from $50 to $300 but are well worth the investment. It is free to receive cryptocurrency, but you will have to pay a fee to send it. There is no fee to the upkeep of the crypto wallet itself.

Are crypto wallets secure?

The biggest concern for any new crypto investor, is how to keep their assets secure. It is possible for people to lose bitcoin and other cryptocurrencies as a result of hacking, loss of access to keys, computer failure and more.

We mentioned above that hardware wallets (or any type of offline wallet) are the safest way to hold crypto as these are not accessible online. That’s not to say that using software wallets is unsafe, but it’s recommended by some in the community that the majority of a person’s cryptocurrencies shouldn’t be kept in them. As with any assets, it’s good to spread them around so that if something does go wrong, they won’t be all lost at once.

Other safety precautions

Backup crypto wallets

Backing up a crypto wallet can save people a lot of stress if something goes wrong. Computers can fail, and if that happens and a wallet hasn’t been backed up recently, it may not be possible to recover all the currency in it. Using a USB stick, hard drive or CD to backup a crypto wallet is strongly recommended as well as setting a strong password on them.

Software updates

Just like a computer, it’s important that a crypto wallet is running on the most up-to-date software to avoid being a target for hackers. Software updates increase security and fix glitches to make a digital crypto wallet safer to use. The same should be done for a mobile phone.

Multi-signature

Crypto users can opt to have other people approve a transaction before it can take place. Think of it like two-factor authentication. Without multiple codes being entered, the account cannot be accessed. While this can slow down the transaction process, it reduces the threat of theft.

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