SOFTWARE WALLETS
Once you have made your first bitcoin purchase, it is recommended that you withdraw your coins from the exchange into self-custody. This is important in case the exchange you were using suffers a hack, goes bankrupt, or gets shut down for whatever reason. Remember, there is no deposit insurance with exchanges in the same way there is with banks. Now there is a large selection of software and hardware available to choose from, which can be pretty overwhelming if this is your first time. To help you, I have listed here some of my favorite bitcoin software wallet apps that you can choose from. All of these choices are only for bitcoin and do not support any other cryptocurrencies. Most of these are self-custodial wallets, where you own the keys to your funds. However a few of the lightning wallets listed here are custodial, which I am only listing them if you want to transact very small amounts and learn how to use the lightning network. I would not have more than $50 worth stored in any of these custodial lightning apps.
| SOFTWARE APP | AVAILABLE PLATFORMS | NETWORKS | OTHER INFO |
|---|---|---|---|
| Alby | Browser extension: Firefox & all Chromium browsers | Lightning | Invitation code needed for Alby account; custodial wallet; extension allows for external connection of another existing wallet |
| AQUA | iOS and Android | On-chain, Liquid, & Lightning | Interaction with Lightning takes place through the Boltz integration; balance of the Layer 2 “Spending” account is held solely in liquid bitcoin (L-BTC) |
| Bitcoin Jungle | iOS and Android | Lightning | Custodial wallet; not available in USA app stores; phone number required; USA phone numbers DO work |
| Blink | iOS and Android | Lightning | Custodial wallet; not available in USA app stores; phone number required; USA phone numbers DO NOT work |
| Blockstream Green | Windows, macOS, Linux, iOS, and Android | On-chain, Liquid, & Lightning | Self-custodial lightning is available only on the mobile app; must enable experimental features in order to set it up |
| Breez | iOS and Android | Lightning | Self-custodial lightning wallet |
| Blue Wallet | macOS, iOS, and Android | On-chain & Lightning | Lightning is only available through an external connection to an existing wallet (LNDhub) |
| CoinOs | Web browser | On-chain, Liquid, & Lightning | Custodial account; one unified balance; can also be used as a point-of-sale terminal |
| Electrum | Windows, macOS, Linux, and Android | On-chain & Lightning | |
| Mutiny Wallet | Web browser | On-chain & Lightning | |
| Muun | iOS and Android | On-chain & Lightning | Interaction with Lightning takes place with submarine swaps; balance is held on-chain |
| Phoenix Wallet | iOS and Android | Lightning | Self-custodial lightning wallet; not available in USA app stores |
| Sparrow Wallet | Windows, macOS, and Linux | On-chain | |
| Wallby | iOS and Android | On-chain, Liquid, & Rootstock | New app; Lightning and RGB are coming soon |
| Wallet of Satoshi | iOS and Android | Lightning | Custodial wallet; not available in USA app stores |
HARDWARE WALLETS
If you are holding large amounts of bitcoin, for example over $1,000 worth, then I recommend purchasing a dedicated hardware device to store the keys to your funds. These are called hardware wallets. The main difference between hardware and software wallets is how the keys to your money are stored. With software wallets (also called hot wallets), the keys are stored (and encrypted) on the same device as the software that your keys interact with (desktop computer or mobile phone). Hardware wallets store your keys on a dedicated device that does not connect to the internet and therefore your keys cannot be obtained easily by any computer malware. Below I have listed some excellent well-known hardware wallet brands you can choose from. All of them are either bitcoin-only or offer bitcoin-only firmware.
- Bitbox02 Bitcoin Only Edition
- Blockstream Jade
- Coldcard
- Foundation Passport
- SeedSigner
- Trezor