Best Bitcoin Wallets for Canadians for 2020
Because bitcoin is a virtual currency, you cannot hold it in your hand. Nor can you store it in a traditional bank account. That’s where bitcoin wallets come in. A bitcoin wallet is a type of software that lets you store your cryptocurrency online, or in the case of a hardware wallet, offline in a physical storage unit. The owner of a bitcoin wallet gains access to their wallet by using a private key.
Bitcoin Wallets: Hardware vs. Software
When trading bitcoin, one of the first decisions you’ll need to make is using a hardware or software bitcoin wallet. The latter is ideal for storing small amounts of bitcoin, as it lives online and is convenient to use. They are also less costly than hardware wallets in most circumstances.
The downside to a software wallet is that they are less secure than their hardware counterparts since they are always online. A hardware bitcoin wallet can be disconnected from the internet and kept in safe storage. This makes them more ideal for storing large amounts of bitcoin.
Best Bitcoin Wallets in Canada
Without further ado, here are the best bitcoin wallets for 2020. To make things easier, I’ve broken the list into two categories: Beginners and Experienced Traders.
Best for Beginners
If you’re getting started buying and selling bitcoin, the best cryptocurrency wallet is probably a software or hot wallet. Most are free while offering a fairly high level of security. If you prefer a hardware wallet, I’ve included a couple of reasonably priced options.
Armory offers free bitcoin cold storage, which means that your bitcoin wallet is stored in a computer that is never connected to the internet. This increases the level of security. Armory is limited to bitcoin storage only, so if you’re trading other cryptocurrencies, it won’t be your best option.
- Software wallet with ‘cold storage’ capability
- Network fee
- Dedicated bitcoin storage
- A cold wallet enhances security.
The Coinbase software wallet is flexible and easy to use, making it a great option for beginners. Coinbase operates a popular crypto exchange, so you can easily transfer funds from your wallet to trade on the exchange. Storage is free, although there are miner fees to account for. Unlike Armory, you can store several cryptocurrencies in your Coinbase wallet.
- Miner fees
- Access keys are stored on your phone.
- Online storage via mobile and web
- Connects to crypto exchange for easy transfer of funds
Trezor One is a more affordable but slightly less functional version of Trezors flagship cold wallet, the Model T. For $69.99, you still get a highly secure wallet, but it must be connected to an external device to work. According to Trezor, you can easily backup the data on the One in case of loss or theft.
- Cold wallet
- Secure storage
- Open-source software
- Connectivity to a Windows, macOS, or Linux device
Ledger has a top of the line cold wallet, called the Nano X, featured below. The Nano S, on the other hand, is a more affordable alternative. Unlike the X, the Nano S lacks Bluetooth connectivity, so you will need a USB cable to connect to your device. If you’re new to bitcoin trading, it offers reliable and secure storage that’s well priced.
- Cold wallet
- Safe and secure storage
- Well-tested with over 1MM users
- Lacks Bluetooth connectivity of Nano X
Founded in 2014, Coinomi claims to be the “oldest multi-chain wallet on the market, with millions of active users.” They also claim to have never had a single hack on a Coinomi wallet. That should be enough to reassure new users, who can manage over 1700 cryptocurrency assets with Coinomi.
- Hot wallet
- Mining Fees
- No fees for sending and receiving transactions
- Broad crypto support
Best for Experienced Bitcoin Traders
The following bitcoin wallets are well suited for experienced traders or anyone who requires higher crypto storage volumes. In general, cold wallets are more expensive, but they are well worth the price if you’re serious about cryptocurrency.
The Model T is Trezor’s top-end bitcoin wallet. It supports hundreds of coins and offers high levels of security. The wallet connects to your computer via USB and can be stored offline when not in use. It even has a touchscreen to display authentication requests. If there’s a downside, it’s the price, as the unit will set you back over $200.
- Cold wallet, very secure
- Unlimited wallets available
- Supports a large number of cryptocurrencies (almost 1,400)
The Nano X is a modern, sleek device resembling a USB drive that allows you to securely manage several coins, including Bitcoin, Ethereum, and ERC20. It can connect to your mobile phone via Bluetooth, making it easy to trade crypto while you’re on-the-go, or you can connect to your device using the USB-C cable, which is included. It has a lower price point than its main competitor, the Treznor Model T.
- Cold wallet
- Available Bluetooth connectivity
- Open-source software
- Over 1500 cryptocurrencies are supported.
If you’re looking for cold storage without the expense of the higher priced Ledger and Trezor, KeepKey is a solid alternative. It features its own exchange and is highly resilient to viruses because it doesn’t have its own operating system. It is compatible across Android, Linux, PC, and Mac systems, but it is limited in the number of cryptocurrencies it supports.
- Cold wallet
- Works with the new Shapeshift platform
- Storage for over 40 top coins
- Unlimited wallet addresses per device
Do I Need a Wallet for Bitcoin?
It is possible to manage your bitcoin without a dedicated hardware or software wallet. It’s called a paper wallet, and all it means is that you record your private keys on a piece of paper and keep it in a very secure location. Without any online storage, your bitcoin is highly secure; meanwhile, you avoid the costs of purchasing a hardware wallet. Of course, you’d better store that paper in a safe place.
What is the Safest Cryptocurrency Wallet?
While all crypto wallets have numerous built-in security features, hardware wallets that offer cold storage are considered the most secure. The reason for this is simple: your bitcoin is stored off-line and is not accessible to hackers or viruses. If security is your top priority, consider investing in a hardware wallet. Any of the offerings from Trezor or Ledger would work well.
Final Thoughts on BitCoin Wallets
There you have it, eight of the best bitcoin wallets available to Canadian crypto traders in 2020. If you’re new to the world of bitcoin, you should learn how to buy and sell cryptocurrency before deciding to download or purchase any of the bitcoin wallets featured in this article. Remember that cryptocurrency is highly speculative and cannot be considered a traditional investment, like a stock or bond. In other words, you should never trade cryptocurrency with money that you can’t afford to lose.