Like traditional money, which you keep either in a wallet or on your bank cards, Bitcoin must be kept somewhere. In general, despite the similarities, there is also a big difference between storing traditional money and bitcoin. The problem is that you don’t actually store Bitcoin as it is a part of the blockchain and cannot be moved from it. Instead, you keep private keys that you need to access the part of the blockchain where your Bitcoin is stored. In this guide we’ll review Bitcoin wallets (both physical and exchange wallets), explain how they work, introduce some of the best UK Bitcoin wallets and show how to create your own crypto wallet. Best Bitcoin Wallets in the UK in February 2024 Best Wallet – High-quality Web3 wallet gaining major traction in 2024 eToro – Globally trusted crypto platform OKX – Supports staking and gives access to other Web 3 products Bybit – Beginner-friendly wallet with staking support for stETH, ETH, and more Coinbase – Supports staking of ALGO, ATOM, DAI, USDC, XTZ, Binance – 70+ locked staking products Trezor Ledger Nano S What is a Bitcoin Wallet? In essence, when you buy Bitcoin, you get cryptographic information through which your Bitcoin address is linked to you. This information represents a combination of long and complex codes which are rather difficult to remember (or to hack). That’s why you need a bitcoin wallet where you store these codes or otherwise called private keys. Your Bitcoin wallet interacts with the blockchain network and allows you to send your Bitcoin or receive a new BTC. Never trust your Bitcoin wallet to someone else in the same way as you don’t trust your physical wallet where you keep your money. If someone gets your private keys, they can easily have access to your Bitcoins and steal it. Hence, you create a personal password for your crypto wallet, which you must not lose or forget. With a Bitcoin wallet you can: Receive cryptocurrencies Send cryptos Trade crypto Withdraw cryptos at a Bitcoin ATM Never: Forget your wallet password Trust your password to anyone else Lose a hardware Bitcoin wallet Nowadays, you have multiple Bitcoin wallet options to select – you can download it on your mobile phone, computer or buy it in the form of a physical device. On the whole, bitcoin wallets can be of three basic types – software, hardware, and exchange wallets. A software wallet, also known as a hot storage wallet, is a program or an app that you download and install on a device. In their turn, software wallets can be mobile, web, and desktop wallets. Exchange Wallets In the early days of the crypto craze, there was a widespread opinion among crypto fans – “don’t keep your crypto on a cryptocurrency exchange”. It is because the first cryptocurrency exchanges like Mt Gox and others were less trustworthy and involved lots of scams. Today this saying seems quite outdated, as brokers are trying to build more trust, and you can find basically several good brokers that are regulated and fully licensed platforms where you can safely trade and keep your crypto. From all the available options, hardware wallets are indeed well-known as the most effective and secure way to store bitcoin, but they have their shortcomings too. The biggest threat is that you can lose it or forget your keys, and there is still the possibility of being hacked (remember the Metamask wallet case). Crypto exchanges can also be hacked, but unlike hardware wallets, brokers like eToro and Coinbase will compensate for your loss while crypto wallets won’t. Hardware Wallets A hardware wallet, also known as a cold storage wallet, exists in the physical form. You can buy a hardware wallet from the store and use it to keep your Bitcoin offline. And the third type is an exchange wallet which operates utterly different from the previous two, as long as it is a centralized way of storing your BTC while the other two are decentralized. The exchange wallet is provided by your broker/exchange and is also known as your brokerage account. When you buy Bitcoin in the UK on an exchange platform, your coins are automatically saved on your exchange wallet. We should note that the exchange wallets provided by top brokers that are regulated by serious financial institutions are usually as reliable as high quality decentralized bitcoin wallets like Best Wallet. So, in all cases, when you select a Bitcoin wallet, the important thing is not the type of wallet you choose but its reliability and effectiveness. Top 8 Bitcoin Wallets in the UK In this section, we will introduce some of the most recommended crypto brokers and companies that provide bitcoin wallets to their users. But before making our list of recommendations, we have carefully examined many such brokers to choose those with the best security systems and fee structure. Bear in mind that apart from exchange wallets, we have also included some hardware bitcoin wallets for those who still want to use them. 1. Best Wallet – High-quality Web3 wallet gaining major traction in 2024 As one of the recently launched DeFi wallets, Best Wallet lives up to its name. The product has already garnered attention from multiple media outlets, which have dubbed it one of the best options in the realm of crypto wallets at the moment. It is advertised as a multi-crypto-supported, multi-chain, and multi-wallet option. This essentially means that you can interact with not only popular options like BTC or ETH, but also several other small-cap coins. It supports multiple networks for transactions and allows users to have multiple wallets within their Best Wallet ecosystem. Best Wallet has yet to be launched, but it is still gaining traction due to the wide variety of features it has teased the audience about. It intends to set up a portfolio management section for users, where they can track in real-time all the data they need to know about their holdings. On the other hand, for those who wish to trade on the wallet itself, it offers a high liquidity pool DEX called the Best DEX. Using this can be beneficial for those interested, as they will be able to earn points which may help them win the BEST token airdrop, which is the native token of the wallet. With several other elements like AI integration, support for Web3, etc., this wallet is clearly one that UK investors may not want to overlook. Visit Best Wallet Don’t invest in crypto assets unless you’re prepared to lose all the money you invest. 2. eToro Exchange Wallet – Globally Trusted Crypto Platform eToro is among the most reputable and well-known brokers in the UK and worldwide, with more than 25 million users. Along with its multiple assets available for trading, it also offers cryptocurrencies. Users can get access to eToro’s crypto wallet called Money, has high-level security features. Also, with the Money crypto wallet, you can always be sure to recover your private keys if you forget them. Don’t invest in crypto assets unless you’re prepared to lose all the money you invest. The wallet gives you access to 70+ cryptocurrencies with a trading fee of 1% and there is no fee to store tokens. eToro also has other features such as copy trading and smart portfolios. There is a minimum deposit of $10 (approx. £8) with a 0.5% fee for depositing GBP. Visit eToro Don’t invest in crypto assets unless you’re prepared to lose all the money you invest. 3. OKX Exchange Wallet – Supports staking and gives access to other Web 3 products OKX Wallet is a multi-currency wallet created to offer customers who want to manage, trade, and invest in cryptocurrencies a simple and safe experience. Numerous digital assets, including Bitcoin, Ethereum, and several ERC-20 tokens, are supported by the wallet. It provides both novice and experienced users with a variety of functions and an easy user interface. Due to its distinctive characteristics, the OKX Wallet sets itself apart from other wallets on the market, such as : A wide range of supported cryptocurrencies and tokens Integration with the OKX exchange platform for seamless trading and investment Advanced security measures to protect user funds User-friendly interface that promotes ease of use Regular updates and improvements to keep up with industry standards User Interface and Experience With an intuitive layout that is simple for both new and experienced users to use, the OKX Wallet is made to offer a user-friendly experience. The primary screen of the wallet shows a summary of your holdings with the opportunity to examine further details for each coin or token. Visit OKX 4. Bybit Exchange Wallet – Beginner-friendly wallet with staking support for stETH, ETH, and more The Bybit trading platform offers a safe and convenient Bitcoin wallet called Bybit Wallet. Leading Bitcoin derivatives trading platform Bybit provides its members with a variety of cutting-edge trading tools and services, such as the Bybit Wallet. Users may easily and effectively store, manage, and exchange their digital assets using the wallet. Bybit Wallet has established itself as a top option for traders all around the world because to its user-friendly layout and strong security features. Features of the Bybit Wallet Security is a top priority for Bybit Wallet, which uses multi-signature technology, two-factor authentication (2FA), and cold storage options to protect its customers’ money. In order to guarantee the protection of the assets of its customers, the platform also regularly undergoes security assessments and upgrades. User-friendly Design: The wallet has a simple, clear design that makes it simple for users to trade and manage their digital assets. The platform’s intuitive navigation and responsive design further improve the user experience. Numerous Popular Cryptocurrencies Supported: Bybit Wallet offers support for a wide range of well-known crypto assets, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC), among others. Users can use this to diversify their cryptocurrency holdings and look into fresh trading possibilities. Customer service is offered by Bybit Wallet around-the-clock via a variety of channels, including live chat, email, and social media. Users may always get help from the platform’s devoted support staff with any problems they could run across. Visit Bybit 5. Coinbase Exchange Wallet – Supports staking of ALGO, ATOM, DAI, USDC, XTZ, Coinbase is another worldwide known cryptocurrency exchange that also offers a separate crypto wallet known as Coinbase wallet. The latter exist standalone, and you don’t have to open a Coinbase account to have a Coinbase Wallet. Still, you can link your wallet to your Coinbase account and quickly transfer your funds between them. With your Coinbase Wallet, you can store your crypto coins in one place and get access to more than 500 cryptocurrencies and several NFTs, take part in ICOs, shop at the stores where they accept cryptocurrencies, send crypto to any part of the world, and not only. Among the essential features of the platform offers is its easy and simple-to-use interface. Another crucial thing is your security – Coinbase Wallet protects your private keys with high-standard security systems, including Secure Enclave, biometric authentication, and optional cloud backups. Visit Coinbase 6. Binance Exchange Wallet Binance is a cryptocurrency exchange and a peer-to-peer marketplace that offers users a vast selection of digital assets. To store these cryptocurrencies, Binance also offers a crypto wallet used by already 10 million people around the world. It interacts with several blockchain wallets and crypto tokens and it has a mobile app that you can install on your device and use to store, receive, exchange, and send hundreds of cryptocurrencies. Additionally, Binance Wallet not only allows you to store your cryptos but also gives you the opportunity to earn rewards by staking your coins. At the time of writing, Binance supports locked staking of 76 different cryptos. Visit Binance 7. Trezor For those who prefer to use a hardware wallet and have a larger amount of bitcoin to store, we have selected two of the best-known cold storage wallets. The first one is Trezor, a small-sized device able to hold different types of cryptos, such as Bitcoin, Ethereum, Ripple, Cardano, Zcash, etc. Launched in 2014, it was the first hardware wallet that offers secure storage for your BTC and other crypto assets. You can get Trezor for under $100, and the package also includes a USB that connects the small device to your computer. You will also get a list where you should create a 24-word security code for your Trezor that later you can use to recover your wallet in case you lose your Trezor. The device stands out with excellent privacy, and even the company producing it cannot track how you use it as long as there is no serial number written on it. 8. Ledger Nano S Ledger Nano S is a trendy hardware crypto wallet that became so famous due to some of its features. First and foremost, it’s known as one of the most secure wallets to store your bitcoin, and only a few cases are known when it was hacked. It’s a compact device that is used and packed easily and has built an excellent reputation so far. Similar to the Trezor wallet, when you get your Ledger Nano S, you create a code consisting of 24 words that you can use to recover your private keys in case you lose your physical device. As for its functionality, you can use Nano Ledger S to store almost 1100 tokens and cryptocurrencies. Twenty-three of these digital currencies are backed by Ledger itself, while other crypto assets are available with the help of third-party apps. As for its cost, you can buy a Nano Ledger S hardware wallet for under $60. Conclusion To conclude, Bitcoin is digital money that needs to be stored somewhere, much like any other digital asset. Hence, several crypto wallets emerged offering different services to store your cryptocurrencies. On the whole, they are of three kinds – exchange wallets, hardware, and software wallets. Notably, while exchange wallets were once known as a not-so-secure method to store your bitcoin today, things have significantly changed. There are several brokerage platforms and crypto exchanges with a good reputation that also offer a safe place to store your bitcoin. Apart from the exchange wallets, you can also buy hardware wallets, which is physical device that helps you to keep your bitcoin offline. A software wallet is another type of bitcoin wallet that exists in the form of apps that you install on your device and use it. There are multiple crypto wallets, so you may be somehow confused while selecting the most suitable one. Therefore, from our research, we have collected a list of the five best bitcoin wallets in the UK, including Best Wallet, eToro, Coinbase, and Binance as the best defi/exchange wallets; and Trezor and Ledger Nano S, – the best hardware wallets. Best Wallet - Manage Your Crypto Our Rating Access DeFi and Web3 Dapps Across Multiple Chains Comes With Your Own OpenAI Powered Chat Bot Assistant Compatible With iOS & Android Get Early Access to Upcoming Token Launches & ICOs Store Crypto And NFTs With Industry Leading Security FAQs How do I get a Bitcoin Wallet? It depends on which type of wallet you want to select. Exchange wallets are usually provided by your broker - meaning the wallet is in your brokerage account, and when you buy bitcoin, it is automatically stored on your exchange wallet. However, brokers sometimes also provide a separate crypto wallet that you need to install separately. As for software wallets, you need to download the app and install it on your device. After this, you need to register for an account and create a password for your wallet. Coming to hardware wallets, you need to get them from the stores. What is the best bitcoin wallet in the UK? Analyzing several bitcoin wallets provided by crypto exchanges and hardware wallets, we have composed a list of the best five bitcoin wallets in the UK. It includes two hardware wallets (Trezor and Ledger Nano S) and four defi/exchange wallets (Best Wallet, eToro, Coinbase, and Binance). What’s the difference between a cold and hot wallet? They are both used to store your private keys and give you access to your bitcoin addresses. But hot storage wallets keep your keys online and exist in the form of software apps and programs. In contrast, cold storage wallets are physical devices that store your private keys offline. Can I link my credit card/bank account to my Bitcoin wallet in the UK? You cannot directly transfer bitcoin from your bitcoin wallet to a credit card or a bank account. Firstly, you need to sell your bitcoin and provide the buyer with your payment option details who will transfer money to your account or bank card. But you can link your credit card or bank account to your exchange or brokerage account and use it to withdraw money.