Get a Bitcoin Wallet
First you need a wallet. We highly recommend our customers manage their own cryptocurrency funds and immediately withdraw to any of our recommended desktop, hardware, mobile, paper or web wallets we have listed below.
Furthermore, if security is of the upmost importance, we suggest using a cold storage device like a hardware or paper wallet.
If you prefer us to manage your cryptocurrencies, Bitcoin Australia offers our own full-node wallet solution and cryptocurrency custody service for customers that want us to safeguard their digital assets.
Why do I need a wallet?
A cryptocurrency wallet is similar to a bank account which is used to store, receive and send your digital currency to another wallet account. Whether you want to trade in cryptocurrencies or keep them as an asset, you must have a wallet address.
Desktop wallets can be downloaded onto a computer and they can only be accessed from that particular device. Generally speaking, they offer a good combination between security and convenience. I personally use a full-node bitcoin wallet and take regular backups for added security.
In terms of security, it doesn't get any better than a hardware wallet. This is a physical device that has the sole purpose of storing your private and public keys within the device.
It is never connected to the internet, unless you need to transfer funds. However, you enter your private pin directly onto the device, making it virtually impossible for a hacker to access your keys. I personally use a Ledger Nano S hardware wallet.
A mobile wallet is very similar to a desktop wallet except it is downloaded directly to your mobile device via an app store. This is probably the quickest and simplest way to get started, but remember, the coin information is stored on a third-party platform and could be vulnerable to an "exit scam".
Paper wallets are one of the most underrated crypto wallets available. All you need to do is print your private and public keys onto a piece of paper and that's it, your funds are secure.
This is because the keys are not connected to any servers, meaning the only way someone could access them is if they had the physical paper. When you need to transfer funds, you simply enter the keys into a desktop or web wallet, or even easier, just scan the QR code that you printed.
A web wallet offer the greatest level of convenience when sending coins to another person, however, they are also the least secure. This is because the wallet provider usually has full control over it.
An example of this would be storing coins in a cryptocurrency exchange. The exchange will store your coins on their central server, which means that if it gets hacked, the criminal could have access to all your funds. It is best advised to only keep a small amount of coins in a web wallet.