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Guide · holding your own bitcoin

Bitcoin wallets: where your bitcoin should really live

Setting up a bitcoin wallet takes minutes. The real question is where your key ends up: with an exchange, in an app on your phone, or on a hardware wallet. For bitcoin you mean to keep, the answer is simple.

  • Bitcoin-only firmware
  • SegWit and Taproot
  • Fresh address per payment
See the Bitcoin-only Trezor (opens in a new tab)Set one up in four steps

Bitcoin-only Trezor from €59

By the PlatformCrypto.eu editorial team · checked on

Bitcoin-onlyOpen source

Short answer

Which bitcoin wallet should you use?

For pocket money, an app will do. For bitcoin you plan to hold for years, a hardware wallet is the safest place, and a Bitcoin-only Trezor is safer still: its firmware contains nothing but bitcoin, so there is less code to go wrong. It costs the same as the standard edition.

€59Trezor Safe 3 Bitcoin-only
€129Trezor Safe 5 Bitcoin-only
2014Trezor has secured bitcoin since the Model One
7other bitcoin apps that work with Trezor, such as Sparrow

What is it?

A bitcoin wallet does not hold bitcoin

Your bitcoin sits on the blockchain, not in your wallet. A bitcoin wallet holds the key that proves the coins are yours and generates addresses to receive with. Whoever has the key can spend the bitcoin.

So choosing a wallet really comes down to one question: who holds the key, and how well is it protected? On an exchange, the exchange does. In an app, you do, on your phone. On a hardware wallet, you do, offline.

Types

Three kinds of bitcoin wallet

Holding bitcoin on an exchange, in an app or on a hardware wallet
TopicExchangeApp (hot wallet)SafestHardware wallet
Who holds the key?Drawback: The exchangeYou, on your phoneAdvantage: You, offline
Setting upAccount with ID checkAdvantage: Install an appSet up the device in Trezor Suite
CostNoneFreeFrom €59, one-off
Main riskDrawback: Exchange hack or collapseDrawback: Malware or a lost phoneAdvantage: Only your recovery phrase must stay safe
Best forBuying and sellingSmall sums, paymentsHolding for the long run

You buy bitcoin on an exchange; compare what each one gives you per euro on buy bitcoin.

Bitcoin-only

Only bitcoin? Get the Bitcoin-only edition

Same device, same price, just bitcoin in the firmware. You can also switch a standard Trezor to Bitcoin-only firmware later in Trezor Suite.

Set-up

Creating a bitcoin wallet in four steps

  1. Choose your wallet

    A hardware wallet for long-term holdings, an app for small amounts. Order a Trezor directly from Trezor.

  2. Create your recovery phrase

    The wallet shows 12, 20 or 24 words. Write them on paper or steel: they are the key to your bitcoin.

  3. Generate a receive address

    Trezor Suite gives you a new address for every payment, making your transactions harder to link.

  4. Move your bitcoin

    Withdraw from your exchange, choose the Bitcoin network and send a small amount first.

For power users

Trezor works with your favourite bitcoin app too

Trezor Suite supports SegWit and Taproot, coin control and routing over Tor. If you prefer another bitcoin app, Trezor lists Sparrow, Electrum, Wasabi, Exodus, Specter, Green and Bitcoin Safe as compatible, with the key staying on the Trezor.

For an extra layer you can set a passphrase: an additional word on top of your recovery phrase that is never stored anywhere. Each passphrase opens a separate hidden wallet.

  • Coin control: choose which coins you spend
  • Tor: hide your IP address from Suite’s servers
  • Passphrase: a hidden wallet on top of your recovery phrase

Your own bitcoin wallet, offline

Order a Trezor straight from the maker. The Bitcoin-only editions cost the same as the standard models.

Frequently asked questions

How do I create a bitcoin wallet?

Pick a wallet (an app or a hardware wallet such as a Trezor), write down the recovery phrase it shows, and generate a receive address. You can then receive bitcoin, for example by withdrawing from an exchange.

What is the best bitcoin wallet?

For bitcoin you plan to keep, a hardware wallet. A Bitcoin-only Trezor (€59) runs firmware with nothing but bitcoin and costs the same as the standard edition. For small amounts or payments an app is fine.

Is a bitcoin wallet free?

An app is free, and so is Trezor Suite. A hardware wallet is a one-off purchase. Every transaction pays bitcoin’s network fee, which depends on how busy the network is.

Why does my bitcoin address keep changing?

Trezor Suite creates a fresh address for each payment to protect your privacy. Old addresses keep working, though an exchange may ask you to verify each new one.

Can I send bitcoin from an exchange to my own wallet?

Yes. Choose Withdraw on the exchange, paste your wallet address and select the Bitcoin network. Above certain amounts the exchange will ask you to prove the wallet is yours.

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