Bitcoin Wallet Canada: Which Are The Best Ones?
A Bitcoin wallet’s job is to store the Bitcoins purchased by investors. Bitcoin wallets come with private and public keys which give access to a unique Bitcoin address. You can store, withdraw or transfer your Bitcoins by accessing this address. Bitcoin wallets are available for desktops, mobiles and tablets. In case you want to store crypto offline, there are specialized hardware wallets as well. In the simplest form, just like real life wallets can store cash, cards and coins, Bitcoin wallets can hold Bitcoins. They can also be considered to be bank accounts of the decentralized web as well as a virtual vault to store cryptocurrency. In this post, we will take a look at the best Bitcoin wallets that are available in Canada. Let’s get started:
Here are the best Bitcoin Wallets in Canada:
Why do you need a Bitcoin Wallet?
Bitcoin wallets provide you with a valid Bitcoin address and that makes them really useful. You can only receive secure Bitcoins when you have a trusted address. And while you can store your Bitcoin on an exchange, you should have a personal wallet for larger sums. The reason behind that is the fact that exchanges tend to be unstable. For example, the Einstein Exchange of Canada which collapsed in 2019 while it owed $16 million to its customers.
That’s why #ProofOfKeys day is celebrated worldwide by crypto-enthusiasts. It is an annual event on January 3 where everyone is encouraged to withdraw their funds from the exchange to a wallet they control, to bring to light the fact that exchanges often aren’t so trustworthy or reliable. Since Bitcoin is a relatively new invention, regulation surrounding exchanges is still developing, and the remaining gaps threaten customers’ security. #ProofOfKeys day asks people to question whether the exchange they’re holding their Bitcoins on is solvent and to remind everyone of the dictum popularised by Bitcoin expert Andreas Antonopoulos: “not your keys, not your Bitcoin.”
Should you get a software or hardware bitcoin wallet?
As far as Bitcoin wallets in Canada go, they come in different forms. The easiest way to distinguish between them is whether they are in hardware or software form. A software wallet uses a program that lets you store cryptocurrencies on its protocol. A hardware wallet is a physical object. It’s like storing your Bitcoins in a flash drive. Software wallets generally come for free. Low end hardware wallets are priced around CDN $38.74.
While a software Bitcoin wallet is adequate for small Bitcoin quantities, it’s less secure than a hardware wallet. The main reason behind that is the fact that softwares are susceptible to breach via hacking. If you own a large amount of Bitcoin, a hardware wallet is a better option for you.
A hardware wallet doesn’t need internet connectivity to store your Bitcoins so it’s a lot more secure against hacking. Though it’s safe from hackers, you must not lose it or forget your password. If you do, there’s no way to get your Bitcoin back. (Such was the case when the CEO of Canadian crypto exchange Quadriga CX, Gerard Cotten, died on a honeymoon with his wife in India. Over $250 million was trapped in a hardware wallet that was only accessible to Cotten (Investors have questioned if Cotten died, or instead faked his own death to evade the authorities.)
Now that we’ve explored the advantages (and disadvantages) of Bitcoin wallets, let’s look at the best options available in Canada.
One of the best Bitcoin wallets available in Canada, is Trust Wallet. In 2018, Binance acquired Trust Wallet, a mobile Ethereum wallet. It works on both Android and iOS. The wallet has the backing of one of the largest exchanges in the world. You can also use the wallet to take part in “staking.“ With staking, you put some of your cryptos up as a “stake,” which is then used to validate transactions. This generates a passive income, a little like interest on a bank account.
- Free (network fee)
- Supports staking
One of the best Bitcoin wallets available in Canada, is Armory. If you plan on only holding Bitcoin—and don’t care about any other cryptocurrencies—Armory is a free wallet which is suited to long term storage. It has a host of security features such as multi-signature transactions—where multiple people have to sign off on a transaction at the same time—and GPU-resistant encryption (GPUs can perform cryptographic operations with a tiny amount of memory. Armory increases the memory of their keys to protect against these GPUs). Like Coinomi, fees are variable and depend on the quantity of Bitcoin in a transaction.
- Free (network fee)
- Dedicated Bitcoin “cold storage”
- User retains private keys
One of the best Bitcoin wallets available in Canada, is Coinomi. The UK-based wallet is available in Canada and is completely free, although outgoing transactions are charged according to a variable rate. This rate depends on the cryptocurrencies involved and is used to pay miners who verify transactions by adding them to the blockchain.
- Free (mining fees)
- Mobile wallet
- Wide coin support
Concluding the list of the best software Bitcoin wallets available in Canada, is Coinbase. It is one of the most popular crypto exchanges by volume, and also has a software wallet. Instead of storing the keys to your address on the exchange, the keys to your address are stored on your phone. As with other software wallets, miner fees apply and if you buy cryptocurrencies with fiat currency, a transaction fee will also apply. The wallet can be used to pay merchants who accept cryptocurrency, and the funds held on the wallet can be easily transferred to the Coinbase exchange for use in trading.
- Free (miner fees)
- Decentralized keys
- Easy access to popular exchange
Ledger Nano X
One of the best Bitcoin wallets available in Canada, is Ledger‘s flagship wallet, the Nano X, is bluetooth enabled, meaning it can connect to other devices such as a mobile phone or laptop. Thus, the wallet owner has access to a complete transaction history of the account. Ledger pushes updates to the wallets frequently, useful when it comes to protecting against future attacks, should, for instance, hackers work out a way to get into the system via the wallet’s bluetooth function.
- CDN $159.00
- Accepts crypto payments while offline
- Supports 1184 coins
Ledger Nano S
One of the best Bitcoin wallets available in Canada, is Ledger’s second hardware wallet, the Nano S, which is considerably cheaper than the Nano X. It’s an older product, but tried and tested—it’s sold over 1.4 million units globally since its inception. The main difference between these two wallets is that the Nano S does not feature Bluetooth capability. To connect to another device you’ll have to use a USB cable.
- CDN $79.00
- Older than Nano X—bugs have been smoothed out
- Supports over 1000 coins
Trezor Model T
One of the best Bitcoin wallets available in Canada, is Trezor Model T. Trezor is one of Ledger’s main competitors, and its wallets are also supported in Canada. Trezor’s premium option, the Model T, is intended to be used without the need for another device. While the wallet is set up via USB connection, the device can be unlocked without this connection, as PIN entry and passphrases can be entered on the Model T. Although the price might be a deterrent, the model is one of the most comprehensive available, with extensive security features.
- CDN $209.99
- Highly Secure
- Supports over 700 coins
One of the best Bitcoin wallets available in Canada, is Trezor One. Similar to Ledger, Trezor has a cheaper, older wallet which still works well if you don’t want to break the bank. The Trezor One shares many of its features with the Model T, but it needs to be connected to another device to work and its screen is primitively monochromatic. It lacks some of the flash of the Model T, but it’s still a reliable and secure wallet.
- CDN $69.99
- Works on Windows, OS X and Linux
- Open-source code
Concluding our list of the best hardware Bitcoin wallets in Canada is KeepKey. It is a far cheaper alternative to the bigger brands like Ledger and Trezor. Since it doesn’t have an operating system, its creators claim that the wallet is much more resilient against viruses or other malware, which are usually installed on operating systems. The wallet also supports currencies other than Bitcoin. It even features its own exchange, so you can exchange currencies on the wallet. KeepKey works on PC, Mac, Linux, and Android so you shouldn’t need to worry about device compatibility. However, the wallet supports far fewer assets than its competitors. Those are Bitcoin, Bitcoin Cash, Bitcoin Gold, DASH, Dogecoin, Ethereum, and Litecoin. Granted, these are some of the most popular coins, but it falls behind its competitors’ offerings.
- CDN $38.74
- Easy recovery without loss of private keys
- Virus proof
Bitcoin Paper Wallets
There is, of course, one type of wallet that is neither software or hardware. These are paper wallets, where you store the private keys to your Bitcoin address on a piece of paper. This has the advantage of, potentially, absolute security—to get the key, someone would have to break into your house and find a teensy scrap of paper. Of course, you run the risk of losing the key yourself, so make copies and keep them somewhere you won’t lose them. This is a good option if you want to buy and hold Bitcoin offline, but don’t want to use a hardware wallet. It won’t work for crypto trading, but for long term cold storage it’s considered one of the best options.
- Very Secure
Bitcoin Wallets Canada: Conclusion
Finding the right Bitcoin wallet is very important for anyone who owns Bitcoins. However, you need to be mindful of several things before you load your wallets up with Bitcoins. Before choosing from the Best Bitcoin wallets in Canada, you should be extra cautious with your security information. You should also never lose sight of your hardware wallets. If you lose them, you might lose a large chunk of your investment. However, you are better off with a hardware wallet if your Bitcoin value is very high. Another important thing to remember while choosing from the best Bitcoin wallets in Canada is to remember that the cryptocurrency market is extremely volatile. So stay ready to withstand some losses at times. Remember, even though your Bitcoin stays in a wallet, it can still change its value based on the market. So always invest responsibly.