Best Bitcoin Wallet Australia
It doesn’t matter if you are in Australia or based anywhere in the world the solution is the same, Bitcoin is stored in a Bitcoin wallet, universal to all people.
It’s that simple. As with most things, the best Bitcoin Wallet Australia has to offer is a subjective topic. I have found that there are a lot of misconceptions around how a wallet works. Due to this, the following article will outline the basics of a bitcoin wallet in layman’s terms and then discuss some of the more popular wallets you may be interested in using. So let’s look at the best wallets accessible to Australians in 2020.
1. So in simple terms what is a Bitcoin Wallet?
2. Public and Private keys with the Blockchain
3. Spending and receiving Bitcoin
4.Types of Bitcoin Wallets
5. Online Wallets
6. Software Wallets
7. Paper Wallets
8. Hardware Wallets
9. Exchange Wallets
10. Australian Bitcoin Wallet Frequently Asked Questions (FAQ)
So in simple terms what is a Bitcoin Wallet?
A Bitcoin (BTC) wallet is not region or country-specific. Wallets are international, you do not need a specific Bitcoin Wallet for Australia. A Bitcoin wallet is like a Bitcoin bank account, you store your Bitcoin with it, and it allows you to send or receive transactions. Are you with me so far? Great, let’s dive a little deeper.
Public and Private Keys with the Blockchain
It is a little hard to wrap your head around at first, but a Bitcoin Wallet doesn’t physically store bitcoin, it only holds the public and private keys for an individual to access their bitcoin. A private key is like your pin number, you must keep it safe as it allows you to send transactions from your Bitcoin wallet. The public key can be public knowledge. You can hand it over to any Australian to pay you in Bitcoin if you so wish, it is derived from your private key but does not reveal your private key (due to some super clever cryptography!).
You may have heard of the ‘blockchain’. The blockchain is just a ledger of people’s Bitcoin balances. Your private key gives you access to your record on the ledger and your public key is like an account number, so people can send you Bitcoin to your account on the ledger without having access to your private key. A practical example can be found in the following video (feel free to skip it if you aren’t interested):
Spending and receiving Bitcoin
So in order to access your Bitcoin and spend it, you must have access to your private key. This private key is created when the wallet address is initially made. You want to create a strong passphrase of at least 10 words and special characters; the larger the passphrase the harder it is to crack. Once created, if I want to send my Bitcoin from my wallet address to my friend’s address, they can advise me of their wallets public address. You can then login to your wallet software (such as Exodus) as you control the private key to your account (with the use of your private key via a passphrase) and use the ‘send’ function to send, for example, 2.5 BTC. It’s as easy as that to send Bitcoin to your friend’s Bitcoin Wallet Address in Australia or anywhere in the world.
Once this occurs, the Bitcoin network receives the Bitcoin transfer request and it is processed into the first available block on the blockchain. Again, the Blockchain is a universal ledger; there are no altered specifics if you are located in Australia, Europe or Polynesia, everyone has the same copy of the ledger. Essentially all that is occurring is the network will remove 2.5BTC from your Bitcoin wallet address on the bitcoin ledger and add 2.5BTC to your friends address on the Bitcoin ledger. Miners confirm this transaction and as a reward for this, they receive a small amount of BTC as a transaction fee to incentivise their participation.
Types of Bitcoin Wallets
Bitcoin wallets come in quite a few formats with the most common being a software wallet. Australian Bitcoin Wallets are no different to their overseas counterparts, so it comes down to personal choice. With that in mind let’s cover the main types of wallet.
Online wallets are web-based wallets, which are not downloaded. Data is hosted on an online server and controlled by a third party. In general, the data is heavily encrypted to ensure it is safe, however online wallets are considered the least-safest way to store you Bitcoin in Australia.
These types of wallets are the most common Bitcoin Wallet in Australia. Software wallets include all downloadable wallets on both desktop computers and on mobile devices. These downloadable wallets are usually an app that will connect directly to the Bitcoin (or chosen crypto) interface. It comes down to personal preference on what is the best bitcoin wallet Australia agrees upon; so here are some suggestions for beginner Bitcoin wallets for Aussies:
Exodus is a multi-crypto user-friendly digital currency software wallet. You can download this wallet via the exodus website, or for Australian mobile users the play store for android or app store for iOS. Exodus supports most of the popular currencies including Bitcoin, Ethereum, XRP, Litecoin, Monero, Binance Coin, Stellar, Neo and many more. Exodus has a simple layout and is easy to use for Australian’s new to the crypto market, whilst being sophisticated enough to be useful for veterans alike.
Electrum is a Bitcoin wallet downloadable on Windows, Mac, Linux and on Android for mobile users. The Electrum wallet is popular with Australian’s due to its tight security around the generation of private keys, the ability to employ 2fa and more. Unlike Exodus, Electrum is purely a Bitcoin (BTC) wallet only and it delivers a good no-frills experience. It has a low to medium learning curve for new users but once set up, is solid and reliable.
Bread (mobile only)
The bread wallet is a mobile-only application available to Australian’s on both Android and iOS. It is relatively user-friendly, enabling you to set up an account quickly and store a passphrase offline to enable you to securely recover your account if you ever lose your mobile device. It supports Bitcoin, Bitcoin Cash, Ethereum and ERC20 tokens (coins built on Ethereum ecosystem). Bread connects directly to the Bitcoin network and is a great option for those that want to free themselves from a desktop device for ‘on the go’ storage or spending of Bitcoin in Australia.
Paper wallets are created online and are able to be printed out as a physical document (cold wallet) that contains copies of the public and private keys that make up a wallet. Often it will have QR codes so that you can quickly scan them and add the keys into a software wallet to make a transaction. The benefit of a paper wallet is that the keys are not stored digitally anywhere and are therefore not subject to cyber-attacks or hardware failures. The disadvantage of a paper wallet is that paper and ink can degrade, and paper is relatively fragile. If you lose a paper wallet (or can’t read what is on it), you’ll never be able to access the coins sent to its address. Paper wallets are not recommended for beginners, especially if you intend on spending Bitcoin, as you will need to ‘sweep’ your Bitcoin balance into a hot wallet.
Hardware wallet: Dedicated hardware built to hold cryptocurrency. This can be as simple as a USB stick or as sophisticated as custom-built hardware for crypto such as the Ledger Nano. These devices can go online to make transactions and send/receive data and then can be taken offline for transportation and security. They are generally considered the safest form of wallet. Here is a breakdown of the most popular hardware wallets and devices built for crypto:
Ledger Nano S
The Ledger Nano S is the highest selling hardware bitcoin wallet Australia has seen since the inception of cryptocurrency. Its popularity has grown through its ease of use, simple design and good security record. It is also a relatively inexpensive purchase to secure your crypto offline.
To set up your Ledger Nano S you plug it into your computer with its bundled cable and you can automatically configure it. After setup, you can download Ledger software from the official site to install for a user-friendly interface between your Ledger Nano S and the Bitcoin network.
Ledger Nano X
The Ledger Nano X is the latest version from the Ledger company to be available in Australia. It’s main difference is its ability to connect to mobile devices via bluetooth as well as PC like the Ledger Nano S. It also has updated specs to store more applications and a larger battery capacity.
Trezor Model T
The Trezor Model T is the latest model available in Australia from Trezor. It includes support for all the main cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Zcash, Dash and thousands more. It has a full-colour touch screen, is encrypted, and supports a microSD card. Trezor is a great option for Australian’s looking for a user-friendly, good looking hardware wallet to store their cryptocurrency assets long term.
The KeepKey hardware wallet was created as an all-encompassing platform built to handle popular cryptocurrencies such as Bitcoin, Ethereum, BNB and OmiseGo to name a few. The KeepKey hardware wallet uses PIN protection and passphrases to secure your crypto assets. It has customizable transaction speeds and limitless wallet address support. You may not find this suitable as it is developed and interacts with the shapeshift service, so research shapeshift prior to looking at purchasing this wallet.
If you are interested, all the above hardware devices can be purchased through Easy Crypto here.
I hope these reviews point you in the right direction when assessing what the Best Bitcoin Wallet for Australian’s is; and where to download or purchase the right items to safely manage your personal Bitcoin assets.
Remember that the security of your Bitcoin is solely in your hands. It pays to be familiar with the technology and practice sending and receiving small amounts. Here at Easy Crypto Australia, we aim to educate and assist all newcomers to the Bitcoin world. If you are ever in in doubt don’t hesitate to contact us for advice.
You can find more information on password security for your wallets here.
Australian Bitcoin Wallet Frequently Asked Questions (FAQ)
Q. When using a Bitcoin Wallet, what does a ‘confirmation’ mean?
A. Your Bitcoin transactions will change to the status of ‘confirmed’ when miners have validated them on the blockchain.
Q. How quick will transactions be confirmed in my chosen Bitcoin Wallet?
A. Speed of confirmation is usually related to the fee you attached to your transaction. Miners prioritise transactions that pay the highest fee. However, you will find that a standard fee will still be confirmed relatively quickly.
Q. Where can I monitor my Bitcoin wallet transaction?
A. Most Bitcoin wallets will notify you of your transactions in real time. However, you can also check a transaction by copying your wallet public address via a site such as Blockchair.
Q. I can’t see my transaction processing anywhere?
A. Your wallet software sometimes may take a minute or two to start processing the transaction. Some may also require a secondary confirmation, such as an email confirmation on your end for safety reasons.
Q. What is the QR code next to my Bitcoin Wallet Address?
A. QR codes are like barcodes. They are commonly used to scan items using a phone camera. Bitcoin Wallet Addresses can be scanned this way, making it a more user friendly way to send or receive BTC as required.
Q. I’ve forgotten my Bitcoin wallet password, what should I do?
A. Most wallets will allow restoration via a ‘seed phrase’. This is a pass phrase of words that you wrote down when you created your wallet address and stored somewhere physically, such as on a piece of paper. Using these seed words, you can restore you Bitcoin wallet. It is highly recommended you store your seed phrase and password somewhere extremely safe and always think about backups.