If you’ve been wondering what the best cryptocurrency, blockchain, and Bitcoin wallet is in Australia, you’ve come to the right place. This guide is fully-loaded with an overview of the best cryptocurrency and Bitcoin wallets in Australia. We give you a breakdown of the different types of wallets, compare some of the most commonly used blockchain wallet keywords, and describe what crypto wallets work best for Australian cryptocurrency holders.
Sometimes what is considered “the best cryptocurrency wallet in Australia” will come down to preference. We’ve got you covered! Some of the deciding factors we’re going to discuss in this guide include:
- Convenience/ Flexibility
- Advanced Features
If you’re interested in learning more about cryptocurrency basics, then be sure to check out our “2020 Beginners Guide for Cryptocurrency Investing.”
Crypto and Bitcoin Wallets: The Overall Market
The number of crypto wallets has grown significantly from nearly 15 million wallets in Q2 2017, to over 50 million wallets in Q2 2020 (Statista). That increase represents a staggering 235% rise! The outlook for cryptocurrency wallets looks bullish.
As the number of people investing in cryptocurrency increases, the number of wallets naturally increases too. Every cryptocurrency transaction requires a private key and a public key, and a crypto wallet is merely a specific method of saving your private keys. There are a variety of means and methods to securing private keys, and this article will explain these different types of wallets.
Cryptocurrency Wallet Providers in Australia
Whether you are choosing to store your crypto keys in a hot wallet or a cold wallet, there are many options available for blockchain wallets in Australia. We’re here to help answer your question “What is the best cryptocurrency wallet in Australia?”
Well, the most popular method for storing your keys is an exchange wallet. That is because users like to have crypto ready at their fingertips to trade as the market fluctuates. However, just because something is popular doesn’t mean it’s the best, or the safest. And as the Head of Business Development at Swyftx, notice I write that even as a stakeholder in the wallet exchange ecosystem.
All of us at Swyftx strongly encourage our users to have a hardware wallet in addition to your cryptocurrency account. We cannot stress the importance of this enough! Remember, a cryptocurrency exchange is where you buy, sell, and trade cryptocurrency. It’s not necessarily where you must hold your cryptocurrency.
Public and Private Keys Explained
You can place your cryptocurrency in a wallet directly from the Swyftx exchange. The wallet holds the public and private keys.
The public key is an alphanumeric code which others can know and use to send cryptocurrency to your wallet.
On the other hand, the private key is an alphanumeric code that only the owner of the account is supposed to know. The private key is the secret backend code. The account owner uses it to unlock a digital wallet. The private key is always different from the public key. It is nearly statistically impossible to guess the private key.
An easy way to think about this is to compare it to a post office box. The public key is like the address to the mailbox. Anyone with the address (public key) can send a letter (cryptocurrency), but only you with the key to the mailbox (private key) can retrieve the letters (cryptocurrency).
A Brief Evolution & History of the Crypto Wallet
The blockchain wallet has transitioned greatly from where it started to where it is now. Although exchange security maintenance has evolved to become more secure, as we mention early, offline wallet storage is the most recommended.
Now we’re going to discuss a little bit about the history of cryptocurrency wallets.
The first known wallet created by Satoshi was called the Bitcoin-Qt wallet. Released in 2009, the private keys for the Qt wallet were stored on a user’s desktop. The wallet was technically developed by the Bitcoin Foundation, and serves as the “official” client on the Bitcoin network. The wallet can also be used as a server utility for merchant payment services.
The first wallet version was a full client. It required downloading the entire blockchain and waiting for the history to be synchronized to your computer. Can you imagine having to download an entire full client of a blockchain whenever you wanted to store your Bitcoin? It served its purpose(s), chiefly sending money and generating wallets. Comparing that model to later cryptocurrency hardware wallets is like night and day.
In 2014, the Ledger Nano delivered its first model to Bitcoin users around the globe on a USB-drive product. In the following years, other wallets such as Trezor and Exodus became household names for cryptocurrency enthusiasts. Wallets were said to evolve even further with the creation of Mist, which allowed storage and sending of all ERC20 compliant tokens, but also other smart contract functions as well.
Types of Crypto Wallets
There are dozens of different types of blockchain wallets that are available today. The ideal wallet for every user can vary depending on a user’s specific needs and preferences. In this next section, we discuss the wallet types to help you determine what the best one is for your specific needs.
Hot Crypto Wallets vs Cold Crypto Wallets
Hardware wallets and paper wallets are sometimes classified in the cryptocurrency wallet category as either “cold storage” (offline) or “hot storage” (internet-connected). Cold storage diminishes your exposure to the vulnerabilities that online asset storage is susceptible to.
A major benefit of cold storage is private key maintenance and ownership. Otherwise, exchanges hold the keys to your crypto all in the back end. While clicking around on a website may be easier for you to maintain then having to safely store the private keys yourself, the allowance of third party key storage is not as safe for long-term holding.
Although Swyftx places a lot of time and effort into our security, we still recommend that you have an offline wallet like Ledger Nano that compliments your Swyftx account!
Desktop Wallet & App Wallets
The major difference between app wallets and desktop wallets is that desktop wallets cannot typically be taken on-the-go with the users. On the other hand, app wallets go with you wherever your smartphone goes… which is everywhere.
Desktop wallets are the oldest form of hot wallets, and as a result they are still quite popular. For some people, their first cryptocurrency was held in a desktop wallet, and for one reason or another, they have never moved it to another wallet.
For others, they prefer the added security of storing their private keys on their computer’s hard drive instead of relying on an exchange for key hosting. Many of the organizations that created and maintain the code behind their cryptocurrencies have their own native desktop wallet.
As the smartphone market continues to grow alongside the cryptocurrency market, the demand for wallet apps will also rise. Instead of having one native wallet for each cryptocurrency, many of these wallets are able to hold multiple cryptocurrencies at once.
A popular app for storing cryptocurrency is the Swyftx wallet, available for iOS and Android. The wallet gives you not only the ability to securely store your Bitcoin, Ethereum, and Litecoin, but over 100 other cryptocurrencies in total. Download the app today to get access to Australia’s Highest-Rated cryptocurrency exchange, according to Trust Pilot.
A 2019 New York Times article estimated that about 20% of all Bitcoin is lost or unrecoverable. A large number of these unrecoverable accounts are due to losing the private keys to a wallet. It is impossible to know exactly how many Bitcoins were lost due to physical damage.
With that said, one of the original methods for cold storage of private keys was a paper wallet. A paper wallet is stored offline, literally hand written on a piece of paper or printed from a computer. Paper wallets are completely different from hot wallets because they are not connected to the internet.
Instead of the private keys being held and accessed from a third party, the user directly enters the private key by retyping it into the transaction’s code. Considering that the private keys are the one and only way of accessing cryptocurrency, writing the key on a piece of paper could be one of the least secure ways of storing it. Paper is easily damaged, via fire, water or even just crumpling. While it is not connected to the internet, paper wallet storage is risky because it’s susceptible to the elements.
However, the concept behind the paper wallet itself is the most offline and most inaccessible way to store your wallet keys. A natural evolution was bound to occur. It took the form of steel wallets. Using the same concept as writing on paper, the private key is stamped onto a piece of steel by the user, thus creating an indestructible offline storage method. The stamped steel can be secured somewhere such as in a safe deposit box at a bank.
A hardware wallet is essentially a digital upgrade of the steel wallet. Hardware wallets are tiny USB devices (like the Ledger Nano X) that stores and separates your private keys from the web. Private keys are encrypted into a small, USB hard drive.
Ledger Nano S and X
When it comes to the best cryptocurrency wallet in Australia, we are personally big fans of the Ledger Nano S and X models. Just as we discuss here in our Help Center, the strongest type of storage you can have is offline storage. We recommend that all of our users have an offline wallet like one of the Ledger Nanos.
Some of the Ledger Nano X features include:
- Up to 100 coins
- USB type-C connector
- Wired + Wireless connections
- 100 mAh battery
- Pin Protected with a backup
The cheaper Ledger Nano S includes:
- Support for up to 18 coins
- USB type-B connector
- Wire connection
- No battery
- Pin Protected with a backup
Benefits of Blockchain Wallets
The two largest benefits of a hardware cryptocurrency wallet compared to exchange storage is that hardwallets are not connected to the internet, and hardware wallets give you key ownership. An offline wallet that can safely store your Bitcoin away from hackers is the best place for long-term storage.
If you are just looking to make day-trades, obviously holding your crypto on a safe exchange like Swyftx makes more sense.
Pros and Cons of a Crypto Wallets
As mentioned above, the biggest pro of a crypto wallet is the fact that you get to maintain ownership over your private keys, and that you can store those keys offline. Private key ownership delivers users the utmost autonomy in controlling their cryptocurrency stash.
Another benefit of having a crypto wallet is the great convenience that comes with it. Depending on whether your preference is to take your crypto with you on the go, or leave it at home on your desktop, crypto wallets are convenient.
The biggest con of a crypto wallet is arguably the fact that some wallets are “hot,” which as you know by now, means that the wallet is internet-connected. Hot wallets may leave your private key exposed.
Frequently Asked Questions
What is a crypto wallet?
A cryptocurrency wallet is a software program or device that stores your cryptocurrency. Crypto wallets can be offline, online, or on a seperate, physical USB-device. Some of the most popular choices for cryptocurrency wallets include the Ledger Nano S and X. Learn more about how to set up a Ledger Nano S and X right here.
How to get a crypto wallet in Australia?
In order to get a crypto wallet in Australia, you may need to verify some basic information with an exchange. Typically that includes a driver’s license, passport, and other identifiable information. Once you verify yourself with an exchange like Swyftx, then you’ll be all set to buy, sell, and trade cryptocurrency as you wish!
You can purchase a crypto wallet on the Swyftx exchange store today.
How to use a crypto wallet?
The way a person uses a crypto wallet depends heavily on the type of wallet they have. Although unlikely for a cryptocurrency wallet in the year 2020, a person can have a full client server like the early Bitcoin-Qt wallet. This wallet type requires the full Bitcoin transaction history to be uploaded onto a server. However, more common in 2020 is the USB-style wallet like a Ledge Nano that is convenient, secure, and compatible with up to 100 cryptocurrencies.
Are crypto wallets safe?
The safety of a crypto wallet depends heavily on the user. If you are using the hot wallet such as one held on a mobile app, then you are being less safe with your money than you would be if you were to use cold wallet storage.
Can I have a multi coin wallet?
The amount of coins that any particular wallet may hold will vary depending on the type of blockchain wallet you have. Even within the same company, different wallet models will hold different coin amounts. For example, although the Ledger Nano S and the Ledger Nano X both contain multi coin wallet features, the Ledger Nano X allows for up to 100 coins, whereas the Ledger Nano S allows up to 18 coins.