What is the Best Bitcoin Wallets in Australia? (2021)
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As the value of Bitcoin (BTC) continue to climb in 2021, many Aussies are wondering how to get in on the action.
Now if you’re going to buy Bitcoin (BTC), the first thing you have to do is to set up the best Bitcoin wallet that is available here in Australia. As a savvy investor, it’s always important to establish a secure method of storing your assets.
Regardless of where you are in the world, Bitcoin is universally stored in a cryptocurrency wallet. 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 for all people.
It’s that simple. As with most things, the best Bitcoin wallet in Australia is a subjective topic. As a general overview the following are excellent candidates for the best Bitcoin wallet in Australia in 2021:
The first three are what are known as software wallets, while Trezor and Ledger are known as hardware wallets. You’ll find more details on each one below.
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 Bitcoin wallets that are accessible in Australia this year.
Crypto wallet basics: How Do Cryptocurrency Wallets Work?
In simple terms, what is a Bitcoin wallet?
A Bitcoin wallet is like a Bitcoin bank account, where you can check your Bitcoin balance with it, and it allows you to send or receive transactions. Bitcoin wallets are not region or country-specific. Wallets are international, and you do not need a specific Bitcoin wallet for Australia.
When you buy Bitcoin, Ethereum, XRP, or any other cryptocurrency, you have the option to store your digital assets on the exchange itself, known as a custodial wallet, or in your own crypto wallet, which can either be in the form of a software wallet or hardware wallets.
More on Bitcoin wallets:Read our complete guide on cryptocurrency wallets.
What are public keys and private keys?
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.
In other words, a Bitcoin wallet holds your claim of ownership to a certain amount of Bitcoin. This claim is automatically verified and supported by the Bitcoin network whenever you send or receive Bitcoins.
A private key is like your pin number, so you must keep it safe as it allows you to send transactions from your Bitcoin wallet. The public key is akin to your bank account ID; it is like your account’s reference name in the Bitcoin network. However, a public key is not the same as the wallet address.
What is a wallet address?
The wallet address is like your account number, and you can hand it over to any Australian to pay you in Bitcoin if you so wish. Technically speaking, the wallet address is a compressed version of the public key, and the public key is cryptograpically paired to the private key in order to access your account.
As you can see, Bitcoin is incredibly secure this way, and has never been hacked since it’s first existence in 2009. Amazing, right?
What is a blockchain?
You may have heard of the ‘blockchain’. The blockchain is basically just a cryptocurrency ledger that keeps track 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.
Learn more: What is Blockchain Technology?
A practical example can be found in the following video:
Spending and receiving Bitcoin
In order to access your Bitcoin and spend it, you must have access to your private key. This private key is created when the Bitcoin 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 wallet 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 to a specific wallet address.
As you can see, it’s as easy as that to send Bitcoin to your friend’s Bitcoin wallet address in Australia or anywhere in the world.
Bitcoin transactions under the hood
When this occurs, the Bitcoin network receives the Bitcoin transfer request and it is processed into the first available block on the blockchain network.
Again, the blockchain is a universal ledger. Regardless of your location in the world, you will have the same copy of the Bitcoin ledger.
Essentially, everyone in the network will recognise that you have removed 2.5 BTC from your Bitcoin wallet address on the Bitcoin ledger and added 2.5 BTC to your friend’s 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 incentivize their participation.
The best Bitcoin wallets in Australia for 2021
Bitcoin wallets come in quite a few formats with the most common being a software wallet. And Bitcoin wallets in Australia are no different from their overseas counterparts, so it comes down to personal choice.
With that in mind, below are the different types of Bitcoin wallet options that are available for Aussies.
These types of Bitcoin wallets are the most common in Australia. Software Bitcoin wallets include all downloadable wallets on both desktop computers and on mobile devices.
These downloadable Bitcoin 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 in Australia agrees upon.
Below are some suggestions for beginner Bitcoin wallets for Aussies:
Exodus is a multi-crypto user-friendly digital currency software wallet. Additionally, Exodus conveniently supports cross-platform integration so you can manage and access your digital crypto assets on your desktop computer or mobile devices.
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 downloadable Bitcoin wallet 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.
It’s important to note that unlike Exodus, Electrum is supports exclusively Bitcoin (BTC) only. That said, it does a fantastic job at securing your bitcoins with a low to medium learning curve even for new users, as well as having a reliable record.
Bread (mobile only)
The Bread Bitcoin (BTC) 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 the 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 cryptocurrency 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 cryptocurrency wallet is that the keys are not stored digitally anywhere and are therefore not subject to cyber-attacks or hardware failures. The disadvantage of this crypto 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 Bitcoin wallets are physical devices that are designed to add an extra layer of security to your crypto assets. These wallets are also known as a cold wallet because they store your assets in an offline environment, away from potential threats and malicious software.
Additionally, hardware wallets also provide the user the ability to verify transactions manually. Hence, they are regarded as the safest form of storing your crypto assets.
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 in 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. Its 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 of hardware Bitcoin wallet that is 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-color 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.
Set up your Trezor Model T: Click here for our set up guide for the Trezor Model T
The KeepKey hardware cryptocurrency 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.
Looking to buy a hardware wallet? Shop our collection of hardware wallets at Easy Crypto
I hope these reviews point you in the right direction when assessing what the best Bitcoin wallet in Australia 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 who want to learn and buy bitcoin in Australia for the first time. If you are ever in doubt don’t hesitate to contact us for advice.
More on security: Learn our tip to increase the safety of your cryptocurrency.
Frequently asked questions (FAQ) about Bitcoin wallets in Australia
A. Your Bitcoin transactions will change to the status of ‘confirmed’ when miners have validated them on the blockchain.
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.
A. Most Bitcoin wallets will notify you of your transactions in real-time. However, you can also check a transaction by copying your cryptocurrency wallet public address via a site such as Blockchain.
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.
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.
A. Most wallets will allow restoration via a ‘seed phrase’. This is a passphrase 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 your Bitcoin wallet. It is highly recommended you store your seed phrase and password somewhere extremely safe and always think about backups.
With that said, we hope this article has given you more insight into your options for storing Bitcoin. When it comes to storing Bitcoin or any other cryptocurrencies, it’s important to identify what your needs are.
If you value security over accessibility, then perhaps a crypto hardware wallet from Trezor or Ledger is the right choice. However, for those just starting their crypto journey and want more accessibility, a software wallet like Exodus is more than enough to suit your needs.
Looking for a crypto wallet? Click here to buy one from our products page!
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Last updated 16 June 2021.