What Are The Best Bitcoin-Only Wallets For Self Custody?

In the last century, centralized custodians have grown to dominate the financial industry. We rely on them to handle our everyday spending and saving, but history has proven time and time again how these custodians have abused that authority.

Bitcoin’s fundamental breakthrough is that it enables individuals from anywhere around the world to take self custody of their wealth and truly own it themselves, with no middleman involved.

Bitcoin essentially grants property rights to people, without any legislatures having signed that right into law. And given the fact that bitcoin is easily and globally accessible, billions of people who have never enjoyed the luxury of owning much of anything, can now take control of their own financial futures.

A diverse spectrum of custodial and non-custodial Bitcoin storage solutions have emerged since bitcoin’s inception, and everyone will develop their own preferences over time as to how much custodial exposure they want to have. But the key here that separates bitcoin from a failed experiment and revolutionary technology is the ability to take self-custody.

Despite there being plenty of self-custody devices on the market, they’re not all created equal.

Why Bitcoin-Only?

The core reason why Bitcoin-only hardware wallets are a good idea for storing your bitcoin is because of the complexity that they lack.

Unlike most general cryptocurrency wallets, which constantly push out new updates, support for new tokens, and other fancy new features, bitcoin-only wallets strip away the additional complexity to simplify the wallet’s focus: keeping the holder’s bitcoin secure.

Adding extra bells and whistles for the sake of having a more “capable” device does not necessarily enhance its value, and certainly not its security.

In May 2023, Ledger, the most popular cryptocurrency hardware wallet on the market, tried to push a “Ledger Recovery” service update which would enable a recovery mechanism within the wallet to retrieve its seed phrase in case the holder loses it. To achieve this, Ledger splits the private key into three encrypted shards, each of which is held by a separate custodian.

This potential “upgrade” raised countless red flags across the community:

• Storing your seed phrase with custodians is the antithesis of what makes bitcoin so revolutionary. The discovery was figuring out how to make reliable peer-to-peer payments online, so reintroducing a custodian to manage funds for you means you won’t have access to the financial sovereignty that bitcoin enables.
• Handing over a seed phrase or any part of a seed phrase exposes your holdings to major counterparty risk or brute force attacks.
• Seed phrases are supposed to never be able to leave their hardware devices by design. If Ledger even has the ability to push an update like this, it raises major concern as to whether or not this mechanism has been possible (if not already implemented) all along.
• Ledger is also closed-source software, intensifying the risks of all the above.

Finally, Ledger decided to push the update back after huge community backlash. But this example just goes to show how skeptical you must be when searching for the right hardware device.

Ledger, as well as the other top dog in the cryptocurrency wallet market, Trezor, have experienced customer data leaks in the past, which certainly doesn’t help to promote security for those in the market.

So, to avoid potential attacks from third party assailants, Bitcoin-only wallets keep things simplified to ensure that security remains at top of mind.

What To Look For In A Bitcoin-Only Wallet

When looking for the right Bitcoin-only wallet, be sure to keep these factors in mind:

• Company reputation: In the world of cybersecurity, reputation is, unsurprisingly, crucially important. Though cases of personal information leaks don’t necessarily affect Bitcoin seed phrases, companies responsible for building effective hardware devices should first have their own security systems in line if they want to keep customers at ease too.
• Device features: For your own needs, you may want specific implementations, such as air gapping or multisignature (multisig) functionality, so be sure to keep in mind what each product is offering. At the same time, you don’t want a device to come with too many features, to the point where it could potentially introduce new security gaps.
• User experience: Different devices employ different security mechanisms that may affect how easy or hard it is to use your hardware device. Make sure that you choose an option that feels suitable to your needs.
• Design: You don’t want something that’s cheap, going to break easily, or otherwise be rendered useless due to a careless mistake. Invest in something robust, portable, and durable to keep in line with proper cold storage principles.
• Compatibility: Certain hardware devices may include extra software that’s only available on certain platforms (Windows, macOS, Linux, Android, iOS), so keep that in mind when picking a wallet that works with your other devices (if you so choose to use them – which certainly isn’t required with any of the upcoming hardware devices).

There may be other personal preferences you have regarding how you’d like to take self-custody, so be sure to review all your options and pick what’s best for you.

Top 10 Best Bitcoin-Only Wallets

Here’s a list of the some of the most popular Bitcoin-only wallets available today, broken down into hardware and software wallets:

Bitcoin-Only Hardware Wallets

Hardware wallets are arguably the most secure way to store your bitcoin. Besides protecting your private key, hardware devices go the extra mile of security by enabling you to air gap them completely from any external devices, ensuring you don’t fall victim to any online attacks.

ColdCard

Coinkite’s ColdCard has established itself as a reputable Bitcoin-only brand that emphasizes maximum security above all else. Its air-gapped design means that you never have to connect it to any external device to operate. Along with multisig capability, ColdCard is an excellent choice for individuals, businesses, and all other entities.

• Pros
  • Open-source: Its transparent design allows for consistent community reviews and updates.
  • Air-gapped design: You never have to directly connect the ColdCard to the internet or other devices, reducing the need to trust the device itself or a computer used to send bitcoin transactions.
  • Physical keypad: Offers an added security layer, making certain attacks like keyloggers ineffective.
• Cons
  • User interface: The advanced features might be overwhelming for newcomers.
  • Price point: Its robust security certainly isn’t cheap. You’ll pay a premium for it as compared to other Bitcoin-only wallets, however, that may be a plus for those with more BTC to keep safe.

Blockstream Jade

A long-standing player in the industry, the Blockstream Jade is another multisig-enabled hardware wallet. Aside from unique features like QR scanning, the Jade supports Blockstream’s Liquid Network – one of several popular Bitcoin sidechains.

• Pros
  • Budget-friendly: Buying a Jade won’t break the bank, and it still doesn’t compromise on security to offer a cheaper product.
  • Diverse options: You can choose whether to run your Jade as a singlesignature (singlesig) or multisig wallet, and connect with its compatible Blockstream Green software wallet.
  • QR scanning camera: The Blockstream Jade includes a small camera on the back of the device that allows users to operate entirely air-gapped. You can even embed your private key into a QR as a backup that the Jade can scan in case you need to recover your keys.
• Cons
  • Added complexity: Enabling extra features, like Liquid Network support or QR scanning, while convenient for some, may potentially be a burden for others looking for the simplest possible device.
  • Small interface: The Jade’s interface is quite minimal, which may be more difficult to operate than a large flat keypad like the ColdCard, for example.

Foundation Passport

The Foundation Passport is a newer hardware wallet that boasts an ergonomic design and prioritizes both user experience and security. Holding a Passport feels like holding an old Nokia cell phone – only this one enables QR scanning and fully offline functionality.

• Pros
  • Air-gapped: The Passport’s QR scanning ability allows for completely air-gapped transactions.
  • Tamper-evidence: The Passport’s shipping materials include physical security seals that reveal any signs of tampering or unauthorized access.
  • Open-source software: Anyone can review the inner workings of Passport devices, promoting a transparent relationship between the company and its users.
• Cons
  • Size: Its design, while robust, is bulkier than traditional hardware wallets. It more or less hides in plain sight, masquerading as a cell phone, rather than being low-profile, sleek, and easy to stow away.
  • Price point: Like the ColdCard, you’ll have to pay a bit more for the Passport’s unique blend of usability and security.

OPENDIME

OPENDIME, referred to as the first “Bitcoin bearer instrument,” provides a unique physical Bitcoin transaction experience. It acts like cash, allowing you to pass it along to others and spend it in person. Or you can unseal it and use it for an online transaction. Either way, think of an OPENDIME like a piggy bank: You have to “destroy” it in order to spend the funds inside.

• Pros
  • Physical experience: OPENDIME embraces its physicality. You can use it as a tangible gift or as a payment method, akin to handing over cash.
  • Simplicity: It’s a straightforward design that’s easy to manage and store on a keychain if you so please.
  • Security: Its transparent production and design ensures that the private key stays safe within the device (and on your own physical backup, of course).
  • Inexpensive: Despite being secure, the OPENDIME ensures the bitcoin stored on it remains safe (excluding human error) without requiring an expensive price tag.
• Cons
  • One-time use: OPENDIME is designed for a single on-chain transaction and then “unlimited” use as cash. Once breaking the seal, you can’t reseal it.
  • Not ideal for long-term storage: Given that it’s a one-use device for smaller, intimate purchases with local businesses or friends, there are no backups for OPENDIME wallets. If you lose it, it’s gone like lost cash.

SeedSigner

If you want to mitigate as much counterparty risk as possible, the SeedSigner may be just what you’re looking for. It’s a DIY wallet, meaning that SeedSigner only provides the pieces needed to set it all up. But putting it all together is up to the user.

• Pros
  • Educational: Beyond securing your funds, the SeedSigner empowers users to build their hardware and thus gain a better understanding of each component of a Bitcoin-only hardware device.
  • Transparent: Its design and open-source software provide complete transparency for you to ensure your bitcoin lives on a secure device.
  • Customizable: Since it’s a DIY wallet, feel free to tweak it to your exact specifications.
• Cons
  • Requires assembly: The assembly process requires a bit more expertise than traditional hardware devices due to its unique design, which may not be an ideal, streamlined experience for newcomers.
  • Experimental software: SeedSigner is still in its infancy, so issues are to be expected and resolved as the product evolves over time.

BitBox02 – Bitcoin-Only Wallet Edition

Created by Shift Crypto, the BitBox02 Bitcoin-Only edition is a culmination of user feedback and improvements on the company’s former BitBox01. Tailored exclusively for Bitcoin, it offers a simple, secure experience with a basic interface and premium build.

• Pros
  • User-friendly: The BitBox has a touch-sensitive OLED display combined with intuitive software that makes transactions a breeze.
  • MicroSD backup: Unlike traditional paper backups, BitBox02 uses a microSD card for quick and easy backup and recovery.
• Cons
  • Price: Its refined features place it in the higher price bracket.
  • No bluetooth connectivity: While lacking bluetooth may restrict the platform’s functionality, others may appreciate that it removes another potential attack vector.

Bitcoin-Only Software Wallets

Other than hardware devices, which promote maximum security, software wallets (both desktop wallets and mobile wallets) are an ideal balance of security and external device connection. While they offer extreme flexibility, convenience, and ease of use when working with the internet, there’s nothing stopping you from downloading a software wallet onto a new or untampered device that’s disconnected from the internet.

They also work great as multisig key management interfaces. In this way, software wallets have a bit more versatility as compared to their hardware counterparts. Here are some of the

Sparrow Wallet

Sparrow Wallet enables a seamless desktop experience for Bitcoin storage, whether that be a singlesig or multisig configuration. Along with an open-source codebase, Sparrow’s design keeps Bitcoin first principles in mind to offer a secure desktop experience.

• Pros
  • Flexible signing: Sparrow allows you to sign transactions both online and offline to enable a truly versatile experience.
  • Fee control: You can tailor transactions to your preferences to find your ideal fee and wait time.
  • Privacy-enhancing features: Sparrow comes equipped with CoinJoin functionality and a simple UTXO management interface.
• Cons
  • Desktop-only: Sparrow is just limited to desktop devices as of now, so it may not be the best option if you’re on the move often or don’t have easy access to a computer.
  • Learning curve: There’s a lot you can use Sparrow for, but that also means there are lots of new things to learn. While you can keep operations simple, it takes some adjustment to get comfortable with desktop wallets like Sparrow.

Electrum

Electrum is one of the earliest Bitcoin-only wallets, starting back in 2011. Its lightweight design ensures quick and easy transactions, and it comes with extra security options like multisig that make it a great option for all different kinds of users.

• Pros
  • Reliability: Electrum servers are decentralized and redundant in order to prevent any downtime from affecting your transactions.
  • Add ons: If you’d like, Electrum supports third party add ons to truly tailor your software wallet experience.
  • Open-source: Electrum keeps its community happy by maintaining a transparent relationship with its software and users.
• Cons
  • No customer support: Rather than offering direct customer support, those looking for help with Electrum defer to its community for answers to their questions.
  • Too feature-rich: Some may not like the add ons and unique features you can use with Electrum as it may accidentally introduce risk that otherwise would have been avoided.

Samourai Wallet

Samourai Wallet is a privacy-focused mobile wallet with a suite of features for preserving user anonymity. Its mobile-centric design ensures that you can have access to your bitcoin and transaction capabilities wherever you are.

• Pros
  • Privacy-centric: Samourai offers additional products, like the Dojo Node, which seamlessly integrate with your wallet to enable totally private spending.
  • Fully-offline: You can spend bitcoin entirely offline by taking advantage of Samourai’s use of TxTenna, Partially-Signed-Bitcoin-Transactions (PSBTs), or by connecting your Android device to an OPENDIME wallet.
• Cons
  • Complexity: Samourai has a lot to offer, but that may not necessarily be ideal for someone looking to simplify their storage setup.
  • Android-only: Unfortunately, iOS users can’t enjoy Samourai wallet yet, which limits its widespread usage.

Nunchuk

Nunchuk is another great Bitcoin wallet that focuses on multisig functionality. You can choose a DIY approach and operate a singlesig or multisig configuration yourself, or you can take advantage of the platform’s collaborative custody model to set up an inheritance plan.

Nunchuk has adopted all kinds of privacy-focused features to protect its users, including personal server support, coin control, Replace-By-Fee (RBF), and more.

• Pros
  • Air-gapped on mobile: You can operate Nunchuk entirely air-gapped on a mobile device as long as it’s been untampered with and never connected to the internet, making for an extremely simple air-gapped custody solution.
  • User-friendly interface: Despite the extra involvement with multisig transactions, having a touchscreen interface on a familiar smartphone device makes the user experience intuitive and approachable.
  • Collaborative custody optionality: If you choose to take advantage of the platform’s collaborative custody model, you can rest easy knowing that your Bitcoin stack will find a home no matter what happens to you.
• Cons
  • Only supports USD: Unfortunately, Nunchuk’s USD-only support may prohibit people from being able to use the platform.
  • Additional complexity: The additional services that Nunchuk offers may involve more third-party intermediation than you like, so other wallets may better suit your basic singlesig or multisig wallet preferences.

As always, whatever needs you have should guide you on your path to choosing the right Bitcoin-only wallet. If you prefer to keep things simple and store your bitcoin with singlesig, a hardware device may be the best and most secure option. However, if you’re operating a multisig setup and need a bit more versatility, then consider a blend of hardware and software wallets to find the ideal balance of security and usability.

Final Thoughts

While it’s important to make the right decision for your Bitcoin-only wallet, know that there are plenty of suitable options for your needs.

If you ever decide you want to make the switch to a different wallet, plenty of privacy-protecting tools exist to help keep your bitcoin safe throughout the transfer process.

Bitcoin-only wallets are the best choice for securing your bitcoin due to their inherent focus on security above all else. They strip away the additional bells and whistles to focus on optimizing on one thing, and doing it right. Many cryptocurrency wallets exist today, but few manage to maintain their reputations and customers properly over time.

As hyperbitcoinization unfolds, it’s paramount that you seek out the best Bitcoin-only storage solution that’s possible for you. More and more attempts to strip holders from their keys will arise over the years, so always stay informed, be flexible, and adapt whenever necessary.

FAQs About The Best Bitcoin-Only Wallets

Q: What is the best private Bitcoin wallet?
A: Samourai Wallet and Sparrow Wallet are two of the most privacy-focused Bitcoin-only wallets available thanks to their host of additional privacy features like offline support, CoinJoining, PayNyms, and more.

Q: Are there Bitcoin-only wallets without fees?
A: While some Lightning wallets offer near-zero fees for transactions, most Bitcoin-only hardware devices require paying a transaction fee to transfer the BTC, since it’s moving on-chain. The fee range can vary depending on the network’s activity, so be sure to use tools like mempool.space to view more in-depth transaction data.

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