What Wallet Do You Store Your Bitcoin?

[rat03gopoh]

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Yeah, and they definitely offer another depository scheme where you can passively multiply bitcoins. The way a centralized wallet works is always as profitable as it sounds (sounds like you fell in love with it). A fully decentralized, security-oriented wallet has never offered anything like this, or even talked about a future price.

If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

From the rate of return they offer, they're actually managing the bitcoins you deposit (or you can call it "holding") in a way they won't explain. They risk your money on the businesses they're involved in.

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[yudi09]

Wouldn't it be best to store the BTC in a wallet that pays high interest?

It is considered good as long as the assets in the wallet are safe and it will be a regret when the stored assets are lost and so on.
Don't joke with wallets as a place to store Bitcoin.

If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

Expecting profit when storing is not more important than security, privacy, control.
It's better to expect a return on the price than to expect a return on the interest paid.

[MusaMohamed]

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

Wallets if they are good, should an open sourced and non custodial. What does non custodial mean?

It means you own private keys and your bitcoin is only owned by you, in that wallet. The wallet software company does have access to your bitcoin as they don't own private keys. So if they don't have your bitcoins, how do they get money to pay interest for bitcoin amount you stores in your wallet?

Logically no ways to have such interest from a non custodial wallet.

If you see a wallet that provide interest, it is custodial and you have risk. You have to see what is the interest rate they promise to pay? If it is too good, higher than banks, big red flag. That wallet provider is like running a scam to steal your bitcoin or a Ponzi.

Terra, UST and Anchor provided very high APYs and they were burned.
Breaking down Anchor's 20% APY on UST
Terra APY

[gunhell16]

I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

My advice to you, it's better to just buy a hardware wallet if you have something to buy, rather than the wallet apps you mention which are under regulation. Or if you don't have anything to buy, it's better to try using a Sparrow wallet or Electrum wallet, it's both okay, just choose.

Because if you use a wallet in the exchange, the risk is a bit high, although it's okay as long as you don't enter too high an amount into the centralized exchange platform, that's all.

[Cricktor]

I'll focus on Bitcoin as does the OP. To generate interest your coins need to do some kind of work. You won't get interest simply by hodling in your own custody, at least not without doing something with them. Any other service that offers interest for your coins also has to do something with them and that's been pointed out here already. Usually you have to give up custody for your coins, let some service do something with your coins and pay you some interest for that risk. This all could go right but also the opposite could happen as shown by some examples from the past.

It should be clear by now that you don't get any interest for free.

If you strictly want to hodl in your own custody, it's your obligation to setup a secure environment, a secure computer for your wallet(s) that isn't used for everyday internet shit.
If you're not comfortable to maintain such a secure environment, a decent hardware wallet is recommended (Passport from Foundation Devices, BitBox02 from Shiftcrypto, Coldcard from Coinkite, ... (and no Ledger closed-source crap in my opinion) pay attention to transparancy of the hardware wallet manufacturer, closed-source firmware and wallets are a no-go for me and should be for you, too).

If you insist on safe self-custody and still want to explore the option to gain some interest from your hodled coins, Joinmarket could be an option which I consider rather safe. You can boost privacy of your coins if you understand the concept and you can earn some interest by offering your coins for coinjoins as a market maker in Joinmarket. I watch the Joinmarket project for a long time, understand the concept but I haven't used it yet as a market maker, simply because I have no coins to spare for it yet.
So, I can't tell from first hand experience how much the yield could be. You won't get rich for sure, but it could be better than getting nothing. And I consider it safe because you don't give up self-custody. A secure device is mandatory and I would say it's not an option for newbies. You need a good amount of understanding of basic concepts of Bitcoin.

To learn basics and more head over to https://learnmeabitcoin.com and work yourself through the pages. It's worth the efford!

[Yamane_Keto]

Logically no ways to have such interest from a non custodial wallet.

If cryptocurrency is based on proof of stake, you can get a percentage for each address you own based on how saking work in that crypto, but that percentage increases as the number of coins you buy increases, and the reason you get some return is that you venture to invest in that currency.

some POS blockchain need min amount of coins like 32 ETH and other need to have address with balance like ADA.

So yes, there are methods for staking in from a non custodial wallet
Can you staking bitcoins from a non custodial wallet? No, because Bitcoin works based on proof of work. Here you will need a third party to benefit from your bitcoins and share the profit with you.

[satscraper]

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

Nexo and other similar services that offer   interest payments  to users of their wallets are all centralized services.

This  means they have the potential  to exercise control over bitcoins stored in those wallets.

Therefore, in my opinion, storing bitcoins in such wallets would pose a risk for me.

I would not want to limit my stash by accepting any terms and conditions imposed by centralized services like Nexo.

My only choice is Passport 2, open source,  airgapped hardware wallet.

[taufik123]

Nexo and other similar services that offer   interest payments  to users of their wallets are all centralized services.

A centralized service would be a way to take away all property rights because developers have control over the wallets we use.
They have the keys and can easily freeze assets.
Or it could be a place for hackers to hack the wallet easily due to some bugs that may be available.

My only choice is Passport 2, open source,  airgapped hardware wallet.

Wallet options like Passport 2, Open Source, and water-graphed can be a good choice.
But now Trezor seems to be the recommended hardware wallet and electrum mobile wallet is also my choice.
And maybe you can make an exception for Ledger.

[Z-tight]

But now Trezor seems to be the recommended hardware wallet and electrum mobile wallet is also my choice.
And maybe you can make an exception for Ledger.

Trezor and Ledger used to be the most recommended BTC hardware wallets, but after Ledger implemented their recovery service and Trezor are implementing CoinJoin, but they are using Wasabi for it, who are working with a blockchain analysis company to blacklist certain UTXO, the recommendations on these two hardware devices has decreased. For users who may already have the devices, it may be okay to use it without opting in for their recent additions, but i think if someone wants to buy a new hardware wallet they should go for options like Passport, BitBox02, and other recommended open source hardware wallets.

[Synchronice]

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

Sometimes you can easily earn 12% and more in a single trade. You could easily buy bitcoins on exchange when BlackRock filed for a bitcoin exchange-traded fund and profit from it, then you could easily exchange your bitcoins into Ripple immediately when SEC announced that Ripple was not a security and double your coins. Do you see how easily you could double your money recently? Who cares about Nexo's 12% yearly interest.
By the way, it's very simple to understand why people don't leave their coins on exchanges and wallets, it's simply because if you don't manage the keys of your wallet, then the stored coins aren't actually yours. If you see the ToS of exchanges, for example ToS of Coinbase, you'll clearly see that Coinbase has right to block your account and/or seize your funds at any time, for any reason and they don't have to explain things to you.

So, who cares about some yearly interest when there is such a big threat on the other side? Always prioritize your wallet's safety!

But now Trezor seems to be the recommended hardware wallet and electrum mobile wallet is also my choice.
And maybe you can make an exception for Ledger.

Trezor and Ledger used to be the most recommended BTC hardware wallets, but after Ledger implemented their recovery service and Trezor are implementing CoinJoin, but they are using Wasabi for it, who are working with a blockchain analysis company to blacklist certain UTXO, the recommendations on these two hardware devices has decreased. For users who may already have the devices, it may be okay to use it without opting in for their recent additions, but i think if someone wants to buy a new hardware wallet they should go for options like Passport, BitBox02, and other recommended open source hardware wallets.

I think Trezor and Ledger were never considered as the safest option out there. they were the most recommended BTC hardware wallets because they are one of the old ones, have good marketing and are easy to use while offering a lot of altcoins. I think that's the only reason.

[blue Snow]

Many people misunderstood the meaning of Bitcoin wallet (because they are familiar with the exchange and consider the same with bank account)

I have to tell you if a real Bitcoin wallet is actually just storing your key. A wallet is not like a bank account which the sign does not by yourself.

In this case, we don't need that (wallet) if we can keep it offline.  so, if we can sign the transaction using pen and paper, better to do that (don't spend your money to buy hardware wallet).
do not worry about broadcast (where need it online), because we can use Explorer where an open service to out raw transactions in hex format.

[witcher_sense]

Many people misunderstood the meaning of Bitcoin wallet (because they are familiar with the exchange and consider the same with bank account)

To add to that, the fact that the word "wallet" refers to at least two different things may confuse even experienced people. You can read more about this in "Mastering Bitcoin" by Andreas Antonopolous, but in a nutshel, we have "wallet" - application for managing keys and "wallet" - internal structure that allows for this management.

I have to tell you if a real Bitcoin wallet is actually just storing your key. A wallet is not like a bank account which the sign does not by yourself.

In this case you are talking about second meaning, however structure is very simple since it consists of a single private key.

In this case, we don't need that (wallet) if we can keep it offline.  so, if we can sign the transaction using pen and paper, better to do that (don't spend your money to buy hardware wallet).

It is not productive to spend time on something like manual transaction signing, it may take days, weeks, or even months.

[aylabadia05]

I keep on the desktop version of Electrum
on Mobile I use Blue Wallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

It is no better to be concerned with privacy security than to be concerned with the interest paid.
This is not a bank where we save fiat money.
It's safe to get profits because holding for a certain period of time is more effective than getting high interest payments but risking asset security.

[taufik123]

-snip-

Trezor and Ledger used to be the most recommended BTC hardware wallets, but after Ledger implemented their recovery service and Trezor are implementing CoinJoin, but they are using Wasabi for it, who are working with a blockchain analysis company to blacklist certain UTXO, the recommendations on these two hardware devices has decreased. For users who may already have the devices, it may be okay to use it without opting in for their recent additions, but i think if someone wants to buy a new hardware wallet they should go for options like Passport, BitBox02, and other recommended open source hardware wallets.

I think Trezor and Ledger were never considered as the safest option out there. they were the most recommended BTC hardware wallets because they are one of the old ones, have good marketing and are easy to use while offering a lot of altcoins. I think that's the only reason.

The declining recommendations on both Hardware wallets Trezor and Ledger did give a bad rating to both.
But Ledger is the worst at the moment with its Recovery feature that even it is widely opposed by crypto users.
 
About Wasabi's implementation on Trezor, I haven't studied it in detail and still have little knowledge about it.

Ledger is currently Close Source and Trezor is Open Source.
It is just a matter of choosing which one to use and there are many more Hardware wallets to choose from.

Source: https://thebitcoinhole.com/

I keep on the desktop version of Electrum
on Mobile I use Blue Wallet.

I also use the Electrum Mobile Wallet and it's still working well.
I also used Blue Wallet at first, but I found Electrum more convenient so I left Blue Wallet (everyone has different experiences).
Blue Wallet also closed the LN Channel.

[Z-tight]

About Wasabi's implementation on Trezor, I haven't studied it in detail and still have little knowledge about it.

The main message is that Trezor is using zkSNACKs coordinator to run their CoinJoin, and we all know that zkSNACKs coordinator is pro-censorship because they partner with blockchain surveillance companies to blacklist certain UTXO from their CoinJoin feature. Meaning that there is no privacy for people that will use CoinJoin on Trezor because the fee they pay would be used to fund the company that will first of all spy on their UTXO, before they would either be allowed or rejected from using the CoinJoin service.

You can read some of it here: https://blog.trezor.io/coinjoin-privacy-for-bitcoin-11aaf291f23

[coinwalletonline]

I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

online is not a good choice

[internetional]

One more aspect.

Storing coins at individual addresses is a short-sighted solution.
The more popular Bitcoin becomes, the more people will want to transact.
The greater the demand for transactions, the higher the competition for space in a block.
The higher the competition for block space, the higher the fee.

And since banks, central banks, and governments are pushing more and more people towards Bitcoin through their actions, sooner or later each of us will face the situation where we'll have to assign a fee for transferring coins from our address that we simply can't afford. It makes sense, as long as this hasn't happened yet, to move your coins into Lightning Network payment channels. There, fees don't increase as the network grows. In fact, quite the opposite:
the more nodes, the more routing paths, and the more competition among nodes to participate in routing;
and the higher the competition, the lower the routing nodes’ fees.

[Cricktor]

<snip>

I don't think it is that easy with Lightning Network fees as you put it. And as Lightning Network is still in much more development than the main layer, I'd be careful to lock a lot of money in Lightning Network. When you don't want or can't manage your own channels then most Lightning Network wallets are custodial e.g. like Wallet of Satoshi. There are of course non-custodial solutions e.g. like Phoenix which have some semi-automatic channel management by the wallet's provider (in case of Phoenix it's ACINQ).

But if fees on main layer grow substantially this will also have an impact on Lightning Network, too. And routing nodes can't go much around this when they have to open and close channels from time to time. Added cost there will have to be compensated somehow by an appropriate routing fee level. Sooner or later it will impact every Lightning Network participant.

I don't believe that routing fees in Lightning Network can stay low due to competion when in parallel main layer transaction fees grow higher than what we see currently. Routing fees will have to follow slowly the trend on main layer, maybe not to the same extend but the trend will be the same.

[virasog]

That's also my thinking before when I was still quite new to this market. But OP soon you'll understand why it is important that everyone here will tell you that it's best to hold your Bitcoin with the wallet that you're holding the private keys. Especially if the amount you've got is already a lot and already a life savings of yours. You know that these exchanges are vulnerable to dynamic changes and policies that's why you can't trust them wholly with your funds thus, the worst comes and they get hacked and you have no assurance you'll receive a full refund.

Yes, if you are holding the wallet where you have access to the private key then for sure you are better than keeping your coins on exchanges or any other wallet where they do not give you access by username and password.

However, still, you need to choose the best wallet like in my point of view, electrum is my favorite wallet and I don't trust the Trust wallet and here both of these wallets give you access to private keys.

If for any reason you do not have a hardware wallet, I will only prefer the Electrum desktop version to store my bitcoins BTC

[Z-tight]

However, still, you need to choose the best wallet like in my point of view, electrum is my favorite wallet and I don't trust the Trust wallet and here both of these wallets give you access to private keys.

If for any reason you do not have a hardware wallet, I will only prefer the Electrum desktop version to store my bitcoins BTC

Electrum is a good BTC wallet, it is open source and a self custody wallet, but it is a hot wallet and should not be used to store a large amount of BTC, Electrum should only be used in place of a hardware wallet or other cold storage solutions if it is run in an air-gapped device. Setting up an air-gapped wallet may be difficult for a newbie, but it is a cold storage solution for people who know how to set it up and probably can't get a hardware wallet. Take note that even if a wallet gives you your seed phrase and private key, it doesn't simply mean that it is safe to store any amount of BTC in it.