Bitcoin is thriving.
New use cases, including non-fungible assets (Ordinals) and fungible tokens (BRC-20, Runes) are gaining traction. As Bitcoin uses expand, choosing a Bitcoin wallet becomes more difficult. That’s where we come in.See what wallet features are best for collecting Ordinals, splitting Runes, and storing Bitcoin here. Otherwise, read on to learn what a Bitcoin wallet is.
Disclaimer: Magic Eden is the world’s leading NFT and Ordinal Platform. We’ve launched Magic Eden Wallet to create a seamless collecting experience across chains. This guide takes an objective look at possible features to consider when choosing a Bitcoin Wallet.
Bitcoin wallets provide a place to do transactions on Bitcoin, and manage both your public and private keys.
You will have two keys when using a Bitcoin wallet, namely a public key and a corresponding private key.
You can send and receive Bitcoin (and Bitcoin assets) through your public key. The private key controls the assets of the associated public address (key). You can read more about how Bitcoin works here.
Wallets protect your private keys, facilitate transactions and can have many security, privacy, and asset-specific features.
The best Bitcoin wallet depends on what you want to do. Below, we’ve grouped possible features by some of the most popular Bitcoin activities, from hodling to collecting Ordinals.
Segwit is an upgrade released in 2017 to the Bitcoin Network. It allows separating the “witness” and transaction data. For users, this meant cheaper transactions and increased security. To support the SegWit update, wallets must:
Ordinal Theory transformed satoshis into non-fungible tokens, creating a new asset class called Ordinals. Ordinals are Bitcoin NFTs that store their data on a single satoshi.
We've written a full guide on Ordinals here.
The right Bitcoin wallet can enhance your Ordinal experience. Look for wallets that allow you to manage, view, list, and buy Ordinals with ease.
Rare Sats (satoshis) make use of Ordinal Theory to identify satoshis with unique characteristics. Rarity is based on how many satoshis have the same attribute. There are many classifications, but the most common way to define an attribute is related to a satoshis proximity to a key event. Here’s what you should look for in a Bitcoin wallet when it comes to Rare Sats:
Runes and BRC-20s are the two fungible token standards on Bitcoin. The features below help buying, splitting, and selling Runes.
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Transaction features cover helpful utilities in managing transactions on Bitcoin.
The security features of a Bitcoin wallet are impacted by the type of wallet it is. Web, mobile, and hardware wallets each have their own set of vulnerabilities.
On-ramping features are the ways that you deposit funds to your wallet address. All wallets support receiving Bitcoin, but some wallets have additional on-ramping features.
Cross-chain features are extremely useful in simplifying asset management.
Bitcoin is quickly expanding. Each use case is best served by a different feature set. For example, Magic Eden’s Bitcoin Wallet is optimized for Ordinal collecting and cross-chain experiences. We’ve invested heavily in Rare Sat, Ordinal, and Cross-Chain features (check out Magic Eden Wallet here!).
Other wallets have different optimizations. With this overview, you can choose the best Bitcoin wallet for you, whether you want to use Bitcon for payments, storage, or collecting.
The information provided on this website is provided for general educational purposes only and is in no way financial or investment advice. Certain information may have also been provided to us or prepared by third parties; these materials are provided for convenience and are not an endorsement by Magic Eden. Magic Eden is not liable for any errors, changes or amendments to such information, including any actions taken in reliance on such information.
