The world of crypto can be overwhelming, especially when it comes to choosing a wallet. With so many wallets claiming they’re the safest or the best, it’s hard to know if they are or even if they’re being honest at all. That’s where open source crypto wallet software comes into play.
Opening up the code for scrutiny, security audits and even remixing. This openness, while being core to Bitcoin itself, also benefits the entire Bitcoin community and ensures your wallet will live on no matter what happens the company that made it.
Contents
What Is A Crypto Wallet?
Before we get into which open source cryptocurrency wallet is the best, you should know that a Bitcoin wallet is simply software that:
- Generates and manages your Private Keys, which gives you access to spend your bitcoins
- Generates and manages your Bitcoin Addresses, so you can receive bitcoins
- Creates and broadcasts transactions to the Bitcoin network so you can spend your bitcoins
They come in many shapes and sizes such as software wallets (exchange, web, desktop or mobile), hardware wallets (cold, air gaped, USB) and multisig wallets. Today we’ll be looking at both software and hardware wallets and which ones are currently (in our eyes at least) the best open source ones for storing your crypto assets.
Benefits Of A Open Source Crypto Wallet
As the software (either in the software wallet component or the firmware that runs on the hardware wallet device) plays a huge part in managing everything from private keys to transactions, it’s vitally important that you – or someone else that you trust – is able to fully inspect and verify the security of the code being run.
It’s unlikely you personally are able to read and fully understand all the code base, but security experts and other researchers that regularly review the source code for potential vulnerabilities or other nefarious issues must always have full access. Wallets that are open source or at a bare minimum have their source code fully available allow for this inspection.
This capability allows for them to be transparent and provide a trustworthy base to build up from. If they’re Full and Open Source Software (FOSS), they will also be totally free to use and customize allowing everyone to tailor it to their needs and wants.
This can lead to more advanced features being developed by the community or entirely new app platforms being supported such as on iOS devices, a desktop version or other less popular OS’s.
Specifically with Open Source software, as opposed to source viewable software, you also get other developers working on the code and integrating it into their products which further enhances security as there’s just a lot more eyes looking at and testing the code base. This is why we rate FOSS slightly higher and consider it slightly more secure than just “source viewable” (but copyrighted) code.
Top Open Source Software Wallets
Mobile Wallet
Mobile wallets that run on Android and iOS devices should only be used to store small amounts of funds. While they (generally) operate on newer, more modern operating systems that have better (general) security than desktops, the fact is they’re still mobile phones.
This means you carry them everywhere and they can be easily and quickly stolen out of your hand at any time or place, can be left behind, dropped in the toilet, on the ground or have any other number of bad things happen to them.
Storing a key to a material portion of your wealth on an online device that you regularly carry on your person is an unacceptable compromise and should be avoided at all costs!
Instead, only use a mobile wallet for small amounts of funds that are separate to your main, larger and more securely stored stash. With that out of the way, our best open source mobile wallet recommendations in no specific order include:
Desktop
Desktop wallets allow for increased security measures and generally enable more advanced security setups like multisig. Our top recommendation for an open source desktop wallet is Sparrow Wallet. It is an amazing piece of FOSS and is usable for both beginners and experts. We have a number of guides for it, but some other top picks also include:
Top Open Source Hardware Wallets
A hardware wallet is a separate, physical device that’s used to generate, store and manage your private key entirely offline, adding an extra layer of security to help protect you from threats like hacking or malware. They can take many forms including looking like USB drives, small calculators, credit cards or small smartphones.
Many mistakenly believe their hardware wallet “stores” or hold their crypto in them, however hardware wallets only store your private key. Cryptographic keys are what give you authority over your bitcoin which are actually stored on the Blockchain.
Again it’s important for hardware wallets to be open source so that everyone can openly view and inspect the code they run, the hardware they use and especially how they generate and store your private key. It’s so important that in our Crypto Wallet Rating Methodology we dedicated a full 11/50 points to the code being open and reproducible. So let’s get into our top open source hardware wallet picks.
Note: For those wondering, the COLDCARD Mk4 or Q are not included as their code is only source viewable, not open source.
Foundation Passport
The Foundation Passport is a hardware wallet made by Foundation Devices that scores top marks in all our tests. While it looks like an old Nokia phone (great for a bit of nostalgia!), it has a premium design and feel to it and can perform all functions while never being connected to a computer. It also has a companion envoy mobile app, but can be used without this for all functions if you prefer.
Highlights
- Super premium materials, design and feel
- Aces all privacy & security test we could throw at it
- 100% fully air gapped design, from seed generation to signing to firmware updates
- Beautiful design with a big buttons and a clear color screen
- Is so solid it can double as a brick to knock people out
Keystone 3 Pro
The Keystone 3 Pro is made by Keystone and is hands down the best touchscreen based hardware wallet we’ve seen in the past few years. While we’re not too excited about all their altcoin digital asset support, this can easily be side stepped by using their Bitcoin Only firmware which is great to see.
It aces every privacy and security test we threw at it, has a huge 4″ color touch display, is fully air gapped, supports microSD cards, QR code scanning, passphrases, multisig wallets and more.
It’s fully open source, has excellent seed generation and storage security and works with a wide range of third party software wallets via it’s industry standard QR code and camera functionality. While its price is on the higher side, Keystone seem to have constant sales which means you should be able to get it at discount sooner or later.
Highlights
- Super premium materials, design and feel
- Big, clear and easy to use touch screen
- Aces all privacy & security test we could throw at it
- 100% fully air gapped design, from seed generation to signing to firmware updates
- Open source software and hardware
BitBox02
The BitBox02 is made by BitBox (formally Shift Crypto) and comes in two versions, the BitBox02 Bitcoin-only edition and the BitBox02 Multi edition. While the hardware for each is identical, the Bitcoin only firmware is entirely dedicated to Bitcoin (with no support for other popular cryptocurrencies) with the Multi edition supporting other cryptocurrencies as well as Bitcoin.
It’s one of only two hardware wallets that scores perfect marks in all our tests and has support for a ton of great features. In fact, it has so many security features that we couldn’t cover them all in our review and its support for Multisig is unmatched.
Highlights
- Low key, incredibly small and stealthy design
- Aces all privacy & security test we could throw at it
- Great touch button interface and screen
- Unmatched support for Bitcoin Multisig wallets
- Simple and widely supported desktop and mobile app
Blockstream Jade
The Blockstream Jade is one of the cheapest and best crypto wallets out there that’s made by Blockstream, a veteran in the Bitcoin industry that’s been around since 2014. It’s clear right from the start that they know exactly what they’re doing with it acing all our privacy and security tests.
The only reason it isn’t the best cryptocurrency wallet on our list is because it’s missing a microSD card slot, meaning you cannot easily create a crypto wallet backup file to store alongside your seed phrase. It’s a small feature
Highlights
- Amazing value for money
- Aces all privacy & security test we could throw at it
- Supports USB, Bluetooth, air gapped and stateless modes
- Super simple interface and software
Hot Wallets Vs Cold Wallets?
| Hot | Cold | |
|---|---|---|
| Cost | Free | $50-$250 |
| Best For | Pocket Money / Quick Access | Savings Account / Long Term Storage |
| Ease Of Use | Easy | Easy |
| Security | Low: Susceptible to hackers, seizures, duress or in person attacks | Medium: Susceptible to duress or in person attacks |
| Privacy | Own Node: High 3rd Party Node: Low | Own Node: High 3rd Party Node: Low |
One of the biggest risks to keeping your bitcoins safe has always been hacking, scams or social engineering which software of all types is highly susceptible to. To help users combat this cold storage wallets were created.
Going by many names such as Hardware Wallets, Signing Devices, Cold Storage Devices, Cryptocurrency Cold Storage or Cryptocurrency Cold Wallet they all use dedicated pieces of physical hardware that generate, store and manage your private keys as well as sign transactions for you.
By separating your private key onto a physical hardware device, away from your disgustingly malware infested computer that’s running the software component, it drastically increases the security of your bitcoin storage setup.
When your private key is stored on a cold wallet, a hacker can get full control of your computer or phone and all they can do is view your wallet funds. In order to steal (or spend) your bitcoins they would need your Hardware Crypto Wallet to be plugged in and unlocked.
Then they’d also need to push physical buttons on it too somehow. This extra physical layer makes hacking attacks much harder to execute, but also decreases how user friendly the wallet is.
Advantages & Disadvantages Of Hot Wallets
Pros:
- Free, quick and easy to setup and use
- No need for a physical device to spend funds
- Great for experimentation, beginners, testing and those performing regular transactions
Cons:
- Your public and private keys are connected to the internet putting your digital assets at risk
- Absolutely not safe from hacking, phishing, malware, viruses or other cyber security threats
Advantages & Disadvantages Of Cold Wallets
Pros:
- Your public and private keys are not connected to the internet keeping your digital assets safe
- Can be completely air gapped and never connected to any computer at all if you want
- Great for storing “Savings Level” of funds
Cons:
- Costs money and requires the purchase of a hardware wallet to use
- Requires the physical use of the device every time you need to do crypto transactions
- Can be more complex for beginners and requires more research to learn about and use
Choosing The Right Crypto Wallet
One important thing to note when choosing a crypto wallet (open source or otherwise) is that the size of the funds you’re storing in it matter. If you’re storing $10.. maybe $100 then a software only crypto wallet is fine. While different amounts of money mean different things to different people, generally we recommend that you only ever keep “Pocket Money” levels of funds in a software based wallet.
Once you start approaching or get near something you’d keep in a bank account or savings account, that’s when you should be upgrading to a hardware wallet or even Cold Wallet. Here your private keys must be kept separate to the software wallet, they are generated and stored safely in a dedicated hardware device that’s got proper security and privacy built in. Holding your seed phrases in offline storage, often in a secure enclave, ensures that only you have access to them, not any hackers that may compromise your computer.
If you ever find yourself dealing with serious investments, amounts that you might find in your 401K or other significant brokerage accounts then consider learning about and upgrading to a Multisig Wallet. This not only separates your private keys away from the software, but adds multiple private keys for far superior redundancy and security. We have an entire expert series on this if you’re interested, all free.
>> Deeper Dive: Expert Cryptocurrency Security
Lightning Wallet
A final, slightly different type of wallet is the Lightning Wallet. We have a full article on what our Top Bitcoin Lightning Wallets are so feel free to check that out if that’s what you’re after. Lightning wallets need to connect back to a Lightning Node rather than a Bitcoin Node, plus they also use Lightning channels rather than the base Bitcoin layer.
FAQ
Are Open Source Wallets Safe?
Yes. As you or any security researchers can fully see and vet all the source code that’s run by open source wallets, this makes them far safer than closed source or proprietary ones. Closed source wallets have often been found to have serious bugs or security flaws that go unfixed for years due to lazy companies or people just not knowing about them.
Is It Legal To Have Multiple Crypto Wallets?
Yes. Assuming your country legally allows you to hold crypto, then it’s legal to also hold multiple types and in multiple crypto wallets too. These could be on your mobile, desktop or even in the cloud or on an exchange site with a trading platform integrated into it.
Is Metamask Open Source?
No. As per the license on their GitHub page, their code is copyright protected. Although you can see their browser based code (source viewable), it’s not open source.
Is Trust Wallet Open Source?
Yes. As per the license on their GitHub page, they use a Apache 2.0 license structure and are thus, open source.
Is Bitpay Open Source?
Yes. As per the license on their GitHub page, they use a MIT license structure and are thus, open source.
