The BlueWallet is a non-custodial bitcoin wallet with advanced features and designed with ease of use in mind.
Great for both beginners and advanced users, the BlueWallet is available on iOS and Android and has everything you need from a software wallet.
Software wallets come in handy for a couple of reasons.
First, for storing small amounts of bitcoin in.
Second, to act as an accompanying software wallet to your long-term hodling hardware wallet.
If you’re hodling bitcoin long-term (and why wouldn’t you be) most of your funds should be in a hardware wallet.
You should never keep a large amount of bitcoin in a software wallet.
BlueWallet is compatible with several hardware wallets including the Coldcard so you can connect the two to transact.
This means you get the best of both worlds – a secure hardware wallet and an easy-to-use software wallet.
What makes the BlueWallet so good? The company understand the technical and philosophical aspects of bitcoin and have built a software wallet to cater to them.
In short, BlueWallet empowers users to be self-sovereign which is the entire ethos of bitcoin.
BlueWallet is rich in features
The design of the wallet is minimalistic and on first opening you may think it lacks the features it claims.
The user experience is thought through and while it looks sparse it’s subtly packed with features to protect your bitcoin.
Below are key features of BlueWallet and why I recommend it to those new to bitcoin and seasoned veterans alike.
BlueWallet is open source software
Like Coldcard, BlueWallet makes its software open source so third parties can interrogate the code to ensure it’s safe from backdoors and bugs.
Not all wallets – hardware or software – are open source which means you’re blindly trusting the company that there are no bugs or worse.
With BlueWallet, anyone can interrogate the code to ensure it does what it says.
Desktop & mobile use
BlueWallet comes on both desktop (Mac only) and mobile (iOS and Android) providing flexibility on your preferred device.
I use it on the smartphone but have a version on my Mac in case I ever need it.
I’ve been using BlueWallet for two years and it’s impressive how regularly the new feature and fixes updates come through. Something you like to see from a software product as important as this.
BlueWallet is a bitcoin-only wallet
Like Coldcard, BlueWallet is a bitcoin-only company meaning they are dedicated to the development of bitcoin privacy and security.
This means they don’t have the distraction of trying to integrate new altcoins into the wallet. Instead, their time is focussed on innovating and improving the bitcoin experience.
You can create multiple wallets within BlueWallet
BlueWallet allows you to create as many wallets within the app as you like.
This is useful if you want to separate your bitcoin holdings into different pots. For example, having a spend wallet along with a save wallet.
You can also create different wallet types such as Lightning, ‘watch only’ and multisig (more on those below).
The Lightning Network is a ‘layer two’ payment protocol that sits on top of the bitcoin blockchain. It makes peer to peer payments much faster than bitcoin’s layer one network.
You can create a Lightning wallet using BlueWallet’s node or, if you’re more advanced, you can connect it to your own node to become your own Swiss bank.
Multisig (Multisignature) refers to requiring multiple keys to authorise a Bitcoin transaction, rather than a single signature from one key.
This adds a greater layer of security when making bitcoin transactions. If you’re transactions are for a lot of money I would recommend using it.
BlueWallet allows you to create what it calls a ‘Multisig Vault’. This is a highly secure native multisig wallet with seed phrase and partially signed transactions (PBSTs).
Keep an eye on your hardware wallet with watch-only wallets
Watch-only wallets allow you to keep an eye on your cold storage wallet (e.g. Coldcard) without touching your private keys.
This means you can store away your Coldcard is a safe place and still check the balance and the current price.
Connecting the Coldcard to BlueWallet is easy and as you can see in the video below you don’t even need a computer and can do it directly from your phone using a connecting cable.
Fee and transaction control
Bitcoin transaction fees fluctuate depending on how busy the network is. With this in mind BlueWallet provides a means to control how much you pay.
Before transacting, you’re given a fee estimation and the option to reduce or bump the fee (the higher the fee the quicker the transaction) depending on your preference.
You can also cancel a transaction if you realise you’ve made a mistake or have been scammed – a feature I’ve never seen in any other wallet.
This is bitcoin of course so you have limited time to cancel a transaction and once the first confirmation is made on the blockchain you can kiss that bitcoin goodbye.
Like Coldcard, you can create a ‘fake’ wallet within BlueWallet. Coldcard calls it a ‘duress PIN’ whereas BlueWallet calls it ‘plausible deniability’.
If you’re ever physically forced to open it you can open the fake one instead.
The app allows you to input a different password to your real one which opens up an alternative ‘fake’ wallet whereas your real holdings are kept elsewhere.
Hopefully you will never need to use this feature but it’s useful to know you have it and it illustrates that BlueWallet is considering all potential scenarios.
Why I use BlueWallet
Software wallets for bitcoin have improved leaps and bounds over the last few years.
As mainstream adoption grows and as the price of bitcoin grows, software wallets are improving both functionally and securely to cater to the demand.
With its range of features, constant updates and dedication to security, BlueWallet is my go-to software wallet for bitcoin.