BlueWallet Review

If you're a holder of the so-called digital gold, aka Bitcoin, you might be wondering where you can safely store it. So, in this BlueWallet review, we'll explore a potential option that can help you manage your Bitcoin with ease.

Launched in 2017, BlueWallet is a non-custodial software wallet specifically designed for Bitcoin users. It brings a range of features to the table, including Lightning Network integration, multi-wallet management, and batch transactions.

Perhaps you're wondering, is BlueWallet really safe and worth using? Or should I stick to time-tested cold wallets like Ledger Flex or Trezor Safe 5? I’ve spent some time trying out the wallet to help you answer these questions. So, let's dive in and see what it has to offer.

What is BlueWallet?

Before diving deeper into this BlueWallet review, let’s start by covering some essential background details about the wallet.

BlueWallet was developed by a small team: Igor Kosakov, Nuno Coelho, and Marcos Rodriguez during the 2017 cryptocurrency boom. At that time, the founders faced the challenge of finding a Bitcoin-only wallet that would give them full control over transaction fees. In response, they decided to build their own solution, and BlueWallet became one of the first wallets to focus exclusively on Bitcoin.

BlueWallet has been designed to grow with users as they become more familiar with cryptocurrency security.

For more advanced users, BlueWallet offers features like a watch-only version and multi-sig setup, allowing greater flexibility in managing your Bitcoin. The developers are committed to making the wallet feature-rich, adopting a "for Bitcoiners by Bitcoiners" philosophy. Following a community-driven approach, the team actively seeks user feedback to guide future improvements and updates.

BlueWallet also prioritizes accessibility. To ensure that as many people can use the app, it is available on iOS, Android, and macOS. Additionally, the app supports over 30 languages, including English, Chinese, Japanese, Portuguese, Spanish, Indonesian, and Turkish, making it easy for users worldwide to access the wallet in their preferred language.

BlueWallet Review: PROS

Keeping my intro to the wallet in mind, the big question remains: is BlueWallet safe? Let’s closely examine its security features and other aspects. By the end of my BlueWallet review, hopefully, you'll have a clearer picture to decide whether it is the right choice for your needs.

Innovative Security Features

Naturally, security is one aspect users pay extra attention to while browsing through user BlueWallet reviews. Well, after trying out the wallet myself, I can say that the app is committed to providing Bitcoin enthusiasts with diverse security features.

So, those still wondering if BlueWallet is safe can have peace of mind. The app has implemented robust safety measures to protect not only your private information but also your funds. Let me walk you through them slowly.

First, BlueWallet comes with a multi-signature (multi-sig) feature that enhances the security of Bitcoin transactions. In BlueWallet's terms, this multi-sig setup is referred to as a "vault," offering added protection by requiring multiple signatures (private keys) to approve a transaction.

One of multi-sig's standout aspects is the flexibility in setting up personal vault wallets. By default, users can create a 2-of-3 multi-sig setup, meaning two out of three keys are needed to authorize a transaction.

Besides multi-sig, BlueWallet includes a "watch-only" feature, allowing you to monitor the balance and transactions of a Bitcoin wallet without accessing its private keys. Watch-only is especially useful for those who store funds in cold wallets and want to keep tabs on their balance while maintaining high security.

Setting up a watch-only wallet is simple. Users can import an extended public key (xPub) from an existing wallet. The xPub key enables BlueWallet to generate all associated addresses and track balances without needing access to private keys.

This way, you can easily monitor your cold wallets without frequently connecting them to the internet, reducing security risks while keeping an eye on funds.

Another noteworthy security feature, often highlighted in user BlueWallet reviews, is its Plausible Deniability option, designed for situations where users may be forced to reveal access to wallets.

This feature is simple yet clever: you can create a fake wallet with its own password. If the user is ever in a situation where they need to give up access, they can provide the password to this decoy wallet, which will display a different balance and transaction history that does not reflect their real holdings. It's an extra layer of protection against potential threats.

On top of all the features I've mentioned, the app's commitment to security and transparency is demonstrated by its open-source nature, as often highlighted in user BlueWallet reviews. Its code is freely available on GitHub, allowing anyone to review or audit it for vulnerabilities. Security experts, if they pass by, can even improve or even build upon it.

And for those looking to heighten control over funds, BlueWallet is compatible with PSBT (Partially Signed Bitcoin Transactions)-enabled hardware wallets like Ledger Nano X. This integration lets users manage Bitcoin securely while adding extra protection through hardware-based storage.

So, answering whether BlueWallet is safe, I'd say it is, as far as software wallet safety goes. However, since it's a hot Bitcoin wallet, its security still doesn't quite match the offline standards of cold wallets.

Manage Multiple Wallets in One Place

Do you remember when I mentioned multi-wallet management at the beginning of this BlueWallet review? The fact that you can create multiple wallets is an advantage I'd like to highlight.

You may have heard of the watch-only wallet, but there are more variants, like the powerful Lightning Network wallet. These different types of wallets bring distinctive functionality to the table, so you can pick and choose based on your needs.

The Lightning Network wallet, for instance, enables seamless, fast transactions by connecting to the said network. I'll explain this further in the latter part of my BlueWallet review.

What's nice is that BlueWallet offers the flexibility of importing wallets from other platforms like Electrum or Bread. So, if you're already storing Bitcoin elsewhere, you can manage your other account under BlueWallet's centralized ecosystem.

To import a wallet from Electrum or Bread, users typically need its seed phrase or extended public key (xPub). By providing such information, BlueWallet can generate addresses and balances linked to the imported wallet, allowing you to access and manage funds without hassle.

What’s more, BlueWallet preserves the security of wallets like Electrum and Bread while providing access to extra functionality. For example, users managing imported wallets can take advantage of BlueWallet’s multi-sig support, enhancing security. Apart from that, you can customize transaction fees, saving costs along the way.

In short, BlueWallet makes it easy to manage Bitcoin wallets in one place, whether newly created within the app or imported from other platforms.

Easy-to-Use Interface

After spending some time with the wallet, one thing that stood out to me, and is often highlighted in user BlueWallet reviews, is how easy it is to navigate the app.

The platform has a clean, minimalist design that keeps things simple and free of clutter, making it easy to focus on the essentials without getting lost in unnecessary features. This simplicity is a big plus, especially for those who want to jump right into managing Bitcoin without any fuss.

Its layout is also intuitive, allowing you to quickly access Bitcoin holdings and complete transactions with just a few taps. For those who prefer a different look, BlueWallet even includes a dark mode, which is a nice touch for users who enjoy a more muted interface, especially when using the app in low-light environments.

Setting up the wallet is just as straightforward. Whether you're using iOS, Android, or macOS, all you need to do is download the app. Afterward, create multiple wallets right off the bat. The process ensures that you can start managing your Bitcoin with ease, even if you’re new to the crypto world.

📚 Related: Best App for Crypto Trading

Managing Assets Made Easier With Advanced Features

In this BlueWallet review, it's apparent that the app is user-friendly for beginners, but what about experienced users? After all, this is how the wallet is marketed:

Powerful Bitcoin Wallet

Rest assured, BlueWallet offers advanced features and tools to further enhance your transaction experience.

First up is the batch transaction feature, allowing users to send Bitcoin to multiple recipients via a single transaction. Instead of executing separate payments for each recipient, BlueWallet combines all the payments into one transaction and broadcasts it to the Bitcoin network as a unified operation.

Batch transactions can be a huge time- and cost-saver, as users only pay one on-chain transaction fee rather than multiple ones. It also reduces the hassle of managing individual payments, making it ideal for those who regularly send Bitcoin to multiple addresses.

Furthermore, if you’re concerned about privacy, BlueWallet supports connections to personal or third-party nodes. Advanced users can link BlueWallet to a personal Bitcoin node or use services like the Electrum Personal Server (EPS). This way, you can independently validate transactions without relying on BlueWallet's default servers or any other third-party infrastructure.

Another feature advanced users would appreciate is Coin Control or Unspent Transaction Outputs (UTXOs) management. Allow me to explain this concept a bit. Bitcoin transactions, as we all know, operate differently from traditional bank transfers.

So, instead of using a simple account balance, each Bitcoin transaction generates "outputs" that remain unspent and can be used in future transactions. These UTXOs are like the changes you receive from your cash transaction, which can be used in later payments.

With BlueWallet, users can manually set the amount of coins (UTXOs) they want to spend. Instead of an automatic process that can lead to added bloat, you can select larger UTXOs or fewer outputs, reducing the data size of your transactions and lowering transaction fees.

It's clear that UTXOs set BlueWallet apart from others, resulting in more effective transactions in terms of volume, costs, and privacy.

Lightning Network Integration for Faster Transactions

Earlier in my BlueWallet review, I briefly mentioned the Lightning Network integration as a standout feature. To fully grasp how it helps users transact more efficiently, let's first understand what the Lightning Network (LN) is.

LN is a second-layer payment protocol built on top of the Bitcoin blockchain. It allows two users to create a payment channel, acting like a private ledger where they can transact without recording each transaction on the Bitcoin blockchain. This off-chain system processes transactions almost instantly and at a lower cost, avoiding the need for every transaction to be confirmed by the network.

With BlueWallet, users can create dedicated Lightning wallets that are separate from their regular Bitcoin wallets. That way, you can benefit from faster and cheaper transactions through the Lightning Network.

Moreover, BlueWallet offers the flexibility to connect to LNDHub, an intermediary that enables users to leverage the Lightning Network without running their own Lightning node. LNDHub is especially helpful for users who may not have the technical skills or resources to manage a node themselves.

Now, what are the benefits of Lightning integration, and why is it such a big deal? The answer goes beyond simplifying transactions. This integration empowers users to access the full variety of apps on the Lightning-Powered App (Lapp) Marketplace. From payment services to gaming, these apps expand how you spend Bitcoin in daily life, such as paying bills.

In short, BlueWallet’s Lightning Network integration not only streamlines Bitcoin transactions but also opens the door to exploring a wide variety of innovative services. The network adds versatility to BlueWallet, making it a useful tool for anyone looking to get the most out of Bitcoin.

📚 Read More: Lightning Network: Thorough Explanation

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BlueWallet Review: CONS

Now that I've covered the key features, benefits, and feedback in user BlueWallet reviews, it's important to acknowledge the wallet's less-positive aspects, too.

Not as Secure as Cold Wallets

One of the wallet's downsides is the absence of two-factor authentication (2FA), a security feature that many users now expect as the standard in cryptocurrency wallets.

2FA adds an extra layer of protection by requiring two verification methods before granting access to your account. The first is typically your password, and the second is a code sent to your mobile device or generated by an authentication app like Google Authenticator.

In a space where hacking attempts and unauthorized access are unfortunately common, 2FA has become a staple for strengthening security. Its absence in BlueWallet is notable, especially when other hot storage solutions like Coinbase Wallet have integrated it into their platforms.

That said, BlueWallet does offer alternative security features. For instance, users can enable biometric authentication, like fingerprint or face recognition. Additionally, you can encrypt your wallet with a password. While such features add some level of protection, they don't fully replace the added security of 2FA.

So, although BlueWallet is packed with several solid security measures, the lack of 2FA may be a dealbreaker for users seeking extra assurance. Moreover, it’s crucial to remember that BlueWallet is still a hot wallet, meaning your digital assets are stored online. While the wallet does a commendable job with security, the very nature of it being online introduces potential vulnerabilities.

Since the wallet is connected to the internet, it’s theoretically more susceptible to cyberattacks, viruses, and other malicious threats.^[1] Although those risks may be mitigated with BlueWallet’s features, the fact remains that being an online wallet makes it more exposed than its hardware counterparts.

Cold wallets like Ledger Stax are considered the gold standard when it comes to cryptocurrency security. Why? Because they store your assets offline, making them virtually immune to online hacks.^[2]

	LEDGER STAX
Security Level	| | | | | Very Poor Average Excellent
2FA Two-factor Authentication
Multi-signature
Pin Code
Anonymity Level	| | | | | Very Poor Average Excellent
Backup Type	24-word seed phrase
Private Key Owner	You
Full Wallet Control	| | | | | No Partial Yes
	Visit site Read review

Table: Ledger Stax's security

In short, if security is your top concern, opting for a cold wallet offers the highest level of protection, as the only person who has access to your funds is yourself, even when you’re completely disconnected from the internet.

Now, this might make you question, is BlueWallet safe? After using it, I can say that it ranks among the more secure hot wallets, especially for everyday transactions. That said, no wallet is flawless, and ultimately, much of your safety comes down to how you manage your private keys and protect your device.

📚 Read Next: Best Cold Wallets

BlueWallet Fees

Now that I've discussed the wallet's pros and cons, no BlueWallet review would be complete without discussing the potential fees involved in using it.

First off, like most online crypto wallets, downloading BlueWallet and setting it up is completely free. The platform doesn’t charge any direct fees for executing regular on-chain transactions, which is a nice touch for users.

That said, you’ll still need to pay miner fees – the standard costs required to process and confirm transactions on the Bitcoin network. Miner fees fluctuate depending on network activity, meaning the amount you pay can vary based on current demand.

Furthermore, before confirming a transaction, BlueWallet gives users the flexibility to choose from three different fee options, depending on how quickly they need the transaction processed:

• Fast (around 10 minutes): A higher fee for quicker confirmation.
• Medium (around 3 hours): A moderate fee for an average confirmation time.
• Slow (around 1 day): A lower fee for transactions that aren’t time-sensitive.

This tiered fee structure allows users to balance speed and cost, offering flexibility depending on their needs.

On top of that, BlueWallet offers Replace-By-Fee (RBF). If you initially chose a lower fee and want to speed things up, RBF lets you increase the fee later to push the transaction through faster. It’s a handy tool if you find yourself in need of a quicker confirmation.

How to Use BlueWallet

After taking a look at the wallet’s features, let’s say you conclude your interest in having a non-custodial storage solution for your Bitcoin transactions, like BlueWallet. Then, all you need to do is create your wallet, but maybe you're unsure how to get started. Just like the wallet’s mantra, I can say the setup process is radically simple.

First things first, make sure you're downloading BlueWallet from the official website, App Store, or Google Play Store. While it’s available on multiple operating systems, I’ll be focusing on the iOS version for this guide.

And that’s it! Your wallet is now ready to go.

Pros

• User-friendly design
• Robust security
• Long battery life

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Pros

• A brand-new design
• Industry-leading security
• Coin, token and NFT storage

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Pros

• Supports 1,000+ crypto assets
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• Open-source

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Conclusion

Summing up this BlueWallet review, I'd say that the hot storage solution emphasizes user control and instant transactions with relatively low fees through its Lightning Network integration.

If you’re new to Bitcoin or just beginning your crypto journey, BlueWallet can be a solid option to get started. Its interface is clean, easy to navigate, and designed to streamline transactions. Meanwhile, more experienced users can utilize its advanced features to have a better experience while managing Bitcoin.

That said, as a hot wallet, it does come with certain risks, as it's primarily more vulnerable to online attacks compared to cold storage.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Suratkar S., Shirole M., Bhirud S.: ‘Cryptocurrency Wallet: A Review’;

2. Rezaeighaleh H., Zou C. C.: ‘Efficient Off-Chain Transaction to Avoid Inaccessible Coins in Cryptocurrencies’.