Crypto Mobile Wallets- Are they safe?

/Crypto Mobile Wallets- Are they safe?

Crypto Mobile Wallets- Are they safe? 2018-04-16T08:01:56+00:00
Crypto Mobile Wallets- Are they safe?

Crypto Mobile Wallets

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  1. What are Crypto Mobile Wallets?
  2. Pros and Cons of Mobile Wallets
  3. Parameters for Choosing a Mobile Crypto Wallet
  4. Best Crypto Mobile Wallets

Currently, the world is witnessing a revolution of its kind in the digital assets trade in the name of Cryptocurrencies. They are a virtual exchange asset seeks to eliminate the traditional methods of business transactions. It offers safety, convenience, and speed for executing the global transfer of financial assets. Cryptocurrencies are stored on wallets and today we review mobile wallets as one of the ways to store crypto.

On advanced levels, the crypto exchanges have come up with crypto mobile wallets. Having a storage and user facility for your investment in the palm of your hand is a great idea. It facilitates the integration of crypto in one’s life. If you are a proponent of the financial technology world, cryptocurrency trade is your best fit. To reap the full benefits and the convenience of decentralization of digital business, you need a cryptocurrency mobile wallet. With an Android or iOS mobile device, you are well placed to trade on the move. However, before getting more in-depth, be warned that cryptocurrency mobile wallets are the least secure forms of digital assets wallets.

What are Crypto Mobile Wallets?

Mobile wallets are cryptocurrency storage applications launched in mobile devices. Crypto mobile wallets are a convenient way of storing, sending and receiving digital assets. Android and iOS operated mobile phones are compatible with most mobile wallets applications. Two-factor authentication code protects the mobile crypto wallets. You do not have to download an entire blockchain into the mobile phone memory to utilize the mobile wallet crypto. The mobile wallets merely interact with the virtual copy of blockchain using Simplified Payment Verification (SPV).

How do They Work?

Mobile wallets work in two significant ways:

  • As a coin storage facility

The wallets store crypto coins on your phone. The storage allows easy access and utilization of the tokens in retail stores which accept digital assets. To execute such payments, mobile crypto wallet owners capture the QR codes on camera and scan them to acquire the payment address.

  • To gain accessibility

Other than the mobile wallets offering storage and usage of the crypto-coins, the apps also allow users to monitor their token movement and balances. This monitoring is possible through the online storage serves accessed via the hot mobile wallet.

Pros and Cons of Mobile Wallets

Mobile wallets differ from other kinds of wallets. The difference is that you can use a mobile wallet on the move. It is possible to access your cryptocurrency account information without having to bind yourself to fixed equipment or location. Mobile wallets allow users to utilize the QR code scanning provision, a feature not popular with hardware wallets on online wallets. On the negative, mobile wallets are less secure compared to desktop wallets and hardware wallets and you should never store large quantities of tokens in them.

Pros

  • Convenience

The fact that cryptocurrency mobile wallets are useful regardless of place and time, it makes the wallet an incredible choice for most crypto traders.

  • Payments

A mobile wallet owner can send or receive payments via the wallet using QR code scan. However, it is advisable to use the wallet for small size transaction.

Cons

  • They are prone to breach

By and large, mobile wallets are hot wallets. The mobile device requires internet connectivity to use the app. In addition to that, many mobile crypto wallets store private keys. If a hacker cracks into the mobile software, they can retrieve your private keys. Once someone malicious gains access to your wallet, it is possible to lose all the coins instantly.

  • Loss of device

Should your mobile phone get lost or stolen, and by coincidence, your mobile wallet was without a pin, there will be a tragic loss of crypto coins if anyone found your private keys. They could easily move your cryptocurrencies. Some crypto mobile wallets offer backing up for your coins using 12-24 word phrases, these wallets are the ones you should choose.

Parameters for Choosing a Mobile Crypto Wallet

  • Security

Even though some wallets bear unique features, they may be less secure. The safety of your tokens is majorly your responsibility. You need to ensure that you don’t lose your coins or allow an intruder access your account and steal your cryptocurrencies. Before buying a wallet, vet if it has a two-factor authentication or other security encryption features.

  • Coins supported

Different mobile crypto wallets support different crypto coins. You will need to choose a wallet that allows you maximize the trading opportunities. You do not need a situation where every time you have new tokens to trade, you must acquire new wallets. Wallets outline the extent of coins they support on their platforms.

  • Fees

While some wallets charge a usage fee, others are free to use. You can confirm the fees applicable to the wallet settings. The transaction fees levied by various blockchain networks via the wallets differ. Establish a favorable wallet for your trading activities.

  • Customer support

Customer support is crucial to the operations of a wallet. The rapid shake-ups in the blockchain technology may affect usage of the wallet. Therefore, a sound customer support base comes in handy to address arising issues. Most wallets provide contact lines where users reach them in case of any queries. Outstanding wallets maintain a 24/7 customer support.

  • Community trust

User reviews on various wallets is an excellent source of information relating to the community trust. Happy customers will always rate the service provider well. Based on their comments, you will undoubtedly deduce the reputation of your potential cryptocurrency wallet.

  • Ease of use

Beginners and high rollers all-alike desire user-friendly products. This quality saves them time and lowers the likelihood of making mistakes in a sensitive project like cryptocurrency investment. One of the most competitive features among the crypto mobile wallets is the user-friendly interface. Get an easy to use wallet, and you can be sure to have a fruitful experience.

Best Crypto Mobile Wallets

Breadwallet

Breadwallet is a product of Breadwallet LLC, a company that began operation in 2013. The company is in Palo Alto, California. Breadwallet is a simple Bitcoin wallet. The open source HD wallet is available for IOS and Android devices. It is a multilingual wallet that is easy to create. It does not require any form of verification. Although the wallet is free to use, it is liable to Bitcoin network for BTC transactions only. Breadwallet is good for Bitcoin beginners since it has essential usability options. The wallet bears some degree of risk since it does not have any form of advanced security features. It does not support multi-signature protection or two-factor authentication code.

Copay

Copay wallet is a product of Bitpay. The open-source BTC storage facility requires multi-signature approval before executing a transaction. It supports only bitcoins. It is available for Android and iOS devices. The application also has a desktop version. Copay integrates multiple wallets on its platform. The wallet eradicates payment errors by use of Bitcoin Payment Protocol (BIP 0070-0073).  Users pay transaction fees for sending BTCs via Copay. The costs depend on the volume of the transaction.

Jaxx >>

Jaxx is a new mobile wallet available iOS and Android-powered devices for free. The mobile crypto wallet owes its existence to Decentral Inc. a Canadian-based technology firm. The wallet which came to being in 2014 supports Ethereum, Litecoin, Bitcoins among various cryptocurrencies. It has a user-friendly interface which allows the pairing of multiple devices. Please note that Jaxx isn’t open-sourced and requires no form of verification to operate it. The wallet has pending issues regarding its security; It is advisable to take caution while using the wallet. Jaxx provides cryptocurrency exchange services on its platform conveniently. You can reach Jaxx support team by submitting a request through their website.

Airbitz >>

Airbitz is an open source Bitcoin wallet from San Diego, USA. It has a simple interface and is accessible on Android devices. The wallet supports a wide variety of Bitcoin adoption options. Bitcoin network determines fees charged for transactions. It is argued that Airbitz is a high-ranking secure mobile wallet. It has high-level security that ensures auto-encryption and data back-up even if the server is offline. With the wallet, a user can identify merchants that accept Bitcoins for payment. For customer support, there are various alternatives on the company’s website. You can send an email to support@airbitz.co.

Mycelium >>

If you are looking for advanced privacy and security features in a cryptocurrency mobile wallet, Mycelium wallet is the answer. Mycelium Holdings LTD from San Francisco is the developer of the product. This crypto mobile wallet supports the switch between BTCs and real-world currencies. The wallet is undergoing constant upgrading in its software open-sourced program. Mycelium can blend well with a hardware wallet; this improves security for tokens. Mycellium has been tested and approved. It will soon have a blockchain-based fiat account with linked debit cards. However, it may not be the best wallet for beginners. For any inquiries contact the company through info@mycelium.com.

Freewallet

Freewallet is yet another open-source cryptocurrency mobile wallet which is supported by iOS and Android devices. The Estonian-based wallet was formed in January 2016 and belongs to freewallet.org. Cryptocurrencies held via Freewallet include BTC, ETH, Dogecoin, Monero, and Lisk. Something different about Freewallet is that it retains control of customer’s private keys. The wallet requires customer phone number and email as additional security details. In the event of loss of a Freewallet device, the owner can access the wallet from any iOS and Android device and even freeze the account. No backup is required. Freewallet has a 24/7 support team in place. For any assistance, pass a query on their website or their official social sites.

The Conclusion

Note that, no method is ultimately safe to store Cryptocurrency. Cryptocurrency mobile wallets are blooming all over, providing a variety of digital assets storage products. Hardware wallets or cold storage options are preferred when it comes to security. Online and mobile wallets, on the other hand, are good as far as convenience is concerned. Smart cryptocurrency investors combine a set of options to maximize trading efficiency and the safety of their coins. Whichever cryptocurrency wallet or storage method you use requires reliable backup mechanism. Hacking is real and can lead to devastating loss of wealth.

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