Cryptocurrencies have experienced monumental growth since Bitcoin first came into the world and turned the global finance sector on its head. There are now thousands of them out there and the number is growing all the time.
To cater to all the demand and the variety of goods and services that can now be bought and sold using cryptocurrencies as a payment method, more and more crypto wallet services have begun flourishing. Because of the nature of cryptocurrencies, it was a natural fit for them to be used via electronic platforms. Given how safe, fast, and secure these services have become, here’s a quick guide on how to use crypto wallets and some of the many popular services they may now be used for.
What Are Crypto Wallets?
In its basic sense, cryptocurrency wallets are software programs that enable users to store and use cryptocurrencies. Their immense growth and popularity now make them an ideal payment method for a variety of different services. One of the most popular uses of cryptocurrency has been seen through its use as a payment method for online gaming platforms. In fact, the fastest payout online casinos now cater to cryptocurrency payouts via crypto wallets for players that are basically instantaneous.
The revolutionary nature of cryptocurrency stems from the fact that it is an entirely digital form of money. Unlike fiat money, crypto has no tangible form and cannot be withdrawn in a traditional way like paper money can from an ATM. To get around this, crypto wallets facilitate their storage and use as a payment method, or to be bought, sold, or otherwise traded.
Even though cryptocurrency can’t be physically held, to have value, it still needs to be accessed and have a means by which ownership of that value can be confirmed and traded. The main role that crypto wallets play is, therefore, to validate transactions between users.
Despite fiat money being available to people in a physical form, digital banking is now commonplace around the world. The key difference with crypto is that its value fluctuates, and it runs entirely by these means alone. Without a safe and secure platform to process and facilitate transactions, cryptocurrency would essentially be unusable.
There is now a wide array of crypto wallets for users to choose from, and the space has turned into its own specialized industry. Some may specialize in certain currencies only, like Bitcoin or Ethereum, while others cater to a wider variety and provide greater choice. With each having its pros and cons, like any banking platform, choosing a crypto wallet should depend on your individual preferences and be a decision that works best for your circumstances.
Using a Crypto Wallet
Using a crypto wallet may seem overwhelming to someone unfamiliar to them. Given how sophisticated the concept of cryptocurrency and the underlying technology it runs on is, it’s easy to feel anxious about whether to use one. However, it’s a misconception that to trade in crypto or use a crypto wallet, one has to be tech-savvy or have specialized trading knowledge.
Their widespread use in the modern world and the ever-growing popularity of cryptocurrency have streamlined their use and made it a far simpler world to navigate. There are now a variety of digital services that give cryptocurrency owners far more control over their investments and help you track key metrics of your crypto portfolio and crypto wallet.
If you don’t have any cryptocurrency, the first step would be to use any of the crypto exchanges, sites, or apps dedicated to trading in them. Once you’ve selected and purchased some, the platform itself may offer a wallet or service, or you can simply sign up for one that caters to the particular cryptocurrency you own.
From there, the most popular crypto wallet services usually provide a quick and hassle-free process to sign up. You can do this online or by downloading an app if the service has one available. Once you’ve provided your details, the crypto wallet should provide a digital service to link to your crypto account and transfer crypto funds that will then be held in the wallet, similar to how a bank account works. If you’re registered and have your wallet topped up, you’re pretty much ready to start using your crypto wallet.
Popular crypto wallets should provide a variety of services that enable you to trade crypto, make payments to other users in cryptocurrency, or receive payments in cryptocurrency from other sources. Transactions are validated by the wallet, and since cryptocurrency uses blockchain technology, they are safe and more secure than traditional digital banking.
This is because crypto wallets utilize a public and private key. Blockchain technology works on a public key that enables transactions to be validated, so they are secure and basically immutable. Crypto wallets provide users with a private key to run their individual accounts. To access and transfer funds to and from the wallet, both keys are needed, essentially providing wallet holders with more security over transactions.
What Can You Buy With a Crypto Wallet?
Given the massive increase in the number of cryptocurrencies available now and their widespread use, more and more businesses are now accepting cryptocurrency as a payment method. Regular e-wallets like PayPal accept cryptocurrency outright so anything you can buy using a PayPal account can indirectly be bought by using a crypto wallet to top up your PayPal account.
On its own, crypto wallets can be used to pay directly for online shopping purchases. While not all online stores accept cryptocurrency, the number is growing and many major ones now accept it. Everything from clothes to jewelry and even high-end items like luxury jewelry and electronic items like cell phones, laptops, and tablets can be purchased using a crypto wallet.
Also, as mentioned, one of the most popular uses of cryptocurrency is in the iGaming industry where it’s used to facilitate payments and payouts for online gamers. Whether casino games, card games like poker or blackjack, slot machines, or sports betting are your favorite, many major online platforms accept cryptocurrency and crypto wallets can be used to facilitate these transactions.
How Payment Works
Using a crypto wallet to make payments or top up another account is usually a simple process. This usually involves the wallet or the other party generating a QR code that you scan using your phone’s camera. The process validates the account and balance and digitally makes the payment.
The breadth of use for cryptocurrency is now so wide that many physical stores are also accepting them too. Stores that offer this payment method will usually have a point-of-sale device, similar to how a card machine works, to facilitate payment from your crypto wallet. This now means that whether using your crypto wallet to make a payment online or at a physical store transactions are safe, secure, and usually instantaneous.
Safety With Your Crypto Wallet
As mentioned, transacting with a cryptocurrency is inherently safer since the blockchain validates transactions and keeps them secure, anonymous, and immutable. Safety and security with a crypto wallet are taken care of internally by the service provider. This usually means that the site or app will utilize cyber security features like firewalls to prevent hackers from accessing your account and to keep your details protected.
That being said, no online service is completely immune from cyber threats so crypto wallet holders can also play their part in ensuring the security and integrity of their account. Good online habits should be fostered, such as ensuring you have a secure password that isn’t easily guessable. Fingerprint or facial recognition locks should also be utilized wherever possible to prevent unauthorized access to your device.
Lastly, your passwords should never be given to anyone or stores anywhere where they can be accessed by others. If such measures are taken, so long as a reputable crypto wallet service is used, this innovative service makes for a great alternative to traditional e-wallet and digital banking services that are often marred by expensive fees, commissions, and waiting times.
Pros and Cons of Crypto Wallets
Pros
Crypto wallets have a wealth of benefits in comparison to ordinary banking and e-wallet services. They’re generally safer, more secure, faster, and available to access and use anywhere, at any time. They are usually also cheaper, though it should be noted that they aren’t free to use. Despite all these positives, crypto wallets do have some cons.
Cons
Crypto wallets generally run on a business model and therefore need to make money through fees charged for facilitating crypto payments. They’re also generally unregulated so it’s important to select a reputable one to use. Crypto wallet payments are generally also irreversible by design so it’s best to always be sure before making any payment. Lastly, by their nature, the value of cryptocurrency constantly fluctuates, so this means the amount you have in your crypto wallet may not always be the same.
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