Investing in cryptocurrency is an excellent way to diversify one’s investment portfolio. This is due to crypto’s potential for high returns, as demonstrated by the Bitcoin boom in the last decade.
Crypto’s decentralization also shields it from the vulnerabilities of traditional financial institutions. However, the main concerns with this investment relate to security and convenience.
Blockchain networks can be complicated for many, and they are susceptible to cyberattacks. These challenges can be mitigated by using a reliable digital wallet, which can safeguard and enhance accessibility to cryptocurrency assets.
Below are the factors users should consider to choose a reliable mobile crypto wallet:
Security Features
In 2023, cryptocurrency users lost $1.7 billion to cybercriminals. Although a sharp decline from $3.8 billion in 2022 and $3.1 billion in 2021, the figure still reflects a worrying trend.
For this reason, security features should be a top priority when selecting a mobile crypto wallet. Look for digital wallets that support multi-factor authentication, such as biometric verification and multi-signature options, as well as those with strong encryption protocols to safeguard private keys.
For example, Coinbase Wallet employs secure enclave technology alongside biometric recognition for heightened security. Ledger Live wallets are matched with Ledger hardware wallets, meaning the user physically interacts with the Ledger hardware wallet to confirm a transaction.
This is usually done by pressing a button or entering a PIN. Trust Wallet enables users to store private keys locally on their devices. This provides complete control and security. They also offer encryption protocols and server-side infrastructure to mitigate potential cyber threats.
Supported Cryptocurrencies
When choosing a mobile crypto wallet, another main factor to consider is the intended purpose. Note that it’s impossible to find one wallet that supports all blockchains, cryptocurrencies, and tokens.
Some digital wallets may only support popular blockchains such as Bitcoin and Ethereum. Others may offer a wider selection, including less popular altcoins. Others may even offer less-known blockchains and cryptocurrencies.
For example, Trust Wallet offers a vast array of cryptocurrencies and tokens. These include mainstream cryptocurrencies such as Bitcoin, Ethereum, and Litecoin and tokens such as ERC20 and BEP2.
Wallets such as MetaMask and Keplr are designed specifically for Web3 applications on Ethereum and Cosmos blockchains, respectively.
This makes them ideal for DeFi or NFTs. Other wallets, such as Edge, support a variety of blockchains but don’t offer all Web3 capabilities.
Digital Wallet Fees and Costs
Mobile crypto wallets are generally free. However, they charge transaction fees for sending and receiving assets. The fees vary depending on the wallet and are subject to change depending on network congestion or market conditions.
Users should research these fees due to their impact on the return on investment. Some wallets also require users to hold a certain amount of the wallet’s native token in order to access certain features.
Others, such as ZenGo, Coinbase, Exodus, and Trezor, may charge a subscription fee for premium features. These include:
- Additional layers of encryption
- Biometric authentication
- Hardware wallet integration
- Premium customer support with faster response times or dedicated support channels
- Portfolio tracking and analysis tools
Development and Support
The cryptocurrency space is ever-evolving to accommodate new blockchains, tokens, and use cases. As a result, many smaller wallet providers may not have the resources to support ongoing development and maintenance.
Outdated or abandoned wallets are a risk to users’ assets as they are more susceptible to cyberattacks and an inconvenience as users have to transfer their assets.
Reliable wallet providers are the ones with dedicated developers providing timely updates. They should also have active customer support and community to help users with bugs, updates, and troubleshooting.
Reliable digital wallets that have been active in the market for several years include Ledger Live and Trust Wallet. Both have a strong track record of continuous development, regular updates, and active customer support.
Reputation and Reviews
Technical features and fees may not be sufficient for thorough due diligence. As such, users should look into a wallet’s reviews from other users.
This can provide some insights into security, functionality, and customer service, which may prove challenging to assess through specifications alone. Forums such as Bitcoin.com Forum, Cryptocurrency Reddit, and Bitcointalk can help with this.
Users can also rely on Trustpilot, App Store, and Google Play for customer reviews.
The Importance of the Crypto Buying Process in Enhancing Security and Convenience
A digital wallet only safeguards and provides convenience for the accessibility of assets after acquisition. It’s worth noting that cyberattacks also occur during transactions, and the most complicated technicalities are also during this stage. As such, users should put a lot of consideration into how they buy cryptocurrency.
Cryptocurrency ATMs have an easier learning curve due to their similarities with traditional fiat ATMs and acceptance of cash transactions. They are also convenient as they are located in public places and support credit/debit cards and cash.
Buy and Sell Crypto Safely With CoinMover
CoinMover is a registered cryptocurrency ATM operator with the U.S. Treasury. It is fully compliant with federal and state regulations, ensuring secure and convenient buying and selling of cryptocurrencies.
Find a CoinMover ATM near you to transact cryptocurrencies securely and with ease.