What is the Advantage of Cryptocurrency Wallet?

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(Newswire.net — April 9, 2018) — The term cryptocurrency has seen tremendous growth across internet circles, and many people are beginning to show interest in this new technology. Indeed, cryptocurrency has transformed how people transact and it is now seen as the future of financial transactions, which has been described as a strong solution that combines both security and effectiveness. That is why those who have learned about the technology are going for cryptocurrency wallets.

How a cryptocurrency wallet works

This is basically a secure digital storage point for digital coins, where you can send, receive, and store coins like Bitcoin. Many different coins have their official wallets and there are also third party alternatives that are recommended by industry players. To use cryptocurrency, you need a wallet. You are assigned a private key, which is basically a secure digital code, so when coins are sent to that key the amount is deposited in your wallet. 

Benefits of cryptocurrency wallets


Those who are concerned about privacy and security will find cryptocurrency wallets a secure way to transact. The technology behind cryptocurrency is meant to provide security and anonymity, and that has been achieved quite well as you cannot easily lose your data. However, there are some parts of the technology that are public, which could include the open source ledgers that are accessible to many, but in overall scale it satisfies the need for anonymity and security in transactions. 

Sometimes you don’t want people to know about your transactions and the best way to secure yourself from prying eyes is to choose cryptocurrency. Your wallet will save you the frustrations as you will not need to provide all your personal data to be allowed to use the wallet. Your transactions cannot be monitored as all connections are anonymous. 

That is why this technology has been criticized as it could facilitate easy ways for corrupt individuals or even people who deal in terrorist activity to process their payments. There is still a lot of debate around this that you could read about to learn more about some of the weaknesses that should be addressed to make it perfectly seamless.


The basic configuration of cryptocurrency wallets is meant to provide security, but this is not to say you can use this as a bank account. Security is guaranteed as long as your usernames and passwords remain secret and are not leaked to other users, so most of the protection you need comes from your end. You can add some authentication mechanisms like the Google authenticator to ensure there are more layers of protection that could help to encrypt your wallet. 

Hacking in the banking world is a major crisis and has been happening across many institutions. This cannot be said of cryptocurrency as there is no central server that can be invaded to claim secret data of users. It is like a system suspended in the air with no defined storage point, so this makes it challenging for hackers and other people with malicious intent to succeed stealing money you have in your wallet.

Transaction fees

Banks and other institutions charge transaction fees, so when you are making many transactions in a day, it becomes challenging to save on these fees. However, the case is different when it comes to cryptocurrency as no transaction fees are included. You may be required to pay if you use third-party management services, but overall the charges are still lower than using any other payment channel. Get the best cryptocurrency wallet and you will enjoy the great flexibility and convenience the technology offers. 

Some banks will charge you upwards of 2% for transactions, and this amounts to huge sums if you calculate the amount you have to lose each year just for receiving or paying money. A wallet will save you the agony and it ensures your coins are not slashed due to additional fees for storage or transaction. Most importantly, the technology is open source and so those who contribute to its infrastructure are volunteers who are passionate about cryptocurrency, which means no compensation is required to keep its development on course.

Individual ownership

Unlike traditional banking systems, cryptocurrency offers you individual ownership where no third party is tied to your funds. Your wallet is your property and you have control over how many transactions you can perform as well as the amounts you can keep. Unless you delegate management, you remain the sole owner of your wallet and all information is encrypted so you are sure to have all the rights over your wallet.

To keep your wallet and its data secure, make sure to always store your login information well as this is one of the ways someone can access your wallet. Note that once someone gains access to your wallet they can initiate transactions that you may not be able to reverse, and many people have lost money in this manner, so don’t always have all the money lying in the wallet as not all the time you may have your login data kept securely.


There is a wide collection of coins that you can choose for your needs and most of them can be adapted to different wallets. There are wallets that will allow you to manage different coins, and this means you will not need to keep several wallets for different types of coins. Some coins are suited to different uses and this comes as a very applicable solution especially where you are running ventures that accept different types of coins. It’s also easy to integrate the system in your business so all payments are added to your wallet, and the benefit is that no one is able to interfere with your information or get access to your wallets or any secret data that involves the transactions.

Cryptocurrency wallets are a revolutionary way through which you can store funds and perform transactions. The wallet gives you individual ownership and you are saved from paying transaction fees. It is also secure and guarantees confidentiality, which is unlike conventional channels of payment.