What is a mobile wallet?
A mobile wallet is a software application to store your cryptocurrencies. It allows cryptocurrency users to send and receive tokens. It is also called a hot wallet as it holds all the information online. Unlike traditional currencies, cryptocurrencies are not held in centralized banks, institutions or physical wallets. Users rely on wallets to store and protect their private keys. Mobile wallets are simple to set up, cost-effective and easy to transport. They also serve as interim storage for trading. In comparison, hardware wallets are more suitable for long term crypto holdings. The mobile wallets are app-based and are available across iOS and Android platforms. You can use these wallets within the comfort and privacy of your mobile phones and laptops. Here is our list of the top 5 mobile wallets for storing your bitcoin in 2020.
The Green Wallet was developed by Lawrence Nahum and Jerzey Kozera of Green Address Inc in 2013. It was then acquired by Blockstream, a blockchain technology company. It was renamed as Blockstream Green Wallet. It is one of the most innovative and secure crypto wallet apps, and a pioneer in multiple security features. It integrates multi-signature and two-factor authentication. In addition, the Green Wallet has a responsive user interface for easy navigation and is compatible with multiple operating systems. It was the first crypto wallet to allow dynamic Bitcoin processing fees. Another highlight of the wallet is its compatibility with leading hardware wallets like Trezor and Ledger. Furthermore, Green Wallet users can transact with their bitcoin on the Liquid sidechain.
✓ Has advanced security features like 2-FA, HD, and Multisig.
✓ Easy to set-up.
✓ Low transaction fees.
✓ User-friendly and highly customizable.
The Exodus mobile wallet was created in 2015. It was a part of the blockchain revolution that led to the elimination of a centralized authority and intermediaries. It endows users with privacy and control over their cryptocurrencies. Exodus allows users to store, manage, and exchange their crypto holdings from an easy-to-use mobile wallet. Users can enable the more convenient face or touch ID to secure the wallet without having to type a passcode. It is a blockchain hot wallet that combines technology and great design. It offers live charts with real-time updates. It requires no signup, and you control the private keys in a secure online environment. The Exodus wallet also offers 24/7 world-class support and helps you store different currencies in one place.
✓ Intuitive design and easy to use.
✓ Great online support.
✓ Multi-coins supported.
✓ Built-in trade and portfolio functions.
x High trading fees.
x Not open-source.
Coinomi mobile wallet was founded in the year 2014. With millions of active users, it is the oldest multi-asset wallet. It is used on both mobile devices and laptops. It supports as many as 125 blockchains ïand 382 ERC20 tokens — a total of more than 500 assets. The highlights of the wallet are its high security, privacy and exchange integration that make trading easier. Coinomi wallet has never been hacked till date. Strong-encryption ensures that your crypto holdings remain safe. Apart from these features, Coinomi has the upper hand due to the anonymity it offers. It requires no KYC, IP association and transaction tracking, making it an ideal choice for investors who hold multiple accounts and choose to remain anonymous. The wallet uses Hierarchical Deterministic approach (BIP44) to use one super-passphrase to keep your currency accessible and secure. Once you backup this passphrase, your wallet is secure.
✓ Highly secure wallet.
✓ It is integrated with two exchanges - ShapeShift and Changelly.
✓ No transaction fees.
x Not an open-source wallet.
x High trading fees.
Mycelium is an open-source mobile wallet for storing Bitcoins. Launched in the year 2013, Mycelium was one of the first hot wallets to enter the crypto space. Crypto users love its design and the interface. It is quite similar to the Electrum wallet but has a better user interface and a built-in exchange. The Mycelium wallet is one of the most downloaded mobile wallets for storing Bitcoin. In addition, you can set custom transaction fees for the Mycelium hot wallet. You can also choose the time duration for completing a transaction. It has compelling features like hardware wallet support, which allows users to hold their Bitcoin in an offline storage device while still using Mycelium’s user interface to see their holdings.
✓ Users can set custom transaction fees.
✓ Improved interface and design.
✓ Open-source software.
x Complicated for first-time users.
Electrum is one of the earliest mobile wallets. It was founded in 2011, two years after the creation of Bitcoin. Created as an exclusive wallet for Bitcoin, it excels in Bitcoin storage and management. Although its software is reliable, the wallet is more suited for advanced users due to its complex features and options. Electrum is an open-source wallet and allows users to set custom transaction fees. You have the option to choose between Bitcoin and other altcoins. It also offers you the ability to select the level of security you desire. For example, you can create a standard wallet with two-factor authentication, or a multi-signature wallet to increase the security. Other security options include elongating your seed phrase with custom words. The Electrum mobile wallet is perfect for the advanced crypto holder who wants optimum security and tailor-made features within a simple layout.
✓Custom transaction fees according to user preference.
✓High levels of security as compared to other hot wallets.
✓Customizable seed phrases.
x Poor customer support.
x Some features are complex to operate.
- What are the advantages of mobile wallets over other wallets?
The main advantages of a mobile wallet are:
- Easy access to your cryptocurrencies everywhere you go.
- You can complete transactions anywhere with an internet connection.
- Your cryptocurrencies are accessible through multiple devices.
- What is the custom network fee used by some wallets?
Users can manually adjust the network fees for popular coins like BTC, LTC and ETH. The default commission ensures fast and safe blockchain transactions and confirmations. But if you lower the fee, it takes more time for the transaction to be confirmed. Usually, transaction fees are higher when the network is overloaded.
- Are hot wallets safer than cold wallets?
Hot wallets are convenient to set up, more accessible and usually support more coins and tokens. However, hot wallets are also more susceptible to hackers, malware, and other technical vulnerabilities. Cold storage refers to external devices that store your cryptocurrency offline. Therefore hot wallets are less secure than cold wallets.
- Can mobile wallets be hacked?
Yes, mobile wallets are vulnerable to hacks, viruses and malware attacks. Therefore, it is recommended not to store a large amount of funds on a mobile wallet.