Bitcoin and other crypto assets are all about removing centralization from the online financial system. However, the vast majority of crypto users do not use this new technology in this way. Instead, most people simply leave their Bitcoin holdings. They leave them on whatever crypto exchange they used to purchase them in the first place. This has led to a high degree of centralization. Especially around these crypto exchanges in terms of crypto supply and node infrastructure.
Unfortunately, it’s still somewhat difficult for people to take custody over their own crypto coins. This is due to the complexities that come with interacting directly. Directly with these various crypto networks. That said, mobile Bitcoin wallets have come a long way. Also, might be the best option for getting people to take control over their crypto holdings. They may not the safest option for storing your life’s savings. However, mobile crypto wallets can be useful for anyone who makes crypto transactions. Typically on a regular basis, especially in a real-world environment.
Types of Bitcoin Mobile Wallets
There are quite a few options to choose from when it comes to bitcoin wallets these days. However, all of these different crypto apps are not equal. Each crypto wallet tends to come with its own set of niche features that it uses to attract an initial base of users. Some wallets are more popular than others. However, the reality is there isn’t a single bitcoin wallet that everyone in the world should use. When choosing your own preferred crypto wallet, it’s important to think about how you interact. Interact with the crypto ecosystem as a whole before making a selection that is.
For example, most of the mobile bitcoin wallets these days have integrated a secondary payments protocol known as the Lightning Network. The Lightning Network solves many of the payment-related issues found at the base blockchain layer, namely slow transactions and relatively high fees. Due to its suitability for payments, most new merchants who accept Bitcoin payments these days do so via the Lightning Network. And if you’re going to pay for something with bitcoin while you’re out on the town, it would make sense to do that via your phone rather than a laptop or some other device.
While many of the most popular bitcoin wallets are already integrating the Lightning Network, there are a variety of different ways in which these integrations have taken place. And these integration choices come with trade offs for users. For example, some mobile Bitcoin Lightning Network wallets are actually completely custodial. This means that the wallet provider, not the user, is in full control of the funds held in the wallet. In other words, it’s no better than keeping your funds on a crypto exchange. In fact, it could be worse. The developer behind the Lightning-enabled wallet could be somewhat anonymous. So, if you’re looking for a mobile Lightning Network wallet, make sure you stick with one that keeps you in control over your private keys.
Bitcoin Wallets Continued
When you move into the greater crypto and web3 ecosystem, you will find that wallets tend to focus on their ability to interact with a variety of decentralized applications. Most of these sorts of wallets will have native integration with the Ethereum Virtual Machine (EVM), which is supported by a number of different crypto networks such as Ethereum, BNB Chain, and Polygon.
Ethereum was the first major blockchain to focus on the development of decentralized apps in the areas of finance, collectibles, and more. However, many mobile crypto wallets are now integrating a variety of different crypto networks as alternatives grow in popularity. Of course, there is no requirement for all of the mobile wallets to stick with only EVM-compatible blockchains. This is why many of them support Bitcoin and Solana as well. If you’re someone who does not discriminate when it comes to the use of different crypto networks, then you’ll want to use a wallet that has support for as many different blockchains as possible.
Using Mobile Wallets
One should note that it generally does not make sense to store large amounts of crypto assets on your mobile wallet. After all, would you walk around with a Picasso painting or $1 million in cash at all times? Instead, mobile wallets are more useful for small amounts of bitcoin for everyday spending, especially via the Lightning Network.
You’ll also want to make sure to use a hardware wallet. Especially, if you’re trading large amounts of crypto funds on a regular basis. It’s still possible to connect a hardware wallet to some mobile wallets and smartphones. However, they now come with secure enclaves for added security. It still doesn’t make much sense to do a lot of volume from your phone while you’re on the go. Even though you’ll be using your bitcoin mobile wallet for relatively small amounts. You’ll still want to make sure to write down your seed phrase in case you lose your phone or it breaks.
This disclaimer informs readers that the views, thoughts, and opinions expressed in the text/sponsored content belong solely to the author, and not necessarily to Bitcoin of America, organization, committee or other group or individual. All investments are at your own risk and should be done after careful research.