Digital wallets have become popular helping people avoid carrying cash and card noted Bahaa Abdul Hussein. Their mobile phones with digital wallets apps now help them transact anywhere and at any time. Cryptocurrency is popular thanks to the growth of Bitcoin and other such products. Digital wallets and cryptocurrency can be a good match and can work together. Let’s see how this can happen.
The combination of Cryptocurrency and Digital wallets
It is a known fact that cryptocurrency works on the blockchain platform. Blockchain is secure and completely minimizes the prospects of cyber risks. Blockchain-enabled cryptocurrency will thus help to overcome the limitations of digital wallets.
Presently digital wallets have limitations related to security. These wallets are linked to bank accounts for transactions to be carried out. If cryptocurrency is used instead of real money, then the benefit of blockchain can be enjoyed by customers. It allows users to enjoy all the benefits of both cryptocurrency and digital wallets.
All about crypto wallets
Crypto wallets are essentially applications you use on your device. While a physical wallet will have cash, a digital wallet will have a link to your bank account. A crypto wallet would hold the passkeys that will give you access to your cryptocurrency. Crypto wallets make use of NFC or Near Field Technology and integrated QR codes. The use of these technologies make it easier to use crypto wallets.
There are different types of crypto wallets you must know about:
- Hot wallet is a wallet that is connected to the internet.
- Cold wallet is not connected to the internet.
- Software wallets use an app with scanning option to help you carry out transactions. They are usually hot wallets.
- Hardware wallets are like USB drives. They can be plugged into a mobile or laptop to carry out transactions securely. They are usually cold wallets without internet connectivity.
The key benefit of using a digital wallet with cryptocurrency is that it is easy to use for your transactions. It is highly secure and allows you to transact without having to use intermediaries. The transaction charges are usually lower when compared to using traditional digital wallets.
Conclusion
Crypto wallets are the perfect blend of digital wallets with cryptocurrency for money. It is a secure solution that is beneficial for users. Crypto wallets are fast gaining in popularity and is a trend for the future. It is a techno-solution that will soon become popular and adapted universally. Thank you for your interest in Bahaa Abdul Hussein. For more information, please visit www.bahaaabdulhussein.com.
