Mobile Wallets For Beginners: Everything you need to know about setting up and using mobile wallets
You may or may not already know that wallets are required to store your cryptocurrency in a secure location that is not on the exchange. We’ve discussed using software and hardware wallets already, but what about when it comes to using mobile wallets? These are an alternative to other forms of keeping your digital assets secure, and can even be a bit more convenient when it comes to using it in everyday situations. You’re most likely on your phone all the time already, so why not use it to keep track of and access your cryptocurrency? Let’s go over how to use and set up mobile wallets.
What Are Mobile Wallets?
Mobile wallets are pretty similar to software wallets in the sense that they’re both ways to store your cryptocurrency outside of just keeping it on an exchange. However, these mobile wallets don’t actually store your cryptocurrency. Instead, they store your private and public keys and interact with various blockchains to enable users to send and receive digital currency and monitor their balance.
If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet. Millions of people use cryptocurrency wallets, but there is a considerable misunderstanding about how they work. Unlike traditional “pocket” wallets, digital wallets don’t store currency. In fact, currencies don’t get stored in any single location or exist anywhere in any physical form. All that exists are records of transactions stored on the blockchain.
Mobile wallets give you the ability to do all of this at the convenience of your fingertips, giving you the most accessible cryptocurrency storing experience. To be able to spend your “coins” in the wallet and unlock the funds, the private key that’s stored must match the public address the currency is assigned to. If both the public and private keys match, the balance in your digital wallet will increase, and the senders will decrease accordingly. As such, mobile wallets remove the hassle of having to sign in on your computer and gives you all your cryptocurrency in one place on your phone.
Pros & Cons
Compared to other forms of keeping your cryptocurrency secure, mobile wallets have a few advantages and disadvantages which you should consider before making any decisions. For those actively using any popular cryptocurrency on a daily basis, paying for goods in shops or trading them face-to-face, a mobile wallet is an essential tool. It runs as an app on your smartphone, storing your private keys and allowing you to pay for things directly from your phone, making your whole payment process that much easier and quicker.
Moreover, some apps enable users to use their smartphones’ near-field communication feature, which means that they can simply tap their phone against the reader, without having to provide any information at all. This makes transferring your assets much easier and efficient, giving anyone who uses a mobile wallet an advantage when it comes to transferring their assets in a timely manner.
Despite being a convenient on-the-go solution for cryptocurrency storage, mobile wallets are also very prone to hacker attacks. On top of that, you can also lose control of your wallet if someone simply gains access to your mobile device. There’s a large variety of cryptocurrency wallet apps for whichever device you use, so choosing the one that suits your needs the best is completely based on personal preference. While some apps do have features that others don’t, all mobile wallets essentially do the same thing.
Mobile wallets are much more accessible than other kinds of software wallets, as these can be accessed straight from your phone. Conversely, this also makes them prone to hacks if someone gains access to your phone.
How to Set Up A Mobile Wallet
Step 1: Open up your app store and search for the mobile wallet application that you deem is the best for your situation.
Step 2: Download, install, launch the app and read over the terms of service before confirming.
Step 3: A quick step by step visual guide will walk you through how to use the app. A follow-up prompt will request you to create a wallet and assign it a name.
Step 4: Next, set a secure password and confirm it. Store it safely, do not lose it and do not share it.
Step 5: Once created, it’s important to backup your wallet. Store it safely, do not lose it and do not share it. You cannot recover your password and back your wallet up if you lose them, so keep them safe.
Congratulations! You have successfully created a mobile wallet!
Have you ever used or do you currently use a mobile wallet?
Let us know why in the comments!
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