All You Need to Know About Bitcoin Wallets

Bitcoin has numerous benefits over fiat currency, but not everyone is aware of them. Read our detailed overview to discover all the advantages that top crypto wallet apps pose for the end user.

All You Need to Know About Bitcoin Wallets

In the second decade, people are not only talking about cryptocurrency but also use a cryptocurrency wallet app in real life. Despite the fact that crypto no longer surprises anyone, the term is still a dark horse. And when somebody is talking about a cryptocurrency, they are most likely to be talking about Bitcoin. 
The first Bitcoin was created in 2009 by Satoshi Nakamoto, and since then it has always been in the spotlight of the world. In 2013, Bitcoin reached its peak rate of $266, having grown in value 10-fold in just a couple of months. But shortly after, it fell to a lower price with staggering speed. So, naturally, it has ignited a lot of debates regarding the future of cryptocurrency in the global financial market.
Today, 1 Bitcoin is equal to $24,048 and, as it turns out, even that amount is not its peak. Its historical peak was on November 9, 2021 when a single coin was given $68.3K, and the next day the cryptocurrency broke through the mark of $69K.
Because of its high volatility and huge fluctuations, Bitcoin still cannot fully compete with traditional currency, but at the same time, thanks to a number of undeniable advantages, the demand for it continues to grow and Bitcoin is becoming a permitted method of payment.

Advantages of Bitcoin

First of all, all Bitcoin payments are discreet. In order to perform any kind of transaction in a crypto wallet mobile app, you only need a designated Bitcoin address for the recipient. It usually looks something like 8HkoawfiaRMN7jhbfiuHslpP9. The major benefit of this cryptocurrency wallet app is that you can produce an unlimited amount of these addresses. Therefore, you stay completely anonymous, because knowing only the address is not enough to identify an account associated with a particular transaction.

No third-party intervention
This is one of the most widely discussed issues when it comes to Bitcoins. Governments, banks, or any other financial institutions are not able (as of this moment) to interrupt a transaction or in any way affect an account. So, the nature of a cryptocurrency provides a greater degree of freedom to the end-user than any national currency in the world.
The reason why so much attention is drawn to this aspect is that it makes it particularly easy to commit fraud. Some government officials even referred to Bitcoin as a giant “money laundering scheme”. But we are not here to discuss politics.
And since there is no third party to identify or intercept a transaction, Bitcoin payments are free from sales taxes.

High return potential
As we said above, Bitcoin has high volatility and depends on many factors. Nevertheless, this disadvantage for long-time users can turn out to be a plus in the form of high return potential. The number of people investing in Bitcoin is constantly growing, which means that the opportunity to make money on changes in crypto is increasing. In addition, top crypto wallet apps help users predict future rate changes and make optimal investments with minimal potential loss of money.

Simple, fast and reliable
Bitcoin is simply a superior candidate for cross-border money transfers, as it is essentially quicker and not as costly when compared with traditional currencies. And, best of all, the exchange rates do not apply to a cryptocurrency, so any transfer has a very low cost. Plus, the crypto wallet mobile app eliminates any need for authorization requirements and confirmation delays.
But this is a double edge sword. On one hand, the nature of a cryptocurrency ensures that identity theft is impossible (since there is no identity associated with your account, to begin with). But, at the same time, it maximizes personal responsibility and, therefore, increases risks. Let us elaborate on this a little bit more.
Wire transfers operate on the so-called “pull” principle, where a merchant charges you with a certain amount, and by providing your credit card, you essentially give out an access to a full credit line, and then a certain amount is pulled from your account. A cryptocurrency, on the other hand, utilizes a “push” system, where an account holder sends out an amount of money that he or she wants, with no additional data.
So here is the tricky part, with no personal information it is virtually impossible to create a safety net around Bitcoin wallets that would prevent you from accidentally making a wrong payment. Every transaction is completely irreversible and there is no bank that can freeze an account or withhold the money.
And to clarify something very important, you can lose your Bitcoin wallet, unlike a bank account. All the data of your wallet is stored in a “wallet file” on devices. So, if you lose the file, you lose the money.

How does crypto wallet app development help minimize personal responsibility and decrease risks?

There are many different services in the Fintech industry, and crypto wallets are one of the leading ones because they facilitate interaction between users and the complicated system of crypto-financials. Crypto wallet app development provides users with high security and encryption, easy transfer, and low fees. Moreover, push notifications in mobile apps allow users to always be aware of the latest conversion rates, react faster in critical situations and, therefore, save money.
A modern crypto wallet app also forecasts cryptocurrency behavior, has personal assistants, QR scanners to store documents, and many other features that provide users with a seamless and secure cryptocurrency buying and selling experience. 

The Future of Bitcoin

The number of people who actively use a crypto wallet app is more than 300 million, and it is undoubtedly rising. There are companies today that accept payments in Bitcoin, and these are not “small fish” by any stretch of the imagination. Wordpress, Amazon, Zappos, Bloomberg, Wikipedia, Microsoft, and others are now offering Bitcoin as a payment option.
So, will it replace the traditional means of money exchange? Will it be integrated with an already existing model? Will the government regulate it eventually?
No one can say for sure. But it will be exciting, to say the least, to see how the cryptocurrency market will shape itself in the next decade, because for now it seems like it’s on the verge of great change. The only thing we can say with absolute certainty is that now is the perfect time to delve into the world of cryptocurrency and take the first step in financial app development. You can order a professional consultation by filling out a contact form and we will help you. 

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