What Are the Pros and Cons of Crypto Wallet Apps

Ever wondered about the pros and cons of crypto wallet apps?

Crypto wallets are secure, convenient platforms for managing a diverse portfolio of cryptocurrency assets. They provide a portal for users to buy, swap, transfer, and receive crypto tokens, all from one location. 

There are several types of crypto wallets, each for different use cases. Besides utility, crypto wallets are categorized according to the security level, kind of assets stored, and the users preferred investment. 

While crypto wallets offer a comfortable means to handle cryptocurrency, they have their pitfalls. You can find some of the best examples of crypto wallets here: blog.tezro.com/best-crypto-wallet-apps/

Are you interested in knowing more about crypto wallets? The perks of owning one and the drawbacks, this article will elucidate the pros and cons of crypto wallets.

Pros of Crypto Wallets 

Crypto wallets are valuable to the crypto community for a generous selection of reasons. We’ll be exploring a couple of them in this section. 

Security

This is the number one priority of a crypto wallet, no matter its type. Crypto wallets offer the safest channels for performing cryptocurrency transactions on the blockchain. Other means of transferring crypto – Exchanges and Centralized Institutions – are vulnerable to cyber-attacks that compromise the system’s security and its users. 

Wallet owners are issued public and private keys by the wallet provider. 

However, crypto wallets remain immune to malevolent actors through the use of private keys. They are essentially impenetrable through hacking. A third party can only gain unauthorized access to a wallet if they get a user’s private keys. That is why it’s important to have a seed phrase storage plan in place to keep your wallet safe.

Cutting-edge Technology 

Crypto wallets are one of the modern applications in the crypto scene. Everyone relishes in owning new technology – there’s a sense of pride in being up to the times. Crypto wallets are one of the most recent innovations in crypto, and they keep improving with time. 

At the moment, we have two types of crypto wallets, hard wallets and soft wallets. The former is only accessible online, more convenient for day-to-day transactions, although they are less secure. Whereas, cold wallets are operable without an internet connection, and are less flexible than hot wallets but provide better security from cyber-attacks. 

Investment 

Crypto wallets creates a portal to the latest offerings in the world of blockchain, allowing users to invest in trendy cryptocurrencies as well as other digital assets. Wallet owners can invest in the NFTs, including other digital assets related to DeFi and GameFi.

All kinds of people involved with the Crypto space benefit from crypto wallets, such as investors, gamers, and traders. 

Cons of Crypto Wallets 

While crypto wallets are indeed awesome, they also have some drawbacks. 

Complexity

Many users that have no problems using bank apps, find the UI of Crypto wallets too complicated. This creates a technical barrier for users interested in owning crypto wallets. Oftentimes, even the more experienced people with crypto have difficulty navigating crypto wallets, one of such is the MetaMask. 

MetaMask is a leading wallet in crypto, which helps users trade all sorts of digital assets using Ethereum.

Some important information on the backend of MetaMask doesn’t reflect in the front end. Transactions on Ethereum’s ecosystems require gas fees. Oftentimes, the gas fees for a given transaction aren’t displayed on the UI. 

Security Threats

Although crypto wallets are much safer than decentralized exchanges (DEX), they aren’t entirely hack-proof. Black hat hackers always find new ways to forcefully gain unauthorized access to users’ funds.

Considering the high level of security on crypto wallets, these dubious actors find less aggressive means to get a hold of users’ wallets through social engineering antiques and sophisticated phishing. Their efforts are usually targeted at obtaining the private keys of users. With this, they can make transactions from the stolen private keys wallet to their personal wallet address.