CRYPTO WALLETS AND THEIR MERITS AND DEMERITS
Good day my fellow Hivers...
Here we go again on the fundamentals of blockchain and cryptocurreny basics....
So according to series today we are going to be looking at Different kind of wallet with their merit and demerits.
Last time we talk about:
BLOCKCHAIN TECHNOLOGY (IN A NUTSHELL)
Check my profile to have a glance and get some info on the previous series....
THE motto for this series is:
"GET INFORMED SO YOU DON'T DEFORMED"
So hold tights and have a coffee beside you cause it is going to be a very interesting and thought catching session...
whatever am going to say here are my original words and no copy and paste likewise the pictures are mine as well.
So let's begin....
My humble self your host (Christian Wealth 🤑)
Title: Crypto Wallets with their Merits and Demerits
first we start with the definition of a Wallet:
"A wallet is either a decentralized or centralized storage device or application use to store, receive, send and exchange cryptocurrencies."
Now if you observed the definition there is an "Or" inscription there saying "Decentralized" and "Centralized". let's check it briefly...
Now wallet can be centralized or decentralized... which are the two major kinds of wallet.
Centralized simple means a wallet that is controlled by a certain group or firm, which means control of user is in place and organization policy are applied like: KYC, Limit, minimum amount to send and receive. For example: Binance, Hotbit, Gate.io, Houbi, Argent and many more.
Decentralized in opposite means no control by certain group or firm. No one is entirely in charge of the wallets and organization policy are never applied to users, therefore allowing free and fair routines on your wallet. For example: Trust Wallet, Tronlink, Kelver, Tokenpocket, Metamask
Before we move to the next face of the series today. let me touch light some examples of this wallet and their behaviours.
Note: Am going to give a details on this wallet in group on the decentralized and centralized and the differences and any other defects will be enlisted after their similarities.
1. TRUST WALLET, TRONLINK, KELVER, METAMASK TOKENPOCKET: are decentralized wallets and most recommended for anyone to start with in storing your cryptocurrencies and other activities but most especially "Trust wallet". These wallets is easy to open or create and need less or no too much work in setting up. and it is noted to be one of the fastest processing wallet in transaction alongside Tronlink Wallet. Because of it multiple Network ecosystem you can process various decentralized Ecosystem in like of decentralized website on either Tron, Binance, Ethereum, Polygon, tomochain. which is why you can store different cryptocurrencies that are created in the various Crypto Ecosystem.
Features of Decentralized Wallets:
- Multiple Network Ecosystem.
- Decentralized nature...
- Decentralized Ecosystem.
- Phrase Encrypted and Recovery is simple
- Easy to Use
Merits of Decentralized Wallets.
- No KYC
- Fastest in processing Transactions (Trust Wallet, Kelver and Tronlink)
- No minimum deposit or send amount.
- Easy Recovery
- Simple Interface.
- Low risk
- Lowest transaction fee for Transactions
Demerits of Decentralized Wallets.
- With Phrase you account can be recovered on any phone which is why you have to put high security on your phone and also mind whom you give your phone.
From my 4 years of experience on the trust wallet this is the only defects I could, but you can add yours for us to learn on the comment section.
One Advice I will want to give to Users of Trust Wallet...
Never Run a quick swap on the exchange interface on your trust wallet cause the charges are normally on the high side, rather use any of the available exchange on the discover or Dapp browser interface in the likes of Pancakeswap and others.
SOME DEFECTS ON SOME DECENTRALIZED WALLETS
I will start from the worst to best...
First on the List is:
KELVER WALLET Kelver wallet consume much energy in processing transaction making it not suitable for exchange of cryptocurreny both in quick swap and exchange. Due to the high energy consumption you spend more on transaction fee. making it very expensive and also in exchange minimum amount is always applied.
Second on the list is :
TRONLINK Tronlink wallet process only tokens on the Tron ecosystem which means you can't process token of other Ecosystem in likes of Binance, Polygon, Ethereum etc.
Third on the List is:
Trust wallet Trust wallet has not been able to process the tron ecosystem on its application possibly due to the energy consumption protocols so tron dapps webs don't work on trust wallet dapps browser.
Lastly before I talk about some fine features of some decentralized wallet.
METAMASKMetamask wallet is good no doubt but making very technical in the sense that you will have to add any network of your choice manually before you can be able to use making it not easy for newbies to use.
SOME FINE FEATURES OF DECENTRALIZED WALLETS
In case of TRONLINK all Tron address of other decentralized wallets which are phrase encrypted can be open and use on the TRONLINK wallet all you get to do is simply import your 12 phrase from the other decentralized wallet and create an existing wallet and paste it there to view your wallet from TRONLINK. so is it applicable on METAMASK.
Also you can store NFT on your METAMASK wallet and Tokenpocket.
NOW LET MOVE TO THE NEXY PHASE
- BINANCE, HOTBIT, GATE.IO, HOUBI, BITFINEX are all centralized wallet which are recommendable but the facts still remains that funds are been monitored. Prompting Users to do their KYC, policy are put in place for various activies like Spot trading, Future trading. there are much things to talk about on this centralized wallet.
Now setting up this accounts on these wallets are ranging from email verification to phone number verification then document verification.
Making it sound like a company you are applying for enagibility of product usage.
One of the major things I like about this centralized wallets is just one: You can receive a token in one ecosystem and send it in another ecosystem simple.
(Which means I can receive USDT on TRC20 and send that same token to another on BEP20 or ERC-20 or BEP2).
Although despite the functionality of the centralized wallets dapp usage isn't allowed, prompting high security protocol on accounts. High security can be applied but not forgetting if you don't activate your KYC loss of fund can take place and your address will be wipe from the blockchain...
So originally all address on the centralized wallet are running on a smart contract created which means there is an overall address running behind it. which is why you will always see a smart contract activate on address before you see the sending and receiving address. ( Don't worry I will make a lesson that soon).
FEATURES OF CENTRALIZED WALLETS
- Multiple Network Ecosystem.
- Spot Trading
- Recovery is also simple when you provide the right answers to the security questions.
- still easy to Use but not too friendly else you can switch to lite mode.
Merits of Centralized wallet.
- Must Do KYC
- Availability of Trading (Fiat, Spot, Future)
Demerits of Centralized Wallets.
- Due to the high security protocol attached newbies takes a lot of time to understand the interface.
- High cost in transaction fees
- Minimum amount are sometimes 40 USD above.
- minimum receiving amount is 10 USD.
Food For Thought.....
Despite the disadvantages outline above there are all still very useful in some cases.
So I will advice newbies and experts to make proper use of these wallets wisely so as to avoid much spending and loses as well.
Conclusively, I will say let your wallet be your study book always because you might not know what you are missing from it. most of these wallets have features we can key in and make money from it through our idle tokens and money as well. that will be our next two series to come.
so next in line on our series will be
"BLOCKCHAIN ECOSYSTEMS" (GOOD, BETTER, BEST)
Peace 🕊️ to you all....
Here is your Proof of Brian. I think you meant #ProofOfBrain