Due to the constant growth of the crypto market, the number of crypto wallet users is also increasing. On top of that, the use of Bitcoin is growing, and the coin reached a market cap of $928.5 billion in 2021, leading the cryptocurrency market.
Users’ interest in crypto investment is further boosted by technology giants like Starbucks, Microsoft, Amazon, Visa, Tesla, and more, as they have started accepting payments in Bitcoin. This is the reason many SMEs and start-ups are gaining huge interest in bitcoin wallet development to thrive in the crypto market.
If you are also planning to develop your own Bitcoin wallet, it is imperative to understand the market. This blog will enlighten you on the risks and benefits of a bitcoin wallet that will help to take you a further step.
Benefits of Bitcoin Wallet while Trading
The following are the benefits that a user experiences while trading with the crypto wallet.
● Easy to Transfer funds
Crypto or bitcoin wallets are extremely easy and convenient to transfer your funds globally. You don’t have the hassle of conversation and can quickly transfer a specific coin/token from one wallet to another.
● Decentralized Valuations
These days, many crypto enthusiasts are using decentralized wallets; the cryptocurrency is not tied to any central bank. Digital currency is not influenced by any central geopolitical and macroeconomic issues like country-specific inflation or interest rate.
● Low Deposit Amount
A trader can start his/her trading journey by investing a few cents by using a crypto wallet.
● Low Cost of Trading
Most crypto wallets keep extremely low trading fees to attract new clients.
Users do not need to reveal their bank account or credit card details to make bitcoin transactions via crypto wallet. This is the biggest advantage of cost and financial security.
● No Global Boundaries
Bitcoin transactions have no global boundaries. A trader based in the USA can send or receive bitcoin or any other altcoin from a trader based in the UK. There are some regulatory challenges that one can face, but if both parties are willing to transact, there are no geographical boundaries.
Risks of Bitcoin wallets
Crypto wallets are a lucrative option for hackers. According to the recent news, several US-based companies’ cyber networks were held for ransom, and the hackers demanded payment in cryptocurrency.
Despite integrating the high-grade security features, criminals are constantly finding an innovative way to attack the crypto exchange servers.
Another risk factor that crypto wallet users can face is malware that automatically replaces the clipboard content every time the user copies his/her crypto wallet address. The malware replaces the wallet address with the hacker’s address, and this is the most common crime that crypto users are facing these days.
After experiencing such incidents, many crypto exchanges have introduced the Secure Asset Fund feature in their ecosystem for users, where 10% of all trading fees are collected to reimburse the users’ fund if this kind of mishappening takes place in the future.
To Sum Up
No matter the risks involved, trading through crypto wallets has many benefits. So, if you are planning to build your own crypto wallet, fortify it with the right security features to make it safe for users.
Antier Solutions can help you to build a highly secure crypto wallet reinforced with market-leading features like cash-in and cash-out, swapping, in-chat transactions, staking, and more. We are trusted for our white label wallet solution as well as building a custom wallet from the ground up. Our blockchain engineers comprehend your needs and deliver solutions that help you accomplish your business goals.
of our white label bitcoin wallet or connect with our subject matter experts to share your needs for a custom wallet built from scratch.