A mobile wallet is a crypto wallet installed on a mobile device.
What Is a Mobile Wallet?
A mobile wallet is a software program installed on a mobile device to store a user’s payment data, including crypto and financial account APIs. In crypto, mobile wallets are typically mobile-based applications that store private keys.
Apart from storing, a mobile wallet enables its user to send and receive virtual currencies. These applications are available on leading app stores such as Play Store for Android and App Store for iOS devices.
Notably, mobile wallets do not store the virtual funds themselves but only the means of access, which are private keys in most cases. Crypto-based mobile wallets allow you to track and control your cryptocurrencies. For instance, if you have Bitcoin (BTC) in your wallet, your private keys will enable you to move your BTC to any address within the blockchain. The same goes for centralized mobile wallets that hold fiat money, except that your funds would be stored by your bank or custodian instead of a blockchain.
Most traditional mobile wallets use a username-password combination to grant access. Crypto-based mobile wallets present a seed phrase to facilitate password resets and wallet recovery. Popular crypto mobile wallets include Abra, Coinomi, Jaxx Liberty, Electrum, Exodus and Mycelium.
Mobile wallets are also known as hot wallets since unlike hardware wallets, they require an internet connection to work. As such, they are viewed as less secure when compared with cold wallets.Critical things to look out for when choosing a mobile wallet include security (make sure it supports 2-factor authentication), supported assets, seed phrase storage options and ease of use. Additionally, user reviews can help in narrowing down your top options.
Advantages of a mobile wallet include speedy transaction processing time, user-friendliness, and easy accessibility.