You may or may not already know that wallets are required to store your cryptocurrency in a secure location that is not on the exchange. We’ve discussed using software and hardware wallets already, but what about when it comes to using mobile wallets? These are an alternative to other forms of keeping your digital assets secure, and can even be a bit more convenient when it comes to using it in everyday situations. You’re most likely on your phone all the time already, so why not use it to keep track of and access your cryptocurrency? Let’s go over how to use and set up mobile wallets.

This is not financial investment advice.

This article will touch upon key aspects of how to use and set up mobile wallets.

In this article

Terminology

Mobile Wallet: A software program where Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address that is saved in the Bitcoin wallet of the person who owns the balance.

Public Key: A public key is a cryptographic code that allows a user to receive cryptocurrencies into his or her account. The public key coupled with the private key are significant tools required to ensure the security of the crypto economy.

Private Key: A private key is a sophisticated form of cryptography that allows a user to access his or her cryptocurrency. A private key is an integral aspect of bitcoin and altcoins, and its security make up helps to protect a user from theft and unauthorized access to funds.

Blockchain: The easiest way to understand blockchain is to think of it as a fully transparent and continuously updated record of the exchange of information through a network of personal computers, a system which nobody fully owns. This makes it decentralized and extremely difficult for anyone to single-handedly hack or corrupt the system, pretty much guaranteeing full validity and trust in each exchange of information.

Familiarize yourself with these key terms to better understand how to use and set up mobile wallets.

What Are Mobile Wallets?

Mobile wallets are pretty similar to software wallets in the sense that they’re both ways to store your cryptocurrency outside of just keeping it on an exchange. However, these mobile wallets don’t actually store your cryptocurrency. Instead, they store your private and public keys and interact with various blockchains to enable users to send and receive digital currency and monitor their balance.

If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet. Millions of people use cryptocurrency wallets, but there is a considerable misunderstanding about how they work. Unlike traditional “pocket” wallets, digital wallets don’t store currency. In fact, currencies don’t get stored in any single location or exist anywhere in any physical form. All that exists are records of transactions stored on the blockchain.

Mobile wallets give you the ability to do all of this at the convenience of your fingertips, giving you the most accessible cryptocurrency storing experience. To be able to spend your “coins” in the wallet and unlock the funds, the private key that’s stored must match the public address the currency is assigned to. If both the public and private keys match, the balance in your digital wallet will increase, and the senders will decrease accordingly. As such, mobile wallets remove the hassle of having to sign in on your computer and gives you all your cryptocurrency in one place on your phone.

Mobile wallets are apps or software that you can use on your mobile device to manage, access, and send your cryptocurrency. Remember, the actual cryptocurrency isn’t stored here, but it’s public and private keys.

Pros & Cons

Compared to other forms of keeping your cryptocurrency secure, mobile wallets have a few advantages and disadvantages which you should consider before making any decisions. For those actively using any popular cryptocurrency on a daily basis, paying for goods in shops or trading them face-to-face, a mobile wallet is an essential tool. It runs as an app on your smartphone, storing your private keys and allowing you to pay for things directly from your phone, making your whole payment process that much easier and quicker.

Moreover, some apps enable users to use their smartphones’ near-field communication feature, which means that they can simply tap their phone against the reader, without having to provide any information at all. This makes transferring your assets much easier and efficient, giving anyone who uses a mobile wallet an advantage when it comes to transferring their assets in a timely manner.

Despite being a convenient on-the-go solution for cryptocurrency storage, mobile wallets are also very prone to hacker attacks. On top of that, you can also lose control of your wallet if someone simply gains access to your mobile device. There’s a large variety of cryptocurrency wallet apps for whichever device you use, so choosing the one that suits your needs the best is completely based on personal preference. While some apps do have features that others don’t, all mobile wallets essentially do the same thing.

Mobile wallets are much more accessible than other kinds of software wallets, as these can be accessed straight from your phone. Conversely, this also makes them prone to hacks if someone gains access to your phone.

How to Set Up A Mobile Wallet

Step 1: Open up your app store and search for the mobile wallet application that you deem is the best for your situation.

Step 2: Download, install, launch the app and read over the terms of service before confirming.

Step 3: A quick step by step visual guide will walk you through how to use the app. A follow-up prompt will request you to create a wallet and assign it a name.

Step 4: Next, set a secure password and confirm it. Store it safely, do not lose it and do not share it.

Step 5: Once created, it’s important to backup your wallet. Store it safely, do not lose it and do not share it. You cannot recover your password and back your wallet up if you lose them, so keep them safe.

Congratulations! You have successfully created a mobile wallet!

Conclusion

Mobile wallets are a revolutionary innovation to the already advanced cryptocurrency industry. Storing, accessing, and managing your digital assets has never been easier and anyone who owns cryptocurrency should most definitely consider whether or not having a mobile wallet is the right decision for them. Moving forward, keep an eye out for further developments in this space, as keeping your digital assets secure is one of the most important things to do for every investor.