Under the spotlight today is highlighting the clear differences between digital and crypto wallets. Online finance and financial technology have come a long way in a very short space of time. And when it comes to storing our funds, we have more options than ever before. And with the industry getting so much bigger, we are seeing more innovation than ever before. Likewise, this is also resulting in a lot of emerging technologies. And so it’s understandable that people can get confused with all of the different terminology that is being bounced around. Particularly when it comes to online wallets. And so let’s clear up the differences.
What is a Crypto Wallet?
The best way to identify a crypto wallet is that it holds cryptocurrency. Although this may seem pretty self-explanatory, the whole concept of crypto is still fairly strange and foreign to a lot of us. Cryptocurrency is a form of currency that is wholly digital. It differs from standard currencies. Not only because it is digital but because it is all decentralised. What we mean by this is that every single transaction that is made between one crypto wallet and another is recorded on a public ledger. It also means that there is no regulation from banks for example. And this is something that makes it appealing for gaming online. You can sign up and take advantage of an online casino bonus.
What is a Digital Wallet?
Whereas a digital wallet is a lot like a crypto wallet, there are some distinct differences. Obviously, it doesn’t hold cryptocurrencies. It is for fiat currencies such as £ or $. They are really popular when shopping online, as it means that if you load money into your digital wallet, you don’t have to keep entering your card details each and every time you visit a website. Some examples of popular digital wallets include PayPal and Skrill. The former is most likely the most popular, and it is also the third most popular payment method after VISA and Mastercard.
Privacy is a priority.
One of the benefits of using a crypto wallet is that it doesn’t need any of your personal or financial information. All you simply need to do is deposit funds into your wallet and you can use them from there. It doesn’t need personal information, as you are identified by your wallet ID, which is a long string of numbers and letters. If you’re conscious of your privacy online, this may be the preferred option for you. It is just a matter of figuring out what cryptocurrency you are going to use. The main ones include the likes of Bitcoin and Ethereum.
There is no need to enter your details.
If you’re conscious of your safety and security when shopping online or making payments, you have no need to be concerned when using either of these wallets. Digital wallets such as Paypal use advanced forms of encryption to keep your details safe. Likewise, crypto wallets are based on a process called blockchain, which ensures transparency and security. And so if you want a secure way to make payments online, either for goods or to deposit funds into your online casino account, using either of these wallets ensures that you are kept safe.
In Summary
We’re hoping that if before you were a bit unsure of what both or either of these wallets were, we have cleared this up for you now. Both have their benefits and no real drawbacks but of course you’re going to want to do your research and assess your circumstances in order to truly establish which one is the best fit for you.
