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Tag: hot wallet

  • MetaMask Integrates PayPal Payment in the U.S. for Easier ETH Purchases

    MetaMask Integrates PayPal Payment in the U.S. for Easier ETH Purchases

    MetaMask Enables U.S. Users to Purchase ETH via PayPal

    MetaMask developer ConsenSys has announced the integration of a PayPal payment option to its software wallet. Users will be able to buy and transfer Ethereum (ETH) by logging into the mobile MetaMask app, tapping on the “Buy” button, and selecting “PayPal.” This will redirect users to PayPal, where they can complete their transaction OR send ETH from their PayPal account to their MetaMask wallet.

    This feature will be rolled out to all U.S. users first in the coming weeks, as they are one of MetaMask’s largest markets in terms of users. For MetaMask’s desktop browser extension, MetaMask Product Manager Lorenzo Santos told Decrypt via email that it will be available in the next quarter.

    As of now, it is unclear whether the feature will be deployed in other countries or if other cryptos will also be available for purchase. Since ConsenSys is run by Ethereum co-founder Joe Lubin and MetaMask is an EVM-only wallet, it makes sense that ETH purchases are focused first.

    Unlocking the Web3 Ecosystem with MetaMask and PayPal

    As one of the top crypto wallet providers, MetaMask is often a starting point for users interacting with DeFi applications, GameFi, and metaverse platforms. And because PayPal is one of the largest online payment systems with 432 million active accounts worldwide, adding PayPal to MetaMask could broaden the customer base, making it easier for newcomers to enter the Web3 ecosystem.

    Santos stated in the press release, “this integration with PayPal will allow our U.S. users to not just buy crypto seamlessly through MetaMask, but also to easily explore the Web3 ecosystem.” 

    Traditional Payment Companies Expanding to Web3

    Over the past year, more and more traditional payment companies have been integrating crypto into their services. In fact, PayPal first began offering customers the ability to buy, sell, and hold crypto on its platform in 2020, and allowed customers to checkout with Bitcoin, Litecoin, Ethereum, and Bitcoin Cash in 2021. In June 2022, PayPal also enables customers to transfer crypto from PayPal to other wallets or exchanges. And now with the new integration into MetaMask, we can expect PayPal to release more new features gradually.

    Other traditional payment companies have also followed suit. Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network, the layer-2 protocol for Bitcoin’s blockchain. Stripe, an Irish-American financial services company, has also launched its own tool to help Web3 companies, allowing their customers to buy crypto with fiat.

    Other global financial services have also hinted at the possibility of dabbling into crypto. In October, Western Union filed trademark applications for managing wallets, exchanging digital assets and commodities derivatives, issuing tokens of value, and brokerage and insurance service, according to trademark attorney Mike Kondoudis.

  • Hot Wallets vs. Cold Wallets: Differences, Pros and Cons

    Hot Wallets vs. Cold Wallets: Differences, Pros and Cons

    Hot and cold wallets are used to store your cryptocurrencies, specifically your private keys which grant you access to your crypto assets. They are therefore a crucial element of the cryptocurrency space.

    The major difference between hot and cold wallets is that hot wallets are connected to the internet whilst cold wallets are not.

    For those holding cryptocurrencies, the choice between cold and hot wallets depends on factors such as the amount of coins you hold, the frequency in which you trade etc.

    Click here to learn more about private and public keys.

    Hot Wallets

    Hot wallets are connected to the internet and are generally more popular.

    Examples of Hot Wallets

    Hot wallet: Enjin mobile wallet
    Hot wallet: Enjin mobile wallet

    Pros

    • Easy to set up and use.
    • Convenient to access funds for trading since it is already connected to the internet.
    • Free.

    Cons

    • Vulnerable to hackers, as seen in the numerous hacks on cryptocurrency exchanges.
    • If exchanges close, traders will be left with no recourse to recover their funds.

    Cold Wallets

    Cold wallets are also known as hardware wallets. They are physical offline storage devices that you plug into your computer to use.

    Cold wallets
    Cold wallets: Clockwise from left, the Ledger Nano X, Trezor Model T and KeepKey

    Examples of Cold Wallets

    Pros

    • Provide better security because your private keys are stored offline.

    Cons

    • Can be expensive; prices can range from US$59 for the Ledger Nano S to US$170 for the Trezor Model T.
    • Extra steps are required for trading. Save for the KeepKey which is partnered with ShapeShift exchange, users must first send their cryptocurrencies from their cold wallet to an exchange before they can trade. And when cryptocurrency prices fluctuate by the minute, this can have a profound effect on your gains.
    • Harder to use. They do require at least 10 minutes for initial set-up, and you will need to plug in your device every time before sending your cryptocurrencies. (www.speedclean.com)
    • Inconvenient. Even with the Ledger Nano X’s mobile feature allowing you to connect the device to your mobile phone via Bluetooth, it’s still not as convenient as a mobile wallet, which is simply an app on your phone.

    Conclusion

    Whilst there is a longer list of cons for cold wallets, they are still highly recommended on the basis of significantly improved safety of funds.

    Numerous people have suffered from hacks and closures of exchanges. These victims have no way to get their funds back, or at best, it will take a very long time. For example, Mt. Gox exchange was hacked in 2011 and 2014. To date, none of its victims have gotten any of their stolen funds back.

    Meanwhile, hot wallets are very convenient — if you leave your funds on exchanges, you can trade with the click of a button.

    We recommend keeping small amounts of cryptocurrencies in hot wallets for day-to-day trading or spending only. Whilst the bulk of your cryptocurrencies should be kept in cold wallets. If you obtain any gains from trading, you should also consider how much you want to retain for further trading and immediately transfer the rest to cold wallets.