In the ordinary world, a wallet is a holder for money, coins, IDs, receipts, and other small important documents. But in the crypto world, a wallet plays a similar yet very different role. If you’re keen to start crypto trading, you should know what a crypto wallet in the Philippines is and what role it plays in trading first.
At present, the Philippines ranks first out of 20 countries when it comes to ownership of non-fungible tokens (NFT), which requires a crypto wallet. So before digital tokens can sweep the crypto world by storm, it’s time to learn about crypto wallets in the Philippines, how they work, and how important they are in managing your crypto wealth.
Table of Contents
- What’s a Crypto Wallet?
- How Does a Crypto Wallet Work?
- What are the Types of Crypto Wallets in the Philippines?
- What are the Features of a Crypto Wallet?
- What is the Best Crypto Wallet in the Philippines?
- What are the Pros of Cryptocurrency Wallets?
- What are the Cons of Cryptocurrency Wallets?
- Things to Consider When Setting Up a Crypto Wallet
- How Do You Top Up a Crypto Wallet?
- How Do You Safely Use Crypto Wallets?
- Final Thoughts
What’s a Crypto Wallet?
A crypto wallet is also known as a digital wallet or blockchain wallet. It allows users to store keys (similar to passwords) and manage their cryptocurrencies.
Initially, the crypto wallet was not meant to store cryptocurrencies per se. A crypto wallet mainly kept and secured all proofs of cryptocurrency ownership because the real cryptocurrencies are stored in the blockchain.
Any crypto wallet in the Philippines allows you to access the cryptocurrency you own. Through the wallet, you can trade, convert, and transfer crypto to your preferred addresses.
How Does a Crypto Wallet Work?
Knowing how a crypto wallet works will bring us back to its definition. Again, a crypto wallet isn’t where you store your actual currencies. The wallet only contains information on what currencies you own and their quantities.
Crypto wallets also contain addresses to which your digital currencies will be allowed to move. The blockchain, on the other hand, acts as a ledger—a book or record of all transactions made with the cryptos you own.
Thus, crypto wallets don’t work the same way as the wallet you carry around in your pocket or in your bag.
|Stores your keys||✅|
|Encrypts transactions and information||✅|
|Contains your blockchain address||✅|
|Allows access to your digital currencies||✅|
|Keeps your cryptocurrencies||❎|
|Lets you trade and transfer digital currency||✅|
|Uses an email address and a password to permit access||✅|
|Connected to the blockchain||✅|
What are the Types of Crypto Wallets in the Philippines?
In general, there are two common types of crypto wallets. But in this section, we’ll also talk about other types of wallets that fall under the two general categories.
Hot wallets are basically those connected to the internet. They offer accessibility but less security. There are different types of hot wallets, which include the following:
As for desktop wallets, you need to download them on your laptop or desktop computer. These allow users to create their passwords before accessing their keys. Although you leverage accessibility and ownership with these wallets, they’re also more prone to physical damage and malware infection.
Mobile wallets function the same way as desktop wallets. The difference is that you need to install them on your mobile. They may also be subject to security risks but are more flexible when it comes to exchanging currencies.
A web wallet is the most popular type of crypto wallet in the Philippines. You can access your web wallet by using a browser, and you don’t need to have the crypto wallet app downloaded on your computer or mobile.
Like the name suggests, cold wallets are designed for cold storage. This means you can store your crypto tokens in your cold wallet even in offline mode. Cold wallets specifically serve as vaults. You may also connect to the internet without compromising a cold wallet’s basic functions.
Here are some examples of cold wallets:
A hardware wallet is secured, preventing your private keys from being exposed online. Private keys of the hardware wallet are kept on a physical device such as a hard drive. If you have a large amount of crypto, you may want to explore a hardware wallet.
Paper wallets are physical pieces of paper that contain all the information necessary when accessing your cryptocurrency. They offer security, too, because they prevent your keys from being exposed online. But since it’s a paper document, you’re vulnerable to lose your funds when you lose your paper wallet.
What are the Features of a Crypto Wallet?
Crypto wallets are generally made up of two different keys which permit your use of your blockchain account.
Public Keys vs Private Keys
Keys in crypto are commonly made up of a string of numbers and letters that are randomly generated. Public keys serve as a bank account. These can be shared with others without compromising your crypto wallet’s security. Public keys also let you receive cryptocurrencies in your wallet.
On the other hand, private keys are used in cryptography and often serve as your wallet’s password. A private key is proof that you own a blockchain address .
Other Features of a Crypto Wallet:
- Two-factor authentication – Also known as 2FA, this is an added level of security that will not require your username or password. But you may need to confirm or verify some personal information you’ve provided during the signup.
- Re-generation of new public key – Public keys need to be re-generated every time you make a transaction. Since public keys are accessible by anyone, the generation of a public key will enhance your crypto wallet’s security.
- Recurring invoicing and billing – This is a crypto wallet feature that lets you save accounts for regular invoicing and billing.
- Auto logout – Another security feature of a crypto wallet is the auto-logout which provides a timed logout from your wallet in case of prolonged inactivity.
What is the Best Crypto Wallet in the Philippines?
Cryptocurrencies continue to grow in the country. And if you’re looking to try one out, here are a few of the best options for a crypto wallet in the Philippines.
You may be familiar with Coins.ph as a mobile payment platform. However, you can also buy and store digital currencies in the Coins.ph wallet even without linking your bank account to it. Coins.ph was founded in 2014 and is considered one of the first blockchain-backed platforms in the country.
A multi-asset investment platform, eToro is a social trading platform and investment network where users are not only given the chance to trade but also to socialize and learn.
eToro was founded in 2007 with the aim to make trading easier to understand. And with your eToro credentials, you can gain access to the eToro Money crypto wallet, which boasts of multi-signature facilities, high-level security features, and standardization protocols.
Abra is a crypto wallet that lets you do more than trade. By downloading the Abra mobile app, you can buy, borrow, and earn interest from your crypto. Abra lets you benefit from all your transactions―get 0.5% cash back on every trade, or earn up to 13% on crypto or USD stablecoins.
Metamask is a global community for blockchain technology enthusiasts. It aims to empower individuals who wish to be part of the decentralized web. This gateway and crypto wallet in one allows its 21 million users to explore a wide array of blockchain applications.
The Ronin Wallet was built by Sky Mavis―the same company that started and advanced one of the biggest blockchain games worldwide―Axie Infinity. This crypto wallet works like any other crypto wallet in the Philippines: store, transfer, trade, and receive cryptocurrencies.
The Exodus Wallet is created with flexibility, making it convenient for those looking to have a crypto wallet for mobile, desktop, and hardware. Exodus breaks the barriers to cryptocurrency literacy, making crypto trading more fun and enjoyable for everyone.
Another secure crypto wallet on this list is Guarda. It’s a non-custodial platform for cryptocurrencies, allowing you to have full control over your funds. Guarda was initially launched in 2017 to store Ethereum until it expanded to support more than 10,000 digital assets.
Trust Crypto Wallet
Trust Wallet is a secure crypto wallet in the Philippines that lets you buy crypto with a card and exchange cryptocurrencies instantly. It’s a reliable digital platform that gives you the chance to create a blockchain wallet without collecting your information.
Last but not least is Cryptonator, which is an all-in-one Bitcoin wallet that enables direct transactions for multiple cryptocurrencies. Cryptonator allows you to build your crypto portfolio with over 500 supported cryptocurrencies.
|Crypto Wallet||Features||Supported Cryptocurrencies|
Read more: How Much Bitcoin Do You Need to Buy a Car?
What are the Pros of Cryptocurrency Wallets?
The cryptocurrency ecosystem can seem very complex for those who are not familiar with its ins and outs. In this section, let’s break down the advantages of a crypto wallet in the Philippines.
Access to Different Types of Cryptocurrencies
Using a crypto wallet in the Philippines as an investment platform allows access to different types of coins and currencies. Wider access to different cryptocurrencies means a better chance to diversify your investments.
Depending on your choice of wallet, creating a crypto wallet account is as easy as signing up for any mobile app.
Security of Account and Transactions
With the use of public and private keys, you’re ensured that your cryptocurrency ownership is also secured.
Through the use of a crypto wallet in the Philippines, you get a view of your transactions and investments in real-time. You’ll be able to plan out your trading activities and maximize your crypto wealth’s potential.
What are the Cons of Cryptocurrency Wallets?
If there are benefits to using a crypto wallet, of course, there are also drawbacks and disadvantages. Here are some to take note of.
Can Be Subject to Scam or Fraud
Digital wallets, including the best cryptocurrency wallets, can be subject to online fraud and other forms of scam. Make sure you keep all your personal information, passwords, and private keys confidential.
Although signing up or creating an account is free for most cryptocurrency wallets, there are some fees that go with using their features. Some charge fees for transfer and conversion of your funds to Philippine peso.
May Not Be Recommended for Large Amounts
Cryptocurrency wallets let you do other transactions that require Philippine currency and other acceptable currencies in the platform. Due to potential risks of online fraud, it may not be advisable to store huge amounts of cash.
Constant Updates on Information Can Be Confusing
As a form of security measure, you may need to regularly update your passwords and other account details. Even if you have the tendency to forget and get confused, you need to do so. A strict verification process is required.
Things to Consider When Setting Up a Crypto Wallet
Setting up your crypto wallet depends on the platform requirements. For instance, Binance may need you to provide some information that eToro doesn’t. Here are a few things you should consider before setting up a crypto wallet in the Philippines:
- Decide which type of wallet to choose – Do you prefer a web-based wallet or any of those cold wallets available?
- Find out what cryptocurrencies are available – Does your chosen crypto wallet allow you to trade the currency of your choice?
- Check for initial funding requirements – Some wallets may require as low as PHP 100 to create an account. However, if the wallet is not Philippines-based, you may need to prepare a bigger amount of initial funding.
How Do You Top Up a Crypto Wallet?
Just like setting up a crypto wallet, topping up also depends on the platform. However, in general, most wallets have the top up feature which you need to click on.
Then a prompt may appear, allowing you to choose your payment method, amount to cash in, and other details of your transaction.
You may also be redirected to a payment gateway to secure your top-up transaction. Most crypto wallets in the Philippines also send a notification if your transaction is successful.
How Do You Safely Use Crypto Wallets?
Since crypto wallets are vulnerable to online glitches, you should be able to implement safety measures when using them. Here’s how:
Use a Secure Internet Connection
Connecting to public networks can be very risky especially if your passwords are not strong. Using your own data and Wi-Fi connection at home can reduce the risk when accessing your crypto wallet.
Change Passwords Regularly
Your passwords may be patterned from your personal information and previous passwords you’ve used from your account. Using a variety of passwords and changing them regularly will enhance your wallet security.
Use Different Types of Wallets
You might already be comfortable with any of those crypto wallets in the Philippines. But, when trading, it may be more beneficial to use several wallets so your investment will not be slumped in one account.
Embarking on a cryptocurrency journey requires research. Also, learning how a crypto wallet in the Philippines works can help you maximize your crypto experience and prevent mistakes that might put your investment at risk. Before joining the crypto trend, make sure to do your part first. Read and learn from legit and informative resources, take note of useful insights, and explore your best crypto options out there.
-  PHL tops NFT ownership out of 20 countries — Finder (Business World, 2021)
-  Blockchain Address (Coinfirm, 2021)
-  eToro
-  Abra
-  MetaMask
-  Ronin
-  Exodus Wallet
-  Guarda
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.