Cryptocurrency wallets with withdrawal to cards or EPS (electronic payment systems) are a convenient way to cash out digital assets. They are quite safe if you choose proven services, are suitable for both storing and managing assets, and often cooperate with payment providers that allow you to withdraw crypto into fiat as profitably as possible. The editors of Profinvestment.com offer an overview of several custodial and non-custodial services that provide withdrawal to cards or third-party payment systems.
What is a cryptocurrency wallet
Storing cryptocurrency consists of storing private and public cryptographic keys to it:
- The private key is used to confirm sent transactions.
- Public key is a wallet identifier in the blockchain.
Both keys are a long sequence of letters and numbers. The private key, also called the private key, must be kept strictly confidential. Open information is not classified information.
To say that cryptocurrency is stored in a wallet is not entirely true, although this is a common expression for simplicity. In fact, cryptocurrency cannot be stored - the user’s balance in the wallet is calculated by subtracting outgoing transactions from incoming ones. The difference is the unused output that you can spend.
Wallets can be custodial or non-custodial. The former relieve the user of the need to keep track of the keys and store them themselves. The option is convenient, but not safe. It is better to choose wallets of the second type, then your keys will be saved to your phone or computer, and developers will not be able to access the funds. They only provide an interface for interacting with the blockchain.
Local Bitcoin wallets in the form of an application for computer and mobile
As noted above, the thin client does not require downloading blocks. The fact is that all data is available to you on the server that the client uses. It is most convenient to manage such wallets from a laptop or tablet. They are quick and comfortable to work with.
There is only one BUT! Anything that needs to be verified is done by a third party, which has a negative impact on security. But you manage the keys yourself. So, what apps can you use for thin BTC wallets?
Electrum - regular and portable version (editor's choice!)
This is one of the most popular Bitcoin wallets for personal computers. It works very quickly and is easy to use. Electrum uses third-party servers to confirm transactions, which reduces the amount of data downloaded, but at the same time reduces the level of security and anonymity, since your data is sent to centralized servers that speed up the process, but allow you to associate actions with your IP address. We can say that this is the best bitcoin wallet.
You can download the Electrum Bitcoin wallet on the official website https://electrum.org/
This application speeds up the workflow on the Bitcoin network to the maximum and minimizes resource consumption. After you install the application, you will be asked to select a server to which you will subsequently connect. You can select from the list provided, or offer your own server.
After these steps, a secret phrase (seed) will be generated, which should be written down somewhere, or printed out under the guise of a QR code. In this case, there is no need to create a backup wallet.
In addition, Electrum allows you to use offline storage if you have a computer that is not connected to the network to increase security. The wallet can be restored using a special mnemonic code (12 words), and you can also use Tor to increase anonymity. Also Electrum is a bitcoin wallet in Russian.
The main advantage of this client is the minimization of used resources and fast work with the Bitcoin network. Most operations are performed outside the client, on a server, which you can select from the list or specify your own. To work with Electrum, a special seed code will be generated, thanks to which there is no need to create backup copies of the wallet. One of the advantages of the program is its support for Android devices, which greatly simplifies the use of the client.
Jaxx multi-currency wallet
One of its main features is support for full storage of several cryptocurrencies at once, between which you can switch, like between dishes at a festive dinner, and prompt addition of the most trending cryptocurrencies before everyone else adds them.
You can view information about tokens using conveniently switchable tabs. The token details display: Transaction history (not in such detail as in Electrum, but still) and the current Bitcoin address (QR + symbolic) with a convenient copy to clipboard icon.
However, unfortunately, the abundance of style is overshadowed by somewhat reduced functionality. For example: fixed commissions (for which part of your coins are “reserved” in advance, regardless of your consent, and the more coins you store, the more coins are “reserved”), the inability to import third-party Accounts (automatically excludes the possibility of conducting payments for the company) and A 4-digit password, which is as easy (or difficult?) to guess as a PIN code for a bank card.
The JAXX toolkit allows you to:
- View your Seed key (here it is called “Backup Phrase”, which does not change the meaning)
- See private keys (Bitcoin addresses are shown in pairs with the corresponding keys)
- Synchronize devices (one JAXX for all your devices)
- Successfully split ETH/ETC if it suddenly turns out that you have not done this yet and you had ETH tokens at the time of the network hard fork.
You can download the multi-currency wallet on the official website https://jaxx.io/
Exodus multi-currency wallet with recovery function by e-mail
Very similar to Jaxx, the only significant difference is the “e-mail backup” function, when the Seed key of 12 English words is not only shown to you, but also sent to your email in encrypted form.
The Exodus wallet is available for download at https://www.exodus.io
Exodus Wallet Features:
- Many interface themes
- Style, design
- Visual diagram of your portfolio (convenient to impress interlocutors)
- Fixed commission of 0.0003 BTC (according to the developers - for speed)
- Setting any password (numbers, letters, length)
- Prompt, instant and friendly Support represented by two wallet developers.
How does a withdrawal from a wallet to a card occur?
There are two main ways to withdraw cryptocurrency to fiat through wallets.
The first is to use the built-in exchanger. Often used in custodial wallets or payment systems, but not only. For example, Trustee Wallet is a non-custodial wallet that withdraws using external exchangers if there is a suitable payment direction. More details below.
The second is the use of payment providers specially designed for this purpose: Mercuryo, Simplex, Banxa, etc. These systems quickly convert cryptocurrency into fiat money, charging an additional commission for this service, in addition to the wallet commission.
Matbea
Matbea is a hot wallet that you can get after registering on matbea.org or through the Matbea mobile application. Registration is possible both by phone number and via email.
Matbea is a secure cryptocurrency wallet. Several wallets are provided with different public keys for different cryptocurrencies. Currently these are Bitcoin, Litecoin, Dash and Zcash. The number of supported coins is expected to increase soon. For existing ones, a convenient and intuitive web interface is provided, through which it is easy to both send and receive coins. It is important not to conduct transactions with a cryptocurrency volume less than the minimum allowed, as you may lose coins. At the moment, the minimum for Bitcoin is 0.00015 BTC.
Sending Bitcoin to another wallet can be done with one of three priority types: low, medium and high. The higher the priority, the higher the commission, but the faster the transfer.
Matbea is also an exchanger. It’s easy to buy, sell and exchange about 50 cryptocurrencies at any time.
Matbea wallet is suitable for beginners. And, although it is hot, it is reliably protected by a three-factor authentication system:
- By PIN;
- Code from sms;
- Email password.
If the user has any questions, the Matbi team has prepared detailed video instructions.
Other withdrawal methods
Not only wallets, but also other types of platforms have the ability to withdraw cryptocurrencies to cards. You might also consider:
- Cryptocurrency exchanges. Many of them support cashing out digital coins into fiat to a bank card or e-wallet.
- Exchangers. You will need to choose a convenient method for receiving money, then send cryptocurrency from your wallet.
- p2p exchanges. They work on the same principle as the previously described TotalCoin wallet. Direct exchange between users with fiat transfer past the exchange, directly to the provided details.
- Telegram bots. Services for exchange using the Telegram messenger can be independent or linked to p2p exchanges and exchangers.
These are the most popular options and are often used due to their convenience and affordability. There is also the option of using a crypto ATM; some of them support transfer to a card, but most issue cash payments.
How to choose the best crypto wallet
Based on the rating, we can compare the results obtained to choose the best wallet for cryptocurrency and identify the disadvantages of other devices:
- Cryptocurrency wallet in Russian – Copay
- The most reliable and secure cryptocurrency wallet (judging by reviews) is Bitcoin Core.
- The most popular cryptocurrency wallet is Exodus.
- The best crypto wallet for ICO is MyEtherWallet.
- The choice for users of a large number of cryptocurrencies is Trezor one, Jaxx.
- The most reliable cryptocurrency wallet is Ledger Nano S.
- The leader of the reputation rating is Trezor one.
- The best choice for working online is Bread.
- To work on a mobile phone - Jaxx.
- The choice for working on a computer is Armory.
- The most profitable crypto wallet is Bitcoin Core.
- Best crypto wallet for smartphones – Samourai
The final choice of a wallet for working with cryptocurrencies should depend on the individual needs and preferences of each specific user.
FAQ
What is a cryptocurrency wallet?
A service through which interaction between the user and the blockchain is carried out - sending and receiving cryptocurrencies.
What is the difference between a custodial wallet and a non-custodial wallet?
The first one stores user keys itself, the second one lets the owner do this.
Is it possible to cash out cryptocurrency from a crypto wallet to a card or payment system?
It is possible, but not in every wallet. The article lists services that provide this opportunity.
Will conversion be expensive?
On average, 1-5% of the amount, but this is all very individual and depends on the chosen currency, method of receiving funds, payment provider, etc.
How quickly are funds credited?
It depends not only on the wallet, but also on the bank/ESP. According to the regulations, up to 3 working days, in fact it usually takes up to 20 minutes.
Will the tax office have any questions about receiving funds on the card?
There may be, especially for large amounts. Therefore, your income must be declared to everyone who wants to work within the law.
How to create a Bitcoin wallet
Before directly naming the storage facilities, you need to decide on their types. For the most part, it can be considered that there are 2 main types:
- Hot Bitcoin wallet is an Internet-connected storage facility that can be accessed from a browser or application.
- A cold Bitcoin wallet is a physical wallet with cryptocurrency in the form of a USB device. They are also called hardware ones, and they provide the highest degree of security, although they are inferior in ease of use.
The first type of storage can be divided into several more types:
- A web wallet is a specific website that you need to visit every time you need to carry out some transactions with cryptocurrency.
- Desktop or desktop - a program installed on a computer through which all management is carried out.
- Mobile – similar to the previous type, but uses an application on a smartphone.
- A paper or paper BTC wallet is a regular piece of paper with a QR code or address, using which you can log into your vault via the Internet.
No one forbids using several types of crypto storage at once, in order to obtain the greatest convenience in one case, and maximum security in another.
Trezor Model T
Trezor Model T is an excellent hardware wallet for storing cryptocurrencies and other digital assets. It features a touchscreen display and allows users to securely store and encrypt Bitcoin keys. Additionally, the U2F (Universal 2nd-Factor) hardware token on Model T helps strengthen access control.
Although the Trezor Model T is highly capable, it is also quite expensive. At $190, it's even more expensive than the Ledger Nano X. However, if price isn't an issue for you, the Trezor Model T may be the best hard wallet option for your portfolio.
Coinbase
Coinbase is a popular cryptocurrency exchange platform that offers a secure crypto wallet for free. The wallet is “hot,” which means you will store your keys on a public network. However, it is a very secure wallet that does not require users to register. Additionally, most major banks can be connected to your Coinbase wallet.
However, Coinbase does not offer its own desktop clients. You will have to use a web interface or mobile apps to store your keys and manage your cryptocurrencies. Luckily, there is a Chrome extension available for desktop users.
