Due to the rise of digitalization, it is likely that you have come across the terms “cryptocurrency”, “bitcoin and Ethereum”, “e-wallets”, and the likes. All these terms have been a hot topic on the internet lately, but what really is all that? Why is everybody turning to this trend? Today, you will find all that you need to know about e-wallets in this handy guide.
#1 What Is An E-wallet?
To put it simply, an E-wallet is like your average everyday wallet but without the tangible form. It is an electronic, digital version of a regular wallet. Since it is digital, it is used for the purpose of storing your digital currency, or cryptocurrency as it is popularly known as. With your digital wallet, not only can you store your e-currency but you can also make transactions with it, like online payments and many more.
#2 How Does It Work?
Understanding an e-wallet is not as difficult as you might think. In fact, it is pretty easy, just like your regular, physical, wallet. In an e-wallet, everything you would need related to handling money, like an account, card, and the money itself, will be electronic. Since it is digital and not tangible, you do not have to be bothered about by the hassle of carrying it. In addition to that, e-wallet, being digital, makes your money more secure.
#3 Pros of E-wallet:
Let’s have a look at the pros of e-wallet.
1. It compresses all your money into one small platform and rids you of the hassle of carrying a wallet or even a credit/debit card.
2. Since all the matters in an e-wallet are handled digitally, it reduces the chances of losing your money in a loot.
3. One of the several benefits of cryptocurrency is that transactions made through an e-wallet are not traced. This anonymity promises security in terms of identity and privacy.
4. With your e-wallet, you can make payments from anywhere in the world.
5. When shopping, your e-wallet enables you to make exact payments and saves you from the trouble of getting the exact amount of cash in change.
#4 Cons of E-wallet:
Having gone through the pros, an e-wallet also has its cons. They are as mentioned below.
1. As it goes without saying, an e-wallet deals with cryptocurrency. Since cryptocurrency is digital, it is vulnerable to hacks.
2. If for some reason you do not have your mobile phone at hand, you will also not have access to your e-wallet. This can be troublesome if you need to make urgent transactions.
3. Once you have made any transactions with cryptocurrency and it has been registered, it cannot be reversed.
4. It is possible that an e-wallet may not be accepted in all fields. Some organizations prefer transactions in the traditional way.
#6 The Popularity of E-wallets:
The recent years of this decade have seen a rapid rise in the popularity of digital currency. This, in turn, gave way to the frequent use of e-wallets. E-wallets have made money management a much easier matter.
Digitalization has offered great convenience and boos to human progress. If you too are intending to switch to an e-wallet, here is all that you need to know about it so that you can make the right decision.