How to Earn Crypto Wallet

How to Earn Crypto Wallet
9 Min Read

Crypto wallets are the starting and access point for any transaction in the cryptocurrency world.Banks and other intermediaries simply do not have any here.

Crypto wallets are the starting and access point for any transaction in the cryptocurrency world. Banks and other intermediaries simply do not have any here. When that is mostly free of charge. Let's see their sources of profit. Above all, it is necessary to talk a little bit about the crypto wallets themselves: they are usually free programs or mobile applications that allow to work with cryptocurrencies such as storage, transmission, receipt and control of public / secret keys. Generally they all seem simple, but some are very popular and even earn a lot of money. How can this be?

The governor does not receive any profit from transactions

There is aberration that the crypto wallets earn by taking commission on transactions. This misguidance has been entrenched because some exchanges (which they mistakenly consider conservative) receive significant commissions in exchange for taking out the money (and sometimes in exchange for depositing it). Thanks to the bitter experience of interacting with the traditional financial system, we assume that any broker involved in the process needs to take his share. As for the fees collected by the governor, in fact it is the payment of services for the miners who organize the transaction in the register. The governor has nothing to do with mining. We present a description of this process from Coinbase:

"Coinbase generally does not charge a commission for using the digital wallet service. Virtual currency conversions to the Coinbase platform address can entail the network commission (for example a Bitcoin metallic reward) that a user has to pay. All these fees are reported before the transaction."

But there are exceptions as well. Bitgo Signature Wallet Signs 0.25% of all incoming and outgoing payments for safe storage of funds for business. Bitgo is for large companies that need to store a digital asset, not for ordinary people.

Most portfolios maintain their viability at the expense of partnership agreements

Its main business model is thus limited (at least for the time being). The portfolios earn substantial partnership rewards from external services thanks to the large number of users and the wide spectrum of use. The most famous of which is the ability to instantly switch cryptocurrencies via Shapeshift or Changelly services. The latter of them have a very generous partnership program because prices are usually much higher than market prices. Customers pay comfort, while portfolio designers receive the reward from the service provider.

Finally, some wallets allow the purchase of digital assets directly from a credit card. These services are provided in cooperation with companies such as Simplex, which pay designers a reward for each process. Users pay to rest so they reward wallet designers.

Other than that, the portfolios create passage on stock exchanges that are willing to pay high discounts on new customers. Everyone has partnership programs, and even systemic portfolios (which cannot be said to be free) often participate in such events.

The financial indicators of the designing companies are often unknown, but it can be said with certainty that 90% of its revenue comes from one or several sources mentioned above.

The basic problem of systemic wallets Systemic wallets

(or "cold warehouses") are usually a very simple business model in which the buyer pays. Prices range in the range of $ 50-300. Producing portfolio itself does not cost dearly (about $ 20) so the profitability of projects such as these is high which helps conduct generous partnership programs (eg Trezor offers a 10% cashback). However, in reality, this model has one drawback, which is only one-time purchase. The average customer has no need to switch his wallet with the new one every year (other than the smartphone), he buys a wallet (and a second for backup) and here his interest ends. Theoretically, portfolio producers cannot offer him anything new. Designers know this very well so they include software links on various possible services or try to get out into new markets with a future.

Hybrid portfolios / stock exchanges

Some portfolios allow the purchase of cryptocurrency, but other than their integration with the third party, they work with the stock exchange directly. For example, Harrow or (possibly the largest cryptocurrency portfolio to date) allows the purchase of bitcoin and ethereum. They charge commercial commissions and sometimes earn from regular currency conversion.

Some projects never pursue interests

Many cryptocurrency wallets are open source code projects that are not profit-making, but their freeware usually affects the convenience of use. And other projects (such as Ethos) do not require profit because they collected a huge amount during the IPO so achieving service income is not a priority. Finally, some portfolios are free because they are under the control of companies that earn from other services, and the portfolios have business costs for them. This is for example, Trust Wallet. The wallet was purchased by Binance Exchange so it is completely FREE (and it will likely remain that way).

New frontiers

Thus, portfolios relate to either revenue from partnership programs or one-time purchases made by users. Hehti that partnership programs are a safe basis for long-term growth as no one knows when to cancel them. Is there a stable approach to the development of crypto wallets? So far, it is difficult to answer this question. Ultimately, every consumer will have their own wallet like smartphone or TV. These projects will gain a lot in the industry as well as browsers or mail clients on the Internet. When that is the partnership programs or even the buying / selling operations they will become a basis for offsetting operating expenses (which are rather large). In the future, new income items will emerge that will keep the cryptocurrency portfolios evolving. It is difficult to say exactly what it will look like. Additional revenue may appear in the form of direct or indirect payments because we are all used to paying for software and services. The presence of a lot of paid mobile applications other than games indicates that this idea is perfectly possible to investigate. Of course, the sector must evolve, but the process will proceed only after new funds appear and new rules are imposed and the economy of cryptocurrencies moves to the next level. Cryptocurrency portfolios are still in their embryonic state while they are the bedrock of the cryptocurrency economy.