The first e-wallets appeared back in the 90s of the last century when the Internet began to gain significant popularity in many developed countries. They were allowed to keep money and carry out various financial transfers much more accessible than banks. With the advent of cryptocurrencies, there was a need to create similar software based on the blockchain. It made all payments much safer, faster, and cheaper. Crypto license in Lithuania allows you to create your own wallet and work on it legally.
What are the functions of a crypto wallet?
In general, a crypto wallet performs almost the same functions as its fiat counterpart:
- Storage of currency;
- Making payments;
- Receipt of transfers, including international ones;
- Storage of translation histories and much more.
People compare crypto exchanges and wallets. The first ones are designed so that you can profitably exchange currencies and earn on changes in their value. Experts do not advise storing large amounts of money here, as exchanges are often subject to hacker attacks, so many people lose a lot of money.
To protect your finances, it is better to use crypto-wallets. Here, protection is much better, and it also becomes possible to pay for goods and services profitably.
Today there are 4 types of wallets:
- Software. The users install the appropriate software on their computer or phone. It allows them to control all financial transactions using crypto assets.
- Web/Hosted. It is stored on the Internet. These sites are very similar to standard e-wallets. Their main advantage is that you can exchange more assets here, but the protection of such services is worse.
- Hardware. It is a USB drive where software is stored to keep currency and perform various transactions. The cost of such equipment depends on the storage size and the number of coins.
- Paper. Both passwords are generated as a QR code and printed on paper. The recipient will be able to scan this code to receive their money in the future. Usually, this variety is used in tandem with other crypto wallets.
Software and Web/Hosted wallets have a hot storage type. It means they have a permanent connection to the Internet. Using them is not difficult; you can easily understand this system. Any financial transfer is completed within 30 minutes. However, the level of protection here is a bit worse.
Hardware and Paper wallets do not have a permanent connection to the Internet, ensuring almost perfect security. But, you can quickly lose storage media, the principle of working in them is much more complicated, and the speed of operations execution leaves much to be desired. In addition, in the case of a paper wallet, people can only transfer money to a person who is near to them.
Regardless of what type of wallet you are interested in, to create it you need to obtain a crypto license in Lithuania. This will allow you to work completely legally.
Benefits of using
The main benefit of a crypto wallet is a high level of security. You may not be afraid that an attacker will be able to enter the system and debit your money or intentionally intercept financial translations.
However, the use of crypto wallets has other advantages:
- Easy to install;
- Lack of state regulation;
- Low cost of services;
- You can keep NFT;
- No impact of inflation and much more.
Many users are disillusioned with the banking system and are looking for an alternative way to make financial transfers, especially international ones. The fact is that SWIFT is quite expensive, the speed of transactions leaves much to be desired, and government agencies can block the payment. Blockchain allows using crypto assets that are not controlled by anything. In many European countries, they understand that the banking system has flaws, so they do not prevent the use of such wallets. You can easily get a cryptocurrency license in Lithuania so your company can function legally.
As for the cost of services, each blockchain charges a fixed fee for its services. Its size may depend on how urgent transfers you need to make but do not depend on the transfer amount. As for hardware wallets, you need to buy a particular model, which costs an average of 150 USD to 200 USD.
As for NFTs, most wallets allow you to store them and resell them. Moreover, smart contracts are used to ensure the security of such operations.
Today, anyone can create a crypto wallet. To do this, you need to obtain crypto license in Lithuania. To get such a permit, you need to register a company with at least 2 employees and a charter of more than 2500 Euros. Your employees must have an excellent reputation and no problems with the law. After completing all the documents, you must contact the FCIS with the appropriate application.
The license is issued indefinitely, but the regulator can revoke it if they find any problems or violations.
The exchange of cryptocurrencies is not subject to VAT. Financial transfers are regulated in the same way as fiat ones; the principle of securities holds NFT and other tokens. If you have any questions or problems, you can contact our agency. Our experts will answer all your questions, help you collect the necessary documents, and submit them to the relevant authorities. Both a resident of Lithuania and a foreigner can obtain a license.
If you work with crypto assets, the wallet will be a great solution. There is a type of wallet, and the choice depends on the amount you will store, additional features that interest you, and your experience. It will allow not only to keep assets but also to perform various operations. The level of protection here is many times better than on any exchange.