As a stock market trader for the last seven years, I’ve seen many innovations rise and fall before my eyes.
Emerging technologies always carry a shade of gray in the audience’s perception due to many unknown obligations.
However, Fintech shines differently among the finance, stock, and crypto sectors because it seamlessly integrates with them to provide an effortless trading experience.
I was reading an article recently that made me agree on a thing:
In the financial technology (fintech) sector, blockchain technology can reduce costs, eliminate intermediaries, and boost the efficiency of financial services. (Alpha Point).
Due to this amazing streamlined synergy between crypto wallets and Finance tech, I’m publishing an article that will give you a detailed overview of this topic.
Let’s begin this Odyssey!
Understanding Fintech.
As per my observation, fintech is one of the most revolutionary technologies in the world because it is creating new methods of achieving future-ready transaction technologies. Digiwallets, UPI, Insurtech, and blockchain wallets are some of the examples that are simplifying the payment solutions of the audience nowadays.
The integration of this innovation with crypto wallets is opening new opportunities for aspiring skilled traders that will simultaneously strike the growth of both genres.
Blockchain is currently the most trending investing option among the youth worldwide, and crypto wallets are making it more attractive by providing hassle-free and zero-delay transactions.
Well, this was just a glance at the fintech-crypto amalgamation, now let me give you a closer look at Crypto wallets.
What Are Crypto Wallets?.
Crypto wallets are nonetheless the most secure asset-storing platform on the web of online finance. Their encryption is out of the box due to the unique cryptographic keys available for every user in the blockchains.
I personally use these applications to ensure that my earnings are safe there because of their multi-layered codings and numerical algorithms making it very hard to hack.
In this domain, there are two different types of world: Hot wallets and Cold wallets, so let’s go further on them.
Did you know? The number of crypto wallet users worldwide reached 84.02 million in 2022, up from 76.32 million in 2021. (Polaris Market Research).
Types of crypto wallets
The different categories of money storage options in the crypto segment carry contrasting features, and you just have to choose the one that puts the most benefits on your desk.
Hot wallets:
They are the type of wallet I usually use the most as an active trader in the blockchain community. The reason for the robust usage of this category came from its convenience and efficiency in day-to-day transactions because they offer digital wallets, unique payment modes, and easy withdrawals. Features like these are possible for users due to various desktop and mobile applications available on the internet.
Cold wallets:
Cold wallets are the polar opposite of hot wallets not only in terms of identity but also in varying characteristics. They are typically offline solutions for storing cryptographic keys in the form of hard drives or paper wallets. I think the major usage of these notions is done by long-term investors to safeguard their investments from the threats of online domains.
Other than these options, there are new contenders like NFTs and Staking wallets that are also modernizing the blockchain ecosystem with their advanced software implementation for crypto users.
Which Factors Are Driving The Uptake Of Crypto Wallets?
In my opinion, there are fragments of factors responsible for the growing trend of using this innovation, and now we will take a closer look at some of them:
Crypto Presales
This process is more like a fundraising event for newly launched cryptocurrencies in the blockchain markets. Crypto presales are usually organized by project managers or startups to accelerate the initial hype and stock listing price of their fungible tokens.
These funds and defining prices are used for running marketing campaigns and improving the optimization of the new currency so that it can be protected from backlash and security scams in the future.
Emergence of Decentralized Finance
Decentralized finance or DeFi platforms are generally used today to lend, borrow, and earn interest on cryptocurrencies without any hidden boundaries. This technology has seen its seamless growth due to effortless operations, with new blockchain tokens like ETH (Ethereum) and Dogecoin making it interactive with a large audience.
They provide authenticity and trust in the trading community by scanning junks of scammers who are trying to disrupt this platform with unfair means. KYC and AML systems provide easy identification access to genuine users while also protecting it from the core.
Intriguing insights The data in this graph shows the majestic growth of the Global Fintech Market, which is expected to grow at a CAGR of 25.18% by the year 2032.
The Role Of Crypto Wallets In Fintech
Although I think both were created for performing contrasting tasks when they were innovated now due to technology curations they are blended with perfection to open new means of payment gateways. Crypto wallets work astonishingly with fintech programs to manage and expand the connectivity and transparency of digital assets.
Their relationship with each other seems very comprehensive when you have to perform transactions in uncharted terrains, making it ideal for every individual who wants privacy payments without any long-lasting delays.
Wrapping Up
To sum up this entire journey, my final words would be that these tech innovations in investment segments are open doors for people who are chasing financial freedom using blockchain and the stock market. Fintechs are constantly working on improvements to make this amalgamation with crypto wallets even more lucrative and consumer-friendly to attract the new-gen audience.
