Best Mobile Wallet Types for Bitcoin ATMs

5 Types of Wallets You Can Use at a Coin Cloud BTM
By 
Coin Cloud Team
, published on 
November 9, 2020
Best Mobile Wallet Types for Bitcoin ATMs

To use a Bitcoin ATM, you need a mobile wallet. It can be any mobile wallet, really, as long as it has the ability to generate or scan a QR code. But certain wallet types will give you a better user experience at a BTM.

These are going to fall into several categories, including custodial vs non-custodial, software vs hardware and hot vs cold.

Custodial vs Non-Custodial

  • Custodial: The private keys are held by a third party while you simply make transactions that they allow.
  • Non-Custodial: You have private keys that allow you to own and control your funds directly.

Software vs Hardware

  • Software: The wallet is digital, installed on a computer or phone or accessed via web browser.
  • Hardware: The wallet is a physical item, like a hard drive or flash drive.

Hot vs Cold

  • Hot: The wallet is connected to the internet and therefore risks hacking.
  • Cold: The wallet is not connected to the internet, but stored offline as “cold storage.”

Here are 5 types of wallets you can use at a Coin Cloud Bitcoin ATM:

1. Custodial Exchange Wallet

If you regularly use an online exchange or broker, you likely have their app as well — which is not always the same thing as their wallet. The regular app is usually a “custodial” wallet that you can keep on your phone to access your online exchange account on the go instead of on a computer.

While most crypto wallets offer support for at least a few different virtual currencies, online exchanges tend to have more options — some of them quite obscure. So, if you believe variety is the spice of life and you don’t get confused by too many alternatives, this might be a good choice for you.

Most people don’t recommend keeping your bitcoin in an online exchange account because of the threat of hacking, but if you choose to do so, it’s an easy route to go. And you can use most of these apps at a Coin Cloud BTM.

Pros:

  • Large selection of digital currencies
  • Works in tandem with your online exchange account
  • No private keys to lose

Cons:

  • Not always user friendly
  • Choices can be overwhelming
  • Not all currencies are compatible with other platforms
  • Exchanges have the highest risk of being hacked
  • You don’t control your funds since you’re leaving them in “custody” with the exchange

2. Non-Custodial Mobile Wallet

Some online platforms have non-custodial wallets in addition to their custodial platform apps. The non-custodial wallets are considered more secure than the custodial apps, and you don’t need an exchange account to use the wallets.

These wallets might let you trade the platform’s own tokens, like with Binance. So, for example, if you use or hold the Binance USD stablecoin (BUSD) or their proprietary Binance Coin (BNB), you might want to use the Binance-owned Trust Wallet. Others let you store digital art, collectibles and other ERC-20 Ethereum tokens, like the Coinbase Wallet.

In addition, there are a wide range of mobile-only wallet apps that don’t have online exchange counterparts. These work on your smartphone, and some of them promise options like facial recognition instead of seed phrases, or the ability to earn interest or bonuses. This list is constantly changing, and it’s important to check the terms and conditions of each wallet app before deciding to use it.

You can use any of these mobile wallets at a Coin Cloud Bitcoin ATM, as long as they have a QR code option for receiving or sending funds.

Pros:

  • Easy to access if you have a mobile smartphone
  • Wide variety of offerings to choose from
  • Various benefits depending on the app

Cons:

  • Not always user friendly
  • Some are obscure or difficult to vet
  • Choices can be overwhelming
  • Not all currencies are compatible with other platforms
  • If you lose your private keys, you can lose your bitcoin

3. Hardware Wallet

While using a hardware wallet at a Bitcoin ATM might not be the first idea that comes to mind, it’s possible if it generates a QR code, or if you can make a QR code for your wallet.

Of the two top manufacturers, Trezor wallets often let you create a QR code right on the hardware screen. You can then take it to a Coin Cloud Bitcoin ATM, or simply take a photo of the QR code to scan at the machine. Ledger Nano wallets don’t generate a QR code, but you can make a third-party one using an online QR code generator.

Pros:

  • Secure from hacking
  • Includes additional built-in security features
  • Can be locked up for safekeeping
  • Has backup recovery options

Cons:

  • You might have to use third-party software
  • It takes some technical know-how
  • You need to transfer to a hot wallet to use your money

4. Paper Wallet

Love ‘em or hate ‘em, paper wallets can be used at Coin Cloud Bitcoin ATMs if they have a QR code printed on them. In fact, some other brands of Bitcoin ATM actually print out paper wallets. (Coin Cloud doesn’t because we believe it’s a more environmentally-friendly process to do everything digitally … plus, do you really think you’re not going to lose that scrap of paper, or accidentally send it through the wash? Not to mention, they do fade over time!)

But paper wallets are simpler and more user-friendly cold wallet options that you can use at a Bitcoin ATM. So, if you like your crypto to be “unplugged,” but you’re not comfortable with the technology behind a hardware wallet, this is likely your top choice.

Besides other types of Bitcoin ATMs you can get a paper wallet with a QR code through online random address generators like BitAddress and BitcoinPaperWallet.

Pros:

  • Secure from hacking
  • Can be locked up for safekeeping
  • Can be given as a gift

Cons:

  • Easy to lose or damage
  • Print fades over time
  • There’s no backup available
  • Anyone who holds the paper wallet has access to the funds
  • You need to transfer to a hot wallet to access your money

5. Coin Cloud Wallet

Coin Cloud has its own secure, non-custodial mobile wallet that fits under the Non-Custodial Mobile Wallet category in many ways. Like any other mobile wallet app, you install it on your phone, safeguard your private keys, and can use it to store or spend your virtual currency. But the Coin Cloud Wallet is tailor-made to give a more optimal experience at a Coin Cloud Bitcoin ATM.

So if you use Coin Cloud BTMs, this is hands-down the top choice for you.

Some of the proprietary things it lets you do is verify your Coin Cloud account from the comfort of your home, find the closest Coin Cloud Bitcoin ATM, set up your sell in advance, reserve your cash at any machine for up to 48 hours, and save time during the transaction. We consider it a vital part of the Coin Cloud system if you really want to save time and hassle. In addition, while other wallets might delay your transaction through multiple confirmations, the Coin Cloud Wallet only requires one — so you’re done in 10 to 15 minutes.

Pros:

  • Saves you time at a Coin Cloud Bitcoin ATM
  • Lets you verify your Coin Cloud BTM account from anywhere
  • Allows you to reserve cash and set up your sell in advance
  • Only requires one confirmation on the blockchain
  • Easy to access if you have a mobile smartphone
  • User friendly

Cons:

  • If you lose your private keys, you can lose your bitcoin (so … don’t lose them!)

What is Coin Cloud?

Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 3,500 locations nationwide, in 47 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell 30+ virtual currency options with cash.

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