Brands must keep a keen eye out for trends and be ready
to shift their strategies
Influencer marketing has maintained its value
through the existing influencer-follower relationship.A new year always brings about much speculation in the world of marketing. Recent years have seen a seemingly endless stream of new technologies, platforms and tactics that marketers and brands can leverage to stay ahead of the curve. Throughout 2017, influencer marketing has maintained its value through the existing influencer-follower relationship, and it has continued to evolve. While the end of 2017 brought with it new technologies and opportunities for brands that incorporate this marketing tactic, we expect to see some of these developments really gain their momentum and mature in 2018. Below are a few trend predictions and tips for marketers and brands that want to start the year with strong influencer marketing strategies.
Influencer network as a service
By now, most marketers now know what an influencer is and have already incorporated these content creators into their marketing strategies and budgets. A recent survey revealed that 61 percent of brand respondents had worked with digital influencers within the past year. As brands become more comfortable with the influencer marketing process and better understand the additional value that brand-tailored campaigns can provide, some are looking to take a more active role in establishing their own influencer relationships and managing the entire campaign process.
One way that brands are taking more control is through a new model known as influencer network as a service. This model gives brands the tools they need on an easy-to-use platform so that they’re fully equipped to manage their own campaigns and influencer relationships directly, making for a more streamlined experience. Additionally, brands have the option to build their own custom-created networks from scratch, catered to a specific niche audience or designed for a select campaign. These influencer networks as a service give brands a new way to create meaningful content by working with influencers whose values are aligned with those of the brand. This type of custom fit cannot always be achieved with a premade influencer network.
Social platforms catered to influencers
Brands aren’t the only ones taking note of the power of influencers. As more marketers plan to launch influencer campaigns or increase their influencer budgets, social media platforms are stepping up their games to provide a better overall experience when working with sponsored content. In 2017, we saw social platforms create features and updates that simplify and enhance the influencer marketing process in an attempt to draw in more brand and influencer activity. Big changes came to Facebook marketing, including a feature that allows brands to share influencer posts directly with chosen audiences and an option to select which influencer can tag the company in branded content.
Instagram rolled out a new way for influencers to identify sponsored posts, which make it easier for brands and influencers to comply with Federal Trade Commission disclosure policies, and it added a new polls feature giving brand and influencer followers a new and exciting way to engage with these accounts. And Snapchat released a long-awaited, influencer-friendly feature that allows users to add external links to their videos. Social media is the go-to place for many shoppers these days. A recent survey found that almost one-half (47 percent) of social purchases are made via Facebook. Going into 2018, we’ll likely see more influencers and brands adopting these platform changes in an effort to engage their followers in new ways, while also streamlining their own efforts so that campaigns can become even more targeted to audiences.
Increased product involvement from influencers
More customers than ever are trusting influencer opinions on products. A recent survey found that 49 percent of consumers rely on recommendations from influencers they see on Twitter. While many consumers are loyal to their favorite brands, loyalty to influencers is a bit different. You expect brands to promote their own products in sponsored posts, but influencers are real people who often choose to work with brands that they believe in and are connected to, so there is less perceived bias. Loyal followers notice this and are more likely to pay attention to an influencer’s recommendation of a certain brand, product or style. As marketers catch onto this trend, many are offering their popular influencers a seat at the product-planning table. Influencers who are particularly engaged with their followers have their finger on the pulse of what the brand’s target audience is currently interested in.
This information can be very valuable when the time comes to design new products and campaigns that will catch customers’ eyes. So far, we have seen this trend emerge mainly for beauty and fashion brands, which are more likely to release special collections and lines tied to seasons or themes. However, as it gains traction, don’t be surprised to see a more diverse group of brands work closely with influencers for development in 2018. Although influencer marketing is no longer a new tactic, it is one that will remain relevant as time goes on with the introduction of new tactics and best practices. In the new year, as consumers and social platforms evolve to capitalize on these changes, brands must also keep a keen eye out for trends and be ready to shift their strategies and make the most of influencer campaigns.
and didn’t work in your marketing last year. In going through that exercise, I encourage you to test some new tactics for the year ahead. Below are six trends to keep an eye on and how to apply them.
'Mobilfication'
We've heard about mobile for the last few years, but for some crazy reason, many businesses are still not taking action. Stand in line anywhere nowadays and watch what people are doing. I can assure you they have their face buried in their mobile device. Mobile will continue to be a top priority for marketers for years to come.
Put a mobile strategy in place to engage with your prospects and customers. This means creating a mobile website but, depending on your business, mobile elements might include the ability to send text messages to your customers. For example, the restaurant industry can get away with sending texts once a week with specials, whereas a doctors office would be hard-pressed to send something so regularly. I'd suggest starting off by sending two messages a month, one fun text and one promotional with a call to action. Once you get started, you'll be able to quickly gauge how many messages your audience will respond to.
Media Properties
What type of business are you in? Regardless of your answer, I would challenge you to start thinking about your business as a media company. Where do you get most of your information about what's going on in the world? Whether you read your news online or still read a paper copy, the news controls the conversation for the day, week or month.The best way to control the conversation in front of your prospects and customers is to get in front of them with quality content. Launch one media platform that's 100% focused on providing helpful, authentic content to your end customers. This could mean a podcast, a well-written and thought-out blog or even a livestream video that you film on a weekly basis. The business that produces the best (and most) content will come out on top.
Chatbots
Chatbots are all the rage as of late and for great reason. If you're not familiar, think of them as a tool on the other side of a computer that can respond to your customers' questions or comments. Chatbots are used for engagement, customer service issues, general questions and even closing business. I've been testing them out the last six months and the results have been off-the-charts. The crazy thing is, if you set up the bot correctly, it's very tough to tell if you're talking to an actual person or a bot.
Launch a website or Facebook chatbot to engage with your prospects. Find something fun or engaging to start the conversation, as the prospect needs to initiate the chat. I'm a huge fan of data-driven marketing and have seen open rates exceed 80% or higher with an engaged audience. So, if you send 1,000 messages via your chatbot tool, chances are high that at least 800 people will see your message. Those rates are far superior to email open rates, making this a unique channel not to ignore.
Reviews
Organic traffic from SEO continues to be one of the best sources of web traffic for many businesses. While there are a lot of elements involved in ranking, the number of reviews you have is a key factor. Google looks at your Google reviews, Facebook reviews, Yelp reviews and more. Why would Google want to prioritize a business in the search rank that has a one-star rating? While your reviews are essential for search engine rankings, they can also make or break a sale for you. According to research, half of adults under the age of 50 regularly check online reviews before purchasing a new item. What will they find? I hope a substantial amount of positive reviews that makes the decision easy. Put together a solid plan for getting reviews for your business. Be careful not to incentivize people (as this is not allowed), but instead have a system for asking for reviews.
Video
I expect to see more Facebook Live videos and a rise in web TV. In many surveys out there (like this one), consumers say they much prefer video over text. Video helps tell more compelling stories, gets your point across faster and can improve sales. Video on a landing page or sales page, for example, can help increase conversions by as much as 80%, according to research. Get started by committing to doing four videos per month. Whether you do a Facebook Live, YouTube video or a video for your website, it doesn’t matter. Get into the habit of producing quality video content for your prospects and customers.
Branding Versus Direct Response
Telling your story versus telling people what to do is critical. To paint a more vivid picture, let me provide an example. Educators Credit Union, a client of ours, hosts dozens of events throughout the year that provides value to their members and portrays their brand to the community. Several times a year, they host a shred day, allowing members to bring their papers to be shredded at no cost. Their team is there to help and makes it a fun, community-based day. There are no fancy calls to action. Instead, they're continuing to keep their name out in the community and telling their story. Stop focusing all of your attention on the call to action and make sure you're delivering value first, telling your story and portraying your business in the best possible light. Above, There have been provided some trends. Pick one and execute. Ready, set, go!
A Few Ways Blockchain Will Disrupt Traditional Business And Impact Marketing In 2018
Recently, cryptocurrencies have dominated the news with Bitcoin,
Litecoin and other altcoins generating mainstream buzz. Companies are utilizing a myriad of marketing efforts, particularly social media, to drive interest within the sector. The interest in cryptocurrencies has mainly been speculative as investors look to ride the wave. On November 27, CNBC reported that there were 13.3 million users for Coinbase, the leading U.S. platform for buying and selling Bitcoin. In contrast, Charles Schwab maintained 10.6 million active brokerage accounts.
With that said, technology is evolving at a rapid pace and 2018 will be the year that blockchain, the backbone behind cryptocurrencies, establishes itself as the fastest-growing digital technology since the evolution of the internet. The blockchain is a distributed incorruptible digital technology infrastructure which maintains a fully encoded database that serves as a ledger where all transactions are recorded and stored. For those not familiar with blockchain, here's a good primer for beginners.
Today, startups are jumping on the blockchain and looking for ways to promote their idea or company above the noise. These companies understand that we are in the midst of a “Gold Rush” and are laser-focused on promoting their solution to drive interest, raise capital and increase market share. Many companies are being built to leverage blockchain to create greater efficiencies and maximize the current frenzy. (Full Disclosure: My company started an accelerator for blockchain businesses, helping them grow from concept to reality to widespread adoption.) With Blockchain technology migrating from early adopter status to mainstream adoption, below are three ways blockchain will disrupt traditional business and impact marketing in 2018.
Capital Security
Access to capital is currently one of the major challenges startups face, as the ability to fund an idea and grow a business is burdensome. Lending options are not the same around the globe, and blockchain levels the playing field in the global economy. Firms and agencies do not always have the ability to raise capital efficiently as costs of loans and transaction fees make the process a non-starter. Blockchain will ultimately serve as an engine for securing capital since cryptocurrencies are decentralized and there are no fees associated with them. Entrepreneurs can benefit from the blockchain by accepting funding from angel investors and venture firms the world over, in quick time.
The quicker companies are to (more easily) secure capital, the quicker they'll be to invest in building their teams and promoting their business. In particular, a larger yield of startups will lead to a higher overall marketing spend, which will impact the addressable market for agencies and firms alike.
Real-Time Automation
Blockchain essentially automates processes, and formal client agreements will benefit from a fully automated approval process. Often, blockchain is referenced as a “smart” ledger/contract. Implementing blockchain as a replacement for the typical multiple executive approval processes would cut down project delays and create a universal agreement across business sectors impacting both clients and agencies.
Similarly, blockchain can automate the sourcing, supply chain and procurement processes by tracking responsibilities throughout their life cycle, which would ensure accurate data and accountable transactions. This would disrupt the way marketers engage with and service their clients. Agencies will be impacted by automation as it reshapes the relationship amongst your business and customers. Automation in smart contracts and/or sourcing provides real-time updates and a live snapshot that provides for seamless reporting from all transactions, tracing the actions and deliverables effectively.
Influx Of Startups
Blockchain has begun to generate excitement, and entrepreneurs will attempt to devise the “next big thing” via the use of the blockchain network. Many will see blockchain as the next dot-com opportunity. As companies form to leverage blockchain, the investment community will follow as they did in the 1990s. The excitement and push to build blockchain businesses will spur the economy and ultimately create a robust market for agencies to service blockchain companies.
Blockchain companies need marketing to position their startups above the noise. Leveraging agency expertise will help these companies grow and position them for success. A forward-facing company with a crisp look and a targeted message will build its brand and put itself in a position for investment. For the marketing industry, blockchain provides the largest addressable market since the 1990s. In the early 90s, the internet was something that many didn’t fully understand or realize the impact it could have on our future. Back then, companies were quick to add the dot-com suffix to their name in an attempt to build off the growing momentum. Similarly, fast-forward to 2018 and companies are adding “blockchain” to their name purely to increase valuations.
According to Bloomberg, Long Island Iced Tea Corporation changed its name to Long Blockchain Corporation after it received an ultimatum from Nasdaq in October. When Nasdaq threatened to delist Long Island Iced Tea unless its market value rose above $35 million for 10 consecutive business days, it added “Blockchain” to its name and achieved the target market value via a surging stock price. Kodak has also stepped into the field, announcing the roll-out of KodakCoin.
As 2018 progresses, it will be interesting to see if the cryptocurrency bubble bursts. If there is a market correction, will it impact the excitement around blockchain? In fact, most speculative investors in cryptocurrencies don’t fully understand the difference between crypto and blockchain, and their investment in crypto is really an investment in the blockchain. In short, as blockchain continues to evolve, we’ll see a changing dynamic within the marketing community. Business transactions will get a makeover and this will create a verified transparent network that will ensure privacy and security. This will be the year that blockchain goes mainstream, and the adoption of its processes will lead to a boom that will disrupt traditional business and impact marketing.
Bitcoin climbed in value from less than $1,000 at the beginning of 2017 to $14,000 by the end of the year. A coin of Ethereum was worth $8 on Jan. 1, 2017, and $843 one year later. Who would not be intrigued with the idea of owning something that appreciated thirteenfold, or even a hundredfold, in one year? Even the least sophisticated investors are wondering if cryptocurrency is a real thing or just a bubble of speculation. The real revolution is not the currency but the system that supports it.
Digitization and commercialization of trust
In the late 1990s, many were sucked into the dotcom bubble as the internet revolution brought unimaginable valuations to businesses with a technology bent. But the companies themselves were not as valuable as the platform they were all being built on: the internet.
Cryptocurrencies like bitcoin and Ethereum are no different; they are the shiny objects capturing everyone's attention. But the real industry changer is blockchain, the technology they are built on. Why? Because just as the internet digitized geography and made the world smaller, blockchain does something unimaginably valuable: it is the digitization of trust. It makes transactions trustworthy and safe. Here are some questions to consider in the emerging world of digital logs:
1. Will digital currencies dominate the future? Digital currencies are absolutely the future of money. However it's unlikely that bitcoin is the ultimate winner. Regardless of the coding oddities that make it an inefficient vehicle (the mining code used makes it a colossal waster of electricity and processing power), the idea is simply too big for one platform to own. According to Erik Townsend of the MacroVoices podcast, the demise of bitcoin will result from the privacy and anonymity it guarantees. Sovereign nations will not allow transactions to occur without ensuring taxes are paid and the flow of funds is monitored.
Whether it's in the name of security or for some other reason, you can bet that as cryptocurrencies evolve, so too will government regulation and involvement. China has already started working on a digital renminbi. If the U.S. intends to keep its status as the world's reserve currency, it will need to digitize. By making all non-agency-sponsored currency illegitimate, the world's governments can rapidly marginalize currencies like bitcoin as the domain of bad actors on the fringes of society.
2. How does blockchain work? The system that all cryptocurrencies are built on is a distributed ledger protocol (DLP). Think of it as the ultimate digital log. Imagine a digital version of the library book log many of us grew up with. It tracks who borrowed the book and for how long, and ensures its eventual return (or the appropriate fine). Now imagine if that book was digital and the log tracked who could borrow it, amend it and share it, and there was a complete digital footprint of every person's interaction with it. Now imagine that log not being monitored by a library, but instead being regulated and protected by the users. Think what it would mean if this technology was used for every product, transaction and payment throughout the world with secured access for approved participants.
3. What are the implications of mass adoption of DLP technology? If the buyer and seller do not know each other, many transactions currently require an intermediary to reduce counterparty risk and ensure payment and the safe delivery of products and services. Ultimately, blockchain will completely change how the world interacts because it allows for the safe transfer of a product from one person to another if a set of programmed conditions is met. In the log, you can set the rules for who has access, for how long, and ensure safe payment. With blockchain, we aren't just logging the transaction, we are also guiding the transaction and all of the streams of payments along the way. Blockchain instills instant confidence in the transaction.
What happens when we really don't need to have a trusted middle man like a bank or an escrow agent to confirm delivery and payment? Or a title company to track the history of property? Over time, transaction costs will decline and many of the world's multifaceted intermediaries will have to evolve to survive.
Hurry up and wait
DLP technology today is like the internet in 1992, with immense potential but a messy learning curve. Investing in dotcom stocks in the late 1990s was a frenzy, and many of the pioneers ultimately failed. The real impact of the internet has taken decades to unfold, but the future of commerce and society has been forever changed. DLP technology has the potential to be just as impactful over time.
Should people buy bitcoin or other digital currencies today?
Just like the dotcom bubble, backing any one "winner" in the crypto craze is like placing a bet on a specific number in a game of roulette. It's so early and the outcomes are so uncertain that nobody knows who the eventual winners will be. You only win if you pick right and are fortunate enough to leave the table at the right time.
Origination: Joe Duran is founder and CEO of United Capital. Follow him @DuranMoney.
Understanding how blockchain works and identifying myths about its powers are the first steps to developing blockchain technologies
Video: Blockchain in 60 seconds
After spending two years researching blockchain and the evolution of advanced ledger technologies, I still find a great spectrum of understanding across my clients and business at large about blockchain. While ledger superpowers like Hyperledger, IBM, Microsoft and R3 are emerging, there remains a long tail of startups trying to innovate on the first generation public blockchains. Most of the best-selling blockchain books confine themselves to Bitcoin, and extrapolate its apparent magic into a dizzying array of imagined use cases. And I'm continuously surprised to find people who are only just hearing about blockchain now.
It can seem that everyone is talking about blockchain and ledger technologies, but the truth is most people are not yet up to speed. No one should be shy to ask what blockchain is really all about.
Many blockchain primers and infographics dive into the cryptography, trying to explain to lay people how "consensus algorithms", "hash functions" and digital signatures all work. In their enthusiasm, they can speed past the fundamental question of what blockchain was really designed to do. I've long been worried about a lack of critical thinking around blockchain and the activity it's inspired. If you want to develop blockchain applications you only need to know what blockchain does, and not how it does it.
So I've written a report that explains how the blockchain works. It examines the founding principles of blockchain, describes its properties, and dispels common myths about its powers. The explanation below is an abridged excerpt from the report.
WHAT IS BLOCKCHAIN?
Blockchain is an algorithm and distributed data structure for managing electronic cash without a central administrator among people who know nothing about one another. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was driven by a radical rejection of at (government-guaranteed) money and bank-controlled payments.
Blockchain is a special instance of Distributed Ledger Technologies (DLTs), almost all of which have emerged in Bitcoin's wake.
HOW DOES BLOCKCHAIN WORK?
Blockchain is a Distributed Ledger Technology (DLT) that was invented to support the Bitcoin cryptocurrency. Bitcoin was motivated by an extreme rejection of government-guaranteed money and bank-controlled payments. The developer of Bitcoin, Satoshi Nakamoto envisioned people spending money without friction, intermediaries, regulation or the need to know or trust other parties.
Technically, the original blockchain is separable from Bitcoin, but this report will show that the blockchain design is so specific to Bitcoin that it's not a good fit for much else.
The central problem in electronic cash is Double Spend. Because pure electronic money is just data, nothing stops a currency holder from trying to spend it twice. Blockchain solves the Double Spend problem without a digital reserve fund or similar form of umpire.
Blockchain monitors and verifies Bitcoin transactions by calling upon a decentralized network of volunteer-run nodes to, in effect, vote on the order in which transactions occur. The network's algorithm ensures that each transaction is unique.
Several thousand nodes make up the Bitcoin network. Once a majority of nodes reaches consensus that all transactions in the recent past are unique (that is, not double spent), they are cryptographically sealed into a block. Each new block is linked to previously sealed blocks to create a chain of accepted history, thereby preserving a verified record of every spend.
The Bitcoin blockchain's functionality and security results from the network of thousands of nodes agreeing on the order of transactions. The diffuse nature of the network ensures transactions and balances are recorded without bias and are resistant to attack by even a relatively large number of bad actors. In fact, the record of transactions and balances remains secure as long as a simple majority (51 percent) of nodes remains independent. Thus, the integrity of the blockchain requires a great many participants.
One of the Bitcoin blockchain's most innovative aspects is how it incentivizes nodes to participate in the intensive consensus-building process by randomly rewarding one node with a fixed bounty (currently 12.5 BTC) every time a new block is settled and committed to the chain. This accumulation of Bitcoin in exchange for participation is called "mining" and is how new currency is added to the total system afloat.
Cryptocurrency Wallet Guide: A Step-By-Step Tutorial
Use this straightforward guide to learn what a cryptocurrency wallet is, how they work and discover which ones are the best on the market.
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.
How do they work?
Millions of people use cryptocurrency wallets, but there is considerable misunderstanding about how they work. Unlike traditional ‘pocket’ wallets, digital wallets don’t store currency. In fact, currencies don’t get stored in any single location or exist anywhere in any physical form. All that exists are records of transactions stored on the blockchain.
Cryptocurrency wallets are software programs that store your public and private keys and interface with various Blockchain so users can monitor their balance, send money and conduct other operations. When a person sends you bitcoins or any other type of digital currency, they are essentially signing off ownership of the coins to your wallet’s address. To be able to spend those coins and unlock the funds, the private key stored in your wallet must match the public address the currency is assigned to. If public and private keys match, the balance in your digital wallet will increase, and the senders will decrease accordingly. There is no actual exchange of real coins. The transaction is signified merely by a transaction record on the blockchain and a change in balance in your cryptocurrency wallet.
What are the different types of Cryptocurrencywallets?
There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into three distinct categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.
Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.
Online: wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft. Blockchain.info
Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile. Mycelium
Hardware: wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers increased security. Hardware wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. What’s more, making a transaction is easy. Users simply plug in their device to any internet-enabled computer or device, enter a pin, send currency and confirm. Hardware wallets make it possible to easily transact while also keeping your money offline and away from danger. Ledger Nano S
Paper: wallets are easy to use and provide a very high level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys which are then printed. Using a paper wallet is relatively straightforward. Transferring Bitcoin or any other currency to your paper wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your paper wallet. Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet. Bitaddress.org
Are Cryptocurrency wallets secure?
Wallets are secure to varying degrees. The level of security depends on the type of wallet you use (desktop, mobile, online, paper, hardware) and the service provider. A web server is an intrinsically riskier environment to keep your currency compared to offline. Online wallets can expose users to possible vulnerabilities in the wallet platform which can be exploited by hackers to steal your funds. Offline wallets, on the other hand, cannot be hacked because they simply aren’t connected to an online network and don’t rely on a third party for security.
Although online wallets have proven the most vulnerable and prone to hacking attacks, diligent security precautions need to be implemented and followed when using any wallet. Remember that no matter which wallet you use, losing your private keys will lead you to lose your money. Similarly, if your wallet gets hacked, or you send money to a scammer, there is no way to reclaim lost currency or reverse the transaction. You must take precautions and be very careful!
Backup your wallet. Store only small amounts of currency for everyday use online, on your computer or mobile, keeping the vast majority of your funds in a high security environment. Cold or offline storage options for backup like Ledger Nano or paper or USB will protect you against computer failures and allow you to recover your wallet should it be lost or stolen. It will not, however, protect you against eager hackers. The reality is, if you choose to use an online wallet there are inherent risks that can’t always be protected against.
Update software. Keep your software up to date so that you have the latest security enhancements available. You should regularly update not only your wallet software but also the software on your computer or mobile.
Add extra security layers. The more layers of security, the better. Setting long and complex passwords and ensuring any withdrawal of funds requires a password is a start. Use wallets that have a good reputation and provide extra security layers like two-factor authentication and additional pin code requirements every time a wallet application gets opened. You may also want to consider a wallet that offers multisig transactions like Armory or Copay. A multisig or multi-signature wallet requires the permission of another user or users before a transaction can be made.
Multi-currency or single use?
Although Bitcoin is by far the most well-known and popular digital currency, hundreds of new cryptocurrencies(referred to as altcoins) have emerged, each with distinctive ecosystems and infrastructure. If you’re interested in using a variety of cryptocurrencies, the good news is, you don’t need set up a separate wallet for each currency. Instead of using a cryptocurrency wallet that supports a single currency, it may be more convenient to set up a multi-currency wallet which enables you to use several currencies from the same wallet.
Are there any transaction fees?
There is no straightforward answer here.
In general, transaction fees are a tiny fraction of traditional bank fees. Sometimes fees need to be paid for certain types of transactions to network miners as a processing fee, while some transactions don’t have any fee at all. It’s also possible to set your own fee. As a guide, the median transaction size of 226 bytes would result in a fee of 18,080 satoshis or $0.12. In some cases, if you choose to set a low fee, your transaction may get low priority, and you might have to wait hours or even days for the transaction to get confirmed. If you need your transaction completed and confirmed promptly, then you might need to increase the amount you’re willing to pay. Whatever wallet you end up using, transaction fees are not something you should worry about. You will either pay minuscule transaction fees, choose your own fees or pay no fees at all. A definite improvement from the past!
Are cryptocurrency wallets anonymous?
Kind of, but not really. Wallets are pseudonymous. While wallets aren’t tied to the actual identity of a user, all transactions are stored publicly and permanently on the blockchain. Your name or personal street address won’t be there, but data like your wallet address could be traced to your identity in a number of ways. While there are efforts underway to make anonymity and privacy easier to achieve, there are obvious downsides to full anonymity. Check out the DarkWallet project that is looking to beef up privacy and anonymity through stealth addresses and coin mixing.
Which Cryptocurrency wallet is the best?
There is an ever-growing list of options. Before picking a wallet, you should, however, consider how you intend to use it.
Do you need a wallet for everyday purchases or just buying and holding digital currency for an investment?
Do you plan to use several currencies or one single currency?
Do you require access to your digital wallet from anywhere or only from home?
Take some time to assess your requirements and then choose the most suitable wallet for you.
Paper Wallet
Bread Wallet
Bread Wallet is a simple mobile Bitcoin digital wallet that makes sending bitcoins as easy as sending an email. The wallet can be downloaded from the App Store or Google Play. Bread Wallet offers a standalone client, so there is no server to use when sending or receiving bitcoins. That means users can access their money and are in full control of their funds at all times. Overall, Bread Wallet’s clean interface, lightweight design and commitment to continually improve security, make the application safe, fast and a pleasure to use for both beginners and experienced users alike.
Pros: Good privacy & security, beginner friendly, simple & clean, open source software, free.
Cons: No web or desktop interface, lacks features, hot wallet.
Mycelium
Advanced users searching for a Bitcoin mobile digital wallet, should look no further than mycelium. The Mycelium mobile wallet allows iPhone and Android users to send and receive bitcoins and keep complete control over bitcoins. No third party can freeze or lose your funds! With enterprise-level security superior to most other apps and features like cold storage and encrypted PDF backups, an integrated QR-code scanner, a local trading marketplace and secure chat amongst others, you can understand why Mycelium has long been regarded as one of the best wallets on the market.
Pros: Good privacy, advanced security, feature-rich, open source software, free
Cons: No web or desktop interface, hot wallet, not for beginners
Exodus
Exodus is a relatively new and unknown digital wallet that is currently only available on the desktop. It enables the storage and trading of Bitcoin, Ether, Litecoins, Dogecoins and Dash through an incredibly easy to use, intuitive and beautiful interface. Exodus also offers a very simple guide to backup your wallet. One of the great things about Exodus is that it has a built-in shapeshift exchange that allows users to trade altcoins for bitcoins and vice versa without leaving the wallet.
Pros: Good privacy & security, beginner friendly, intuitive, easy to use, in-wallet trading, supports multiple currencies, open source software, free.
Cons: Hot wallet, no web interface or mobile app
Copay
Created by Bitpay, Copay is one of the best digital wallets on the market. If you’re looking for convenience, Copay is easily accessed through a user-friendly interface on desktop, mobile or online. One of the best things about Copay is that it’s a multi-signature wallet so friends or business partners can share funds. Overall, Copay has something for everyone. It’s simple enough for entry-level users but has plenty of additional geeky features that will impress more experienced players as well.
Pros: Good privacy & security, multisig transactions, multiple platforms & devices, multiple wallet storage, beginner friendly, open source software, free
Cons: Can be slow & unresponsive, limited user support
Jaxx
Jaxx is a multi-currency Ether, Ether Classic, Dash, DAO, Litecoin, REP, Zcash, Rootstock, Bitcoin wallet and user interface. Jaxx has been designed to deliver a smooth Bitcoin and Ethereum experience. It is available on a variety of platforms and devices (Windows, Linux, Chrome, Firefox, OSX, Android mobile & tablet, iOS mobile & tablet) and connects with websites through Firefox and Chrome extensions. Jaxx allows in wallet conversion between Bitcoin, Ether and DAO tokens via Shapeshift and the import of Ethereum paper wallets. With an array of features and the continual integration of new currencies, Jaxx is an excellent choice for those who require a multi-currency wallet.
Pros: Good privacy & security, Multi-currency, wallet linking across multiple platforms, great user support, feature rich, user-friendly, free.
Cons: Code is not open source, can be slow to load.
Armory
Armory is an open source Bitcoin desktop wallet perfect for experienced users that place emphasis on security. Some of Armory’s features include cold storage, multi-signature transactions, one-time printable backups, multiple wallets interface, GPU-resistant wallet encryption, key importing, key sweeping and more. Although Armory takes a little while to understand and use to it’s full potential, it’s a great option for more tech-savvy bitcoiners looking to keep their funds safe and secure.
Pros: Good privacy, great security features, multi-signature options, solid cold storage options, free.
Cons: Only accessible via the desktop client, not for beginners.
Trezor
Trezor is a hardware Bitcoin wallet that is ideal for storing large amounts of bitcoins. Trezor cannot be infected by malware and never exposes your private keys which make it as safe as holding traditional paper money. Trezor is open source and transparent, with all technical decisions benefiting from wider community consultation. It’s easy to use, has an intuitive interface and is Windows, OS X and Linux friendly. One of the few downsides of the Trezor wallet is that it must be with you to send bitcoins. This, therefore, makes Trezor best for inactive savers, investors or people who want to keep large amounts of Bitcoin highly secure.
Pros: Good security & privacy, cold storage, easy to use a web interface, in-built screen, open source software, beginner friendly.
Cons: Costs $99, must have device to send bitcoins
Ledger Nano
The Ledger Wallet Nano is a new hierarchical deterministic multisig hardware wallet for bitcoin users that aims to eliminate a number of attack vectors through the use of a second security layer. This tech-heavy description does not mean much to the average consumer, though, which is why I am going to explain it in plain language, describing what makes the Ledger Wallet Nano tick. In terms of hardware, the Ledger Wallet Nano is a compact USB device based on a smart card. It is roughly the size of a small flash drive, measuring 39 x 13 x 4mm (1.53 x 0.51 x 0.16in) and weighing in at just 5.9g.
Pros:
Screen/device protected by metal swivel cover
Multi-Currency support
3rd-Party apps can run from device
U2F support
When recovering wallet from seed, the whole process can be done from the device without even connecting it to a computer!
Fairly inexpensive (~$65 USD)
Cons:
Not as advanced wallet software (no transaction labeling)
No ability to create hidden accounts
No password manager
Green Address
Green Address is a user-friendly Bitcoin wallet that’s an excellent choice for beginners. Green Address is accessible via desktop, online or mobile with apps available for Chrome, iOS, and Android. Features include multi-signature addresses & two-factor authentications for enhanced security, paper wallet backup, and instant transaction confirmation. A downside is that Green Address is required to approve all payments, so you do not have full control over your spending.
Cons: Hot wallet, average privacy, the third party must approve payments.
Blockchain (dot) info
Blockchain is one of the most popular Bitcoin wallets. Accessing this wallet can be done from any browser or smartphone. Blockchain.info provides two different additional layers. For the browser version, users can enable two-factor authentication, while mobile users can activate a pin code requirement every time the wallet application is opened. Although your wallet will be stored online and all transactions will need to go through the company’s servers, Blockchain.info does not have access to your private keys. Overall, this is a well-established company that is trusted throughout the Bitcoin community and makes for a solid wallet to keep your currency.
Pros: Good security, easy to use web & mobile interface, well-known & trusted company, beginner friendly, free.
Cons: Hot wallet, weak privacy, third party trust required, has experienced outages.
Bitcoin Alt Coin Exchanges
Bitcoin exchanges are digital marketplaces where traders can buy and sell bitcoins and alt coins using different fiat currencies or altcoins. Exchanges also act as wallets.
Blockchain explained in plain English
Cryptocurrency Wallet Guide: A Step-By-Step Tutorial
