To operate in the cryptocurrency niche, one must-have item is a digital wallet for storing and managing the coins. Though there are many types of cryptocurrency wallets out there, the hardware wallets are considered the most secure while mobile wallets are the fastest growing models. One of the top mobile wallets today is Coinomi.
Though initially launched for Android phones, the Coinomi development team has extended it for iOS mobile platforms. Besides, the list of coins supported by Coinomi has steadily grown to reach more than 150.
Unlike other wallets such as Trezor and Jaxx that have suffered attacks and huge losses in the past, Coinomi has never been hacked. This review takes a comprehensive evaluation of the wallet to answer key questions such as “Is Coinomi the safest mobile wallet out there?” and “How does Coinomi work?”.
What Is Coinomi?
Coinomi is a mobile-based wallet founded in 2014 by George Kimionis. Kimionis is a Special Forces veteran who also founded a cryptocurrency investment platform referred to as Cryptean.
Though Kimionis was less known in the cryptocurrency niche when he created the wallet, Coinomi has made a name due to its high level of security and ease of use. Initially, the Coinomi code was designed as open-source before being changed to close source for greater controllability.
This Coinomi wallet review found that many Coinomi users are enthralled by the ease of exchanging their coins by using its inbuilt exchanges. This, coupled with the near-instant capability to move the user’s coins and the fact that it is a free wallet, has made the user base grow exponentially.
Coinomi: A 4.7 Star Wallet
For many people coming to the cryptocurrency industry, one major worry is their coins’ security. With Coinomi proving to be highly secure and reliable, more users have developed a lot of confidence in it.
The high rating also stems from the unique features that make the wallet very easy to use, even for newbies. The consistency of the development team to provide even more advanced features has made the wallet irresistible even for those hooked to other wallets.
At a time when every cryptocurrency is targeting to optimize use in the conventional and online stores, Coinomi users enjoy every step of the way because they can easily change the coins using integrated exchanges. This implies that even if a store only accepts Ethereum but you have Bitcoin, you can easily convert the coins using the integrated exchanges.
How Does The Coinomi Wallet Operate?
The Coinomi cryptocurrency wallet, like other digital wallets, operates with a set of codes that allow users to call their tokens to live and manage them. As a mobile wallet, you will need to start by setting it up on a smartphone using the following procedure:
- Visit the Coinomi website to download the app and install it. You can also install it directly from the Google Apps Store or Apple’s App Store.
- Open the wallet icon and hit “create a wallet”. Immediately, the wallet will present a recovery passphrase (commonly referred to as seed phrase), which you should copy onto paper and store safely. Note that this passphrase should NEVER be shared with anyone because it can give them access to your wallet.
- The wallet will require you to set another password (PIN) referred to as the private keys. This PIN should be of at least eight characters, combining letters, numbers, symbols, and other special characters to make it difficult for hackers to crack.
NOTE: Private keys are only controlled by the owner. Therefore, you need to be extra careful because losing them could mean a total loss of your stored coins.
- Select the cryptocurrencies that you want to store in the wallet. Today, the wallet allows users to store and trade more than 150 coins. Some of these coins include:
- Canada eCoin
- Ethereum Classic
After setting the tokens of interest, you only need to deposit them into the wallet to start trading. Here is a video demonstrating how to deposit your preferred coins on the wallet:
Coinomi and Integrated Exchanges
The conventional method of exchanging your tokens in the cryptocurrency niche is joining an exchange such as Binance or Bittrex. But the exchanges implement serious KYC (know your customer) strategies that easily water down users’ privacy by requiring users to give information such as proof of identity and passport numbers.
Coinomi addressed the issue of privacy by integrating Changelly and ShapeShift into its system so that you will not need to provide additional personal information apart from what was used to create the wallet. Now, changing or trading your tokens to a specific token on Coinomi is anonymous and straightforward.
If you want to use ShapeShift, there are two methods you can use to trade the tokens. One, you can go for the “Quick” transaction method that allows the user to enter the cryptocurrency amount to trade and the targeted coin. Then, the ShapeShift platform generates the wallet address, user deposit amount, and the number of coins to receive based on the latest conversions.
The second method is the “Precise” transaction that requires the user to define to ShapeShift the amount he/she wants to receive for a specific transaction. The exchange generates all the details, including fees and the amount one will be required to deposit.
- To trade using Changelly, the process is even more straightforward. The user is allowed to select the coin he/she intends to deposit and Changelly simply demonstrates the amount that will be received.
It is important to appreciate that though the Coinomi app is free and does not charge users a transaction fee, they still have to pay a fee for the exchanges. This is because ShapeShift and Changelly are different entities that are only integrated on Coinomi but operate with different policies.
Coinomi Security: Is Coinomi Safe?
While web-based and mobile wallets are considered very insecure, Coinomi is singing a different tune. But the question remains, “Is Coinomi secure?”
Since inception, the Coinomi platform has never been hacked. The wallet was designed at a time when attacks to crypto networks, especially on the exchanges, had become rampant.
Therefore, the development team are committed to keeping the platform and users’ assets as secure as possible. Here are the features and strategies used to keep Coinomi secure:
- The wallet has a key different from that of the user’s phone. Even if an unauthorized person gains access to the phone, he will not be able to access the wallet without its PIN.
- Coinomi crypto wallet makes it very easy to recover lost private keys and tokens through use of the seed phrase.
- The Coinomi digital wallet is Hierarchical Deterministic. This implies it generates multiple public addresses to make it more difficult for wallet users to get discovered.
- IP Masking is used to help provide users with enhanced anonymity. The masking makes it very difficult to track where transactions are being made. It is the main reason why more people, especially those in countries hostile to cryptocurrency trading, prefer Coinomi.
While the development team at Coinomi has been very aggressive in keeping the network extra secure through regular updates, users should know that the platform is still vulnerable. When it comes to cryptocurrencies and supported platforms, nothing is completely secure.
To enjoy optimal security, Coinomi insists that users should always keep their private keys away from third parties and ensure they are on the latest version.
This digital wallet has been demonstrated in this Coinomi review to be a highly reliable and safe wallet. The commitment of the development team to progressively improve the wallet could ultimately make it the best wallet out there. Here is a summary of the platform pros and cons:
- A highly intuitive user interface.
- Supports many cryptocurrencies.
- Has integrated Changelly and Shapeshift exchanges to make trading easy and direct.
- It allows users to store and trade their tokens anonymously.
- The exchange works on a desktop wallet to make the wallet available on more platforms.
- Transactions are near instant.
- Multi-language support
- People with operating systems outside Android and iOS cannot use the wallet.
- The wallet is close source.
- The wallet does not support fiat currencies.
As more people continue searching for wallets that are more trustworthy because of the growing risks, Coinomi has demonstrated it could be the answer to their woes. Its integration with top cryptocurrency exchanges now makes exchanging tokens easy, faster, and highly reliable.
This Coinomi review strongly recommends this wallet to users who want to join cryptocurrency trading and operate without worrying about losing their assets. Though it has some shortcomings such as not supporting fiat currencies and being close source, it has demonstrated to be the ultimate link that cryptocurrency traders have been waiting for to grow to the next level.
Despite the thrill from the use of the wallet, this review strongly urges the users joining the platform to also store some of their tokens in cold storage wallets such as Ledger Nano S to spread the risk. Even with its top-notch security, do not sit pretty because blockchain-based technologies are dynamic and new hacks could still be possible in future.