We’re in a world where notes and coins are getting replaced with digital entities. It only makes sense that leather and everything else purses are made out of, give way for digital cryptocurrency wallets like CoinPayments.
Introduction to CoinPayments
CoinPayments is a wallet for cryptocurrency supporting nearly 2000 different altcoins founded in 2013. For 0.5% of the amount sent, users can receive and store any cryptocurrency coin supported by CoinPayments. This fee is regarded as high when compared to other wallets. It’s available for Android and iOS users to access their coins from any device with these operating systems. Whether you’re sending or receiving, all you need for quick transactions is an appropriate device and good internet service.
In 2017, there was an incident that has left a dent in CoinPayments’ reputation. Hackers were able to find security gaps, and they stole from CoinPayments’ users. Although they managed to identify the culprit, there's been a general distrust of the wallet’s security since then. As a centralized wallet that has control over the private keys of user wallets, CoinPayments gives users just another reason to be insecure.
CoinPayments works like most other crypto wallets, it possesses features you won't find in the others. The interface is basic, and some users see that as a good thing due to simplicity, others believe it doesn't attract attention. Here are the notable points for easy use of CoinPayments.
- $PayByName feature.The most recent addition to CoinPayments’ features. The $PayByName feature allows users to have a unique tag for the receipt of payments, rather than the typical crypto addresses or email. The feature helps avoid the stress of keeping up with crypto addresses, which are known to be quite long.
- Creating an account is mandatory. To begin using CoinPayments, you should first create an account. Once logged in, you can choose what coins to accept. This is done by going to the ’My Account’ option on the menu. Once this opens, click on ’What Coins To Accept.’ Here, you have to put in your wallet payment addresses since you’re logging in for the first time. Your wallet address could be from independent software or exchanges. Poloniex or BTC-e are recommended.
- Choose coins. Once the payment address is in, you can proceed to check the boxes of the coins you wish to accept. If you’re having trouble deciding what coins to get, just stick with the ones that generally have stable exchange rates. At the top of the list of these coins is Bitcoin, then Litecoin right after. Peercoin is another coin that’s doing well. It’s even ranked right after Bitcoin and Litecoin for most people.
- Save your coins.If you choose to enable other coins, CoinPayments has a conversion feature that can help with saving all your cryptocurrency as the ones with generally stable exchange rates, that is, Bitcoin and Litecoin. Conversion fees are no exception to CoinPayments’ low fees going for just the coin’s TX fees + conversion partner’s fees where applicable. By saving your coins like Bitcoin or Litecoin, you can easily convert cryptocurrency to fiat currencies because of their exchange rates. For fiat conversions, you can make use of any crypto exchanges of your choice.
Pros & cons of CoinPayments
- Supports a variety of coins
- Unique tag to receive payments
- Allows conversion of coins
- Fast transactions
- Great referral programs
- 24-hour customer service
- Includes multiple languages
- Easy to use plug-in and interface
- Questionable security
- Expensive commissions and hidden fees
- Some accepted coins are mere company tokens or a complete scam
- App store rating is low
- The minimum withdrawal limit is high
- No information on user protection
- Not decentralized
Many users have issues with the fees charged by CoinPayments. Compared to most other crypto wallets, CoinPayments’ fees are relatively high. Here are the fees for different transactions:
- Incoming payments to Balance(CoinPayments Wallet) – 0.5%
- Incoming payments to Nightly(external addresses) – 0.5% + coin TX fee
- Commercial deposits – 0.5%
- Transfers (off-block chain sends to $PayByName tags or email) – 0.5%
- Personal Deposits (Addresses made or retrieved with CoinPayments) – Free for the first 15,000 USD per month, then 0.5% for greater amounts.
- Conversions – coin TX fee + Conversion partner’s fees (where applicable)
- Withdrawals – coin TX fee
During certain situations, there might be an increase or decrease in these fees. Such cases may arise due to movement to the blockchain, CoinPayments subsidies, payout modes, etc. CoinPayments give these instances and implications.
Many people find it hard to trust CoinPayments because of the one-time security breach and the lack of information on insurance and other forms of user protection. But some users have found that CoinPayments has been working on the security detail. However, the general recommendation is for you to try any of the more popular and well-reviewed wallets. If you still choose to stick with CoinPayments, tread with caution while using the wallet. It’s best to use CoinPayments as a merchant dealing with large amounts, rather than as an individual with low income.