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Are you a Filipino digital asset investor looking for guidance on how to get started?
We’ve got you covered!
In recent years, the Philippines has emerged as a noteworthy player in cryptocurrency. With a rapidly growing user base and a surge in cryptocurrency transactions, the archipelagic nation has captured the attention of both crypto enthusiasts and financial institutions. The latest data from the Banko Sentral ng Pilipinas (BSP), the country’s central bank, reveals remarkable growth in the volume of cryptocurrency transactions, with a staggering 362% increase year on year in the first half of 2021 – and plenty more potential growth where that came from.
With the increasing adoption of cryptocurrencies like Bitcoin and Ethereum, having a secure and reliable crypto wallet is essential for anyone looking to enter the world of digital assets. In this article, we will help you grasp the concept and take you through getting a crypto wallet in the Philippines, ensuring you can securely and conveniently manage your digital investments.
A cryptocurrency wallet is a digital application designed to serve as a secure repository for digital assets, much like a traditional wallet where you store cash and cards. However, instead of housing physical items, a crypto wallet securely holds the cryptographic keys essential for authorizing cryptocurrency transactions and offers a user-friendly interface to manage your crypto holdings.
These modern cryptocurrency wallets have significantly streamlined the process of engaging with the blockchain. In the early days of cryptocurrency, they were sending digital assets, often involving manually entering lengthy cryptographic keys. Today, these wallets automate many of these processes, making cryptocurrency transactions more accessible to a broader audience.
In contrast to a physical wallet used for holding fiat currency or bank and credit cards, a crypto wallet doesn’t store cryptocurrencies themselves. Instead, it safeguards the credentials required as private keys to access a specific cryptocurrency’s blockchain.
In the traditional banking system, users are assigned bank accounts associated with account numbers. In the cryptocurrency realm, the public key plays a comparable role to a bank account number. However, possessing solely a bank account number or a public key doesn’t grant the capability to execute a full range of transactions with an account.
The blockchain operates on a public key infrastructure model for cryptographic security. The public key and private key should only be known to users who possess a particular cryptocurrency or asset. Both keys are indispensable for accessing and transferring cryptocurrency. Just as a personal identification number is necessary to access a bank account with a bank card, a private key is required to access assets on a blockchain.
Crypto wallets store the user’s private key and pertinent information, whereas public keys are recorded on the blockchain. Through the interplay of public and private keys, a crypto wallet facilitates secure operations to verify a balance and execute cryptocurrency transactions.
Like any currency, cryptocurrencies can be accumulated and utilized for various purposes and transactions. Crypto wallets are indispensable in making crypto assets and cryptocurrencies functionally valuable for individuals and organizations, similar to how a bank account is fundamental for managing fiat currency.
Crypto wallets serve several essential functions that facilitate the practical utility of cryptocurrencies, including:
Management of Cryptocurrency: Crypto wallets empower users to monitor their cryptocurrency asset balances.
Transactions: The ability to send and receive cryptocurrency payments is a central feature of crypto wallets.
Access to Decentralized Apps (dApps): To engage with Web 3.0 dApps, a crypto wallet is a prerequisite.
User Identities: All cryptocurrencies are stored on a blockchain, and a crypto wallet allows transactions to be associated with a username corresponding to a public key address on the blockchain.
Key Management: Functionally, cryptocurrency exists on the blockchain as a public key address. Crypto wallets assist users in managing the private encryption keys necessary for accessing a specific address and facilitating transactions.
Crypto wallet users not only have the freedom to choose their preferred wallet service or provider, but also the deployment method. Essentially, there are two fundamental types of crypto wallets: hot wallets and cold wallets. Hot wallets remain consistently connected to the Internet, whereas cold wallets, also known as cold storage, are typically offline and only link to the Internet when necessary.
Hardware Wallets: A hardware-based crypto wallet stores the user’s cryptocurrency’s private key on a physical medium, commonly a USB drive. This physical device offers an added layer of security since it remains isolated when the user disconnects the key.
Online (Web) Wallets: Online wallets are the most prevalent and widely used crypto wallets. In this setup, an online service, such as a crypto exchange, manages the user’s public and private keys. Accessing the wallet is as simple as logging into the online service.
Desktop Wallets: Desktop wallets store cryptographic keys within an application installed on a user’s desktop. Users have direct control over the keys on their computer.
Mobile Wallets: Mobile wallets, in the form of mobile apps, allow users to store their public and private keys for managing and utilizing cryptocurrency directly on their mobile devices. An example mobile wallet for the beginners is Saakuru App Wallet.
Now that you’ve gained an understanding of what a crypto wallet is, how it operates, and have become familiar with the different types available, this guide will walk you through the process of getting a crypto wallet in the Philippines.
Select the Appropriate Wallet Type:
As a beginner, the most user-friendly choice for your wallet is a mobile wallet. In this guide, we will walk you through obtaining the Saakuru App mobile wallet as an example.
Get Your Wallet:
You can easily download the Saakuru App wallet from both the Google Play Store and the Apple App Store.
Configure Your Wallet:
Launch the app and create a new wallet by following the on-screen instructions. This typically involves setting up a robust password or PIN code. Safeguard this information, as it serves as the gateway to your wallet.
While configuring your wallet, the app will generate a recovery seed consisting of a series of words. It’s imperative to carefully transcribe these words onto a physical sheet of paper and store them in a secure location. This step is crucial for regaining access to your wallet in case of a lost or inaccessible device.
Verify and Make your First Deposit:
Some wallet providers may request identity verification to bolster security. If prompted, be sure to follow the verification process attentively.
Once your wallet is set up, you can deposit funds into it by acquiring cryptocurrencies supported by your chosen wallet. Various methods are available, including bank transfers, credit/debit card transactions, or cash deposits at a cryptocurrency ATM. For Saakuru App users, the Alchemy Pay option is available.
Explore and Utilize:
With your wallet now funded, you can actively engage in cryptocurrency transactions. To send or receive cryptocurrencies, you’ll need the recipient’s wallet address and a unique alphanumeric code. It’s essential to exercise caution by double-checking the recipient’s address to ensure the safe delivery of your cryptocurrency to its intended destination.
Safeguard Your Private Key Offline:
To enhance the security of your wallet, consider keeping your private key offline, away from the digital realm. Simply writing down your private key on a physical piece of paper is a secure approach as it eliminates the risk associated with electronic devices. Store this paper in a dry, cool place, shielded from heat and direct sunlight to prevent deterioration.
Prioritize Secure Internet Connections:
Most public networks are susceptible to security vulnerabilities. If you have a Bitcoin wallet on your laptop, consider using your phone’s hotspot instead of connecting to public networks when accessing your wallet. It’s advisable to primarily use well-known or home networks, where the risk of exposure to security flaws is significantly reduced.
Employ Robust and Up-to-Date Antivirus Software
Malicious software affects all operating systems, not just Windows. Ensure your computer is equipped with reliable and up-to-date antivirus software to protect against potential threats. Since many cyberattacks leverage viruses and malware to compromise your device, conduct regular scans before accessing your wallet. Keep your software updated to guard against the latest malware threats.
Exercise Caution with Unknown or Suspicious Links:
Exercise vigilance during online activities, particularly when encountering unfamiliar or suspicious websites. Internet scammers often clone entire websites and use URLs that resemble authentic ones. When using an online wallet or any service requiring your private key, always verify the authenticity of the website address.
Also, look for Bitcoin-related scam emails that may prompt you to visit specific websites or enter your details.
Choose a Strong Password for Your Online Wallet:
When using an online wallet, exercise caution when creating your password. Avoid using easily guessable information like phone numbers, birth dates, names, or favorite movies. Opt for an alphanumeric combination that holds personal meaning. Approximately 52% of people reuse passwords across various services, so ensure your wallet password is unique.
Safeguard Your Private Key
Your private key should remain confidential; never share it with anyone or permit others to conduct transactions on your behalf. Disregard any proposals or requests that involve disclosing your private key to third parties.
Maintain Separate Wallets for Daily Transactions
For small, day-to-day transactions, it’s wise to create a separate wallet that can be periodically replenished. You can create multiple Bitcoin addresses or wallets, as there’s no limit. This practice helps organize your transactions and bolsters the overall security of your portfolio
Enable Two-Factor Authentication for Online Wallets
Most online wallets offer two-factor authentication, a simple yet effective security measure. Always utilize this additional layer of protection for your online wallets.
Verify Bitcoin Addresses
During transactions, be meticulous in verifying the recipient’s Bitcoin address. Malware programs can manipulate copied and pasted addresses, potentially redirecting your funds to unintended destinations. Pay close attention to the recipient’s address to avoid errors.
Backup Your Digital Wallet
Creating a backup of your digital wallet is essential in case you lose your device or it malfunctions. Store the backup in a different, secure location. In the event of theft or device loss, you can restore wallet access with the backup file. As a precautionary step, you can transfer your funds to another wallet.
As the Philippines continues to experience remarkable growth in cryptocurrency transactions, the importance of having a secure and reliable crypto wallet cannot be overstated. Crypto wallets play a pivotal role in facilitating the practical use of digital assets, enabling users to manage their cryptocurrency balances, perform transactions, access decentralized applications (dApps), and maintain user identities securely.
No, there are no legal restrictions on owning a crypto wallet in the Philippines. However, the government has issued regulations for cryptocurrency exchanges and transactions, so stay informed about the latest laws and regulations.
Yes, you can use a foreign-based crypto wallet provider in the Philippines. Many popular providers are accessible to users worldwide, allowing you to choose the one that best suits your needs and preferences.
To keep your crypto wallet safe, use strong passwords, enable two-factor authentication, and keep your recovery seed phrase in a secure location. Avoid sharing sensitive information and verify the authenticity of websites and apps related to your wallet.
If you forget your wallet password or lose access to your wallet, you can typically recover it using the recovery seed phrase you generated during setup. Follow the instructions provided by your wallet provider to regain access to your wallet.
Yes, you can use a crypto wallet to purchase from businesses and individuals in the Philippines that accept cryptocurrencies as payment. However, it’s essential to check whether the specific merchant or service provider accepts cryptocurrency as a payment method.
Yes, you can transfer cryptocurrencies between wallets in different countries. Cryptocurrency transactions are not bound by geographical borders, making it easy to send and receive digital assets internationally. However, be mindful of transaction fees and exchange rates when transferring between wallets in different countries.
This article is intended to provide generalized information designed to educate a broad segment of the public; it does not give personalized investment, legal, or other business and professional advice. Before taking any action, you should always consult with your own financial, legal, tax, investment, or other professional for advice on matters that affect you and/or your business.
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