Xapo is an online wallet with which you can store a number of cryptocurrencies and also actively engage in trading.
As an online wallet, you shouldn’t use Xapo for long term storage of cryptocurrencies or for holding a large number of cryptocurrencies. That’s because online wallets are always connected to the internet and as such they’re more susceptible to being hacked than hardware wallets. As such, if you want to simply use the online wallet for transaction purposes, that’s great. Otherwise, I would encourage you to instead try out hardware wallets like Ledger Nano S and TREZOR.
Having said that, Xapo is a perfectly good option for an online wallet. It was launched in March 2014 in Hong Kong, founded by Wences Casares. It’s designed in a way so as to offer ultimate convenience when it comes to bitcoin storage.
With Xapo you can start BUYING Bitcoins immediately, without any hassles.
PART 1: Is Xapo Safe?
If you’re worried about legitimacy, rest assured that Xapo is completely trustworthy. They’ve recently raised $40 million in funding and they’ve got some highly reputable investors, which helps showcase that they’re a legit company.
Furthermore, all the personalities behind Xapo are completely transparent about their identities and involvement. The CEO is Wences Casares and he’s spent an entire career building businesses, and the current President is Ted Rogers who has spent a lifetime in various financial firms. It’s highly unlikely that such public figures would put their reputations on the line by working on a scam site, or that they’d make themselves so publicly accountable.
PART 2: Key Features
Xapo has several key features that distinguish it from its competitors.
1. Online Wallet and Mobile App
Xapo comes with an extremely user-friendly web wallet where you can store your altcoins. It’s secured with the help of two-factor authentication so that no one can access it without your approval. Furthermore, the mobile app is equally intuitive and you can set up your Xapo account very easily.
2. Xapo Vault
Remember how we mentioned earlier that online wallets are unsafe because they’re always online and thus at risk of being hacked? Well, Xapo has a solution to that! The Xapo vault is a kind of savings account wherein you can save large amounts of funds that you don’t intend to use.
After going through several rounds of security and verification, you can deposit your funds to the offline vault where they’ll be kept completely safe. This vault is protected with several layers of security such as a two-factor authentication and private key segmentation.
When you transfer funds to the vault, the coins are moved to an offline computer, encrypted, broken down, and transferred to external drives and paper. Furthermore, backups of these are kept in physical vaults.
This ensures complete safety. As such, Xapo has a cold storage option even though it’s an online wallet.
3. Debit Card
If you want to easily spend with Bitcoins, you can do so with a Xapo Debit Card. It’s exactly like a regular debit card, however, it’s directly linked to your Xapo web wallet. In addition to making payments directly with bitcoin, you can also withdraw money from the ATM machines. You’ll be notified of every purchase and you can use it anywhere they accept VISA online with USD, GBP, or EUR currencies.
PART 3: How to use it?
Using Xapo is quite easy. To start with, you’ll have to fill in a signup form by entering your email address, a password, and a 4-digit PIN.
Next, you’ll have to verify your mobile number and activate 2-factor authentication for security.
Once you’re done creating your account, you’ll have to verify your identity by submitting a driver’s license and a proof of residence. Once the approval is done, you’ll be able to access Xapo and buy their cryptocurrencies using your regular fiat currency.
PART 4: Comparison and Alternatives
Now that you now all the essentials about Xapo, you’re empowered to decide whether you want to use it and whether it serves your needs. However, as with most things, you shouldn’t jump into anything without checking out the competition. In the table below I’ve offered a cursory comparison of the best bitcoin wallets in the market.
This includes both hardware and online wallets. Even though Xapo has an offline storage option, some people still prefer complete hardware wallets for storage. If that’s what you’re looking for, I’d suggest either the Ledger Nano S or TREZOR.
|Wallet||Review||Type||Security||Ease of Use||Check Website|
|Ledger Nano S||Ledger Nano S Review||Hardware Wallet||Great||Difficult||Check|
|Trezor||Trezor Review||Hardware Wallet||Great||Average||Check|
|KeepKey||KeepKey Review||Hardware Wallet||Okay||Easy||Check|
|blockchain.info||Blockchain.info Review||Online Wallet||Okay||Okay||Check|
|Coinomi||Coinomi Review||Online Wallet||Good||Easy||Check|
|Xapo||Xapo Review||Online Wallet||Good||Average||Check|
|Exodus||Exodus Review||Online Wallet||Okay||Easy||Check|
|Jaxx||Jaxx Review||Online Wallet||Good||Average||Check|
Xapo is a high-functioning and reliable online wallet. However, because of the presence of the Xapo Vault it can also serve as an offline storage space. This makes it the best of both worlds.
If you do decide to use Xapo, do comment down below and let us know what your experience with it is like.
Xapo offer the best of both worlds. It’s a flexible online wallet with an offline vault available as well.
- An offline vault is available.
- You get a Xapo debit card as well.
- Can use it for regular transactions as well.
- Efficient mobile app.
- High level of verification is necessary to use it.