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How do cryptocurrency wallets work?

Mycelium wallet review

Read this balanced Mycelium wallet review to explore its features and fees.

This Mycelium wallet review describes a mobile cryptocurrency wallet that lets users store, send and trade with Bitcoin. In this guide we provide an introduction to the wallet alongside its features and fees.

A cryptocurrency wallet is no different to a hardware, software, electronic or mobile application that can store funds. It is not a physical wallet, nor are the coins physical currency. Each wallet has a private key that is used as a password. You should never share your private key with anyone – there is a famous saying in the crypto space: ‘not your keys, not your coins’.

Anyone with the private key can access the Mycelium wallet. The Mycelium wallet was designed to be both functional and mobile – which suits users who want to have a crypto wallet on their phone. The Mycelium wallet, although not available on desktop, is compatible with Trezor and Ledger – meaning it can be used for offline (cold) storage too.

Mycelium wallet key features

Accounts

The Mycelium wallet offers users five different account types.

  • Hierarchical Deterministic (HD) – HD wallets use a ‘master seed’ to derive future Bitcoin addresses which only need to be backed up once.
  • Single address account – This type of account allows users to store large amounts securely by deleting the private key from the device. Users can import the private key when they need it.
  • Hardware – This type of Mycelium account grants users the ability to hold their accounts offline.
  • Bit ID – This account allows for secure authentication through its open protocol.
  • Watch only‘ – A watch only account allows for an address to be stored in the wallet without the relevant private key. In doing so users can watch for outputs – but not spend them.

Integrations

The Mycelium wallet also offers four different integrations:

  • Cashila – This integration enables users to pay their bills in the Single Euro Payments Area (SEPA) zone (EU).
  • Glidera – The Glidera integration facilitates the purchase and sale of Bitcoins using a bank account registered in the US or Canada.
  • Coinapult – The Coinapult feature can be used to hedge against the US dollar (USD) alongside other fiat currencies. (Fiat refers to a national currency).
  • Trezor/Ledger – The Trezor and Ledger integration enables users to use hardware security tools.

Marketplace

There is even a marketplace which allows users to engage with one another:

  • Billboard – The Mycelium Local Trader is a decentralised in-person exchange that is built into the wallet. Local Trader assists users in arranging buying/selling, managing transactions and calculating reputation ratings based on trades. The coins are stored in the wallet – meaning Local Trader does not hold them.
  • Privacy – Mycelium Local Trader uses your Bitcoin private key for registration and authentication – but it does not retain the key. Only the Bitcoin address, your nickname and trade history is kept by the Mycelium servers.
  • Secure chat – Any and all chat conversations are end-to-end encrypted using Bitcoin keys. The context is only accessible to the participating parties. The Mycelium servers only receive encrypted text with timestamps.
  • Trader ratings – Each buyer’s and seller’s rating is changed automatically following any successful or aborted trade to help users know what sort of trader they are dealing with.

Are there any fees?

The wallet itself is free to use. However, there will be a fee attached to a transaction.

Ultimately this fee is decided based on the transaction size. The fee could be as little as $0.25 or as high as $5+.

Which cryptocurrencies are supported?

The company was created back in 2008 – the same year the Bitcoin whitepaper surfaced. The team behind the company were tech-savvy and comprised largely of hardware engineers.

When Bitcoin came out a year later, the company’s focus shifted.

Can you buy Bitcoin with the wallet?

Users can purchase Bitcoin using fiat through the wallet. This is achieved through the integration of Cashila and Glidera. The Mycelium wallet can also accept Bitcoin stored on other wallets – creating more options for users to consolidate their accounts.

It always pays to do research

Hopefully this introduction to the Mycelium wallet and its key features has helped you understand the product. However we do not recommend any cryptocurrency, wallet or exchange in particular.

As such it would be wise to conduct your own research before making any purchases or commitments to anything crypto related.

Interested in hearing more about cryptocurrency wallets? Discover more about the pros and cons of the best crypto wallets by downloading our definitive guide. 

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