Best Crypto Wallets for Business

Corporate customers seek solutions that ensure security and efficiency when processing payments in crypto. Since clients perform a steady stream of buy/sell operations acting as online stores and service providers, they need to have an uninterrupted connection to a hot wallet.

Exchanges might not allow for sufficient flexibility and integration of business-specific features. In this setting, hot business wallets come to the fore, among which are the wallets from CryptoProcessing.com. Such services usually include merchant accounts, bridges to the OTC desk and easy processing for TOP-50 coins. In this mini-guide, we discuss all things business wallets, including their types, benefits and important factors to consider when picking one.

Can a Company Have a Crypto Wallet?

Companies can set up a cold or hot crypto wallet for business and start receiving payments from users. Connecting their business to an online payment gateway and integrating the hot wallet and merchant account is the best way to go.

Businesses see more and more customers requesting payments in cryptocurrencies. Communities are starting to wake up to efficiency, lower fees and almost immediate execution of on-chain transactions. In these circumstances, companies find themselves exposed to the high-level question on how to process payments in crypto.

There are two main ways to do that:

• Method 1: Use a solution from an external provider. Almost all businesses – even the big ones – are picking this option. Wallets and merchant accounts generally fulfill the full scope of the customer’s needs. The integration might take just a few days and will result in the customer being able to effectively receive, send, account for and monitor transactions in crypto.

• Method 2: Develop your own solution on-chain. Only a selected few go this route, and such entities usually have a lengthy history in the cryptocurrencies niche, which enables them to rely on their accumulated skills and insights. Such an approach generally allows providers to claim expertise and offer highly customized services for the internal crypto communities. However, none of these factors might sound appealing or relevant to end-users and B2B companies, which currently pushes most businesses toward Type 1.

Therefore, picking an external provider is the most preferred way to go. Next, we’ll talk about such cold/hot crypto wallets for business and how to pick the one that fits your enterprise most.

What Types of Business Wallets Exist?

Look into the two main classifications for wallets – by custody and hot/old types. Self-custody and hot wallets are the best fit for corporate users.

Factor 1: Custody

The main differentiation between wallets is who controls the private keys. It’s vital as private keys are akin to the PIN to your card. Though you might always reach out to your bank and ask them to assist in creating a new PIN if you forget the old one, it’s not possible with the on-chain digital assets like cryptocurrencies. The private keys are exactly what give users the complete freedom and independence of the banks and any other institutions that might use these very access credentials to freeze your company’s assets and/or block specific transactions.

In this regard, all crypto business wallets can be divided into the two types:

• Custodial wallets. Software where users retain their private keys. Even though the wallet may be delivered by a provider, such as CryptoProcessing.com, these Bitcoin/altcoin wallets aren’t completely under the user’s control. The provider has no access to their assets and can’t change the private keys in any way.

• Non-custodial wallets. Such hot wallets are usually created by exchanges and similar entities. Most users don’t realize that their private keys are stored within the software architecture, which might allow hackers to find the backdoors and siphon off their funds. Customers should clearly investigate any such a crypto wallet for business before starting to use the software in their operations as the stakes are usually much higher when compared to ordinary users.

Custody is at the heart of the decentralization movement that undergirds the cryptocurrencies, NFTs, DEFI and other innovative solutions on the market. Currently, a number of hot wallets allow for both business-grade service suites and full custody retained by customers.

Factor 2: Hot/Cold Wallets

Another major differentiator between crypto wallets for corporate users is whether they are connected to the Internet or not.

• Hot wallets. Such software is always connected to the Internet, which allows users to receive and send digital assets. Hot wallets are the best fit for companies engaged in constant receipt of funds from customers and disbursal to partners and affiliates.

• Cold wallets. Cold wallets are similar to bank vaults as they aren’t connected to the web, and hackers aren’t capable of potentially accessing the stored funds. Businesses can’t use the cold wallets to easily transfer value to their counterparties, but they serve them well as a long-term storage for investment/reserve assets.

Generally, it’s advised to stick with custodial wallets and divide the corporate funds across several wallets with the operational capital being stored in a hot crypto wallet for business and the long-term reserves being allocated to the cold storage.

How Do I Choose the Right Crypto Wallet for My Business?

Now that we’ve talked about the two main classifications of crypto wallets, we can delve into the best way to decide on the crypto wallet that will effectively serve your business’ needs.

Businesses usually seek to find novel ways to add value and look for flexibility in processing systems they dock with. These questions about corporate-grade crypto wallets will inform your decision-making process:

• How flexible the provider is. For instance, CryptoProcessing.com offers various business models for OTC trading and payment processing operations, which allows the service to customize the solutions in line with the unique ways that your business is run.

• Availability of additional solutions for business. Hot wallets for business, OTC desks and reporting features are must-haves as businesses require highly granular data in their transactions and easier ways to deal with large-scale incoming/outgoing payments.

• Custody type. As we’ve talked above, self-custody wallets are usually the best option, but the trade-off is the inability to restore funds in case the private keys go missing.

• Hot/cold wallets. Corporate hot wallets are the only option for active transactioning in the business operations.

• Fees structure. Though most wallets and merchant accounts for crypto processing are free to download and implement, the transactions may incur varying fees. Thus, thorough review of the conditions for fees and commissions are a necessity.

• Reputation. Take a deep dive into the reputation that the provider has, learn about the major collaborations and reviews online.

Choosing the business-grade hot wallet can take time, but you’ll be able to easily winnow down the selection using the questions and differentiators from above.

How Can I Keep Track of My Crypto Wallets and Transactions?

Keeping track of the transactions, addresses and wallets is made easy when your company works with a professional business-grade payment processor.

Such services usually deploy the following features:

• Detailed reporting with break-downs by coin, customer and other markers

• Assistance in handling taxes and meeting the regulator’s requirements

• Integration of a business crypto wallet, OTC desk and payment gateway

Equipped with such functionalities, corporate teams find it easier to manage versatile transactions and deliver synergies between operations within treasury, sales and accounting scopes.

Bottom Line

Hot crypto wallets for businesses enable them to easily receive, send and report for transactions. In addition, businesses integrate the wallets with payment gateways and other processing features so that their internal teams can enjoy the full suite of services provided by the same company. When choosing a wallet, hot and self-custody versions are the best fit for business use. Consider how long the service has been around, and what reviews they have garnered.