Carbon Wallet Review 2021: Fees, Pros, Cons and Features

Carbon wallet is a highly innovative project, having been the first to introduce a number of security features that are now almost industry standard. It is built with the user in mind and offers a worthwhile range of features.

However, after investigating all of its features, we have found that it is unregulated and not the best crypto wallet for you. Thus, we would not recommend it. 

The details on why it is not safe and how you can find a safe crypto wallet for your funds are explained in greater detail below.

What is Carbon Wallet?

What is Carbon wallet? Carbon wallet is a hybrid of a multi-currency web wallet and a mobile phone app. The essence of this combination is to enhance the security of the wallet. It has been in existence since 2013 and is a project of the same developers who created the NEO blockchain.

Carbon was one of the earliest wallets to incorporate hierarchical deterministic key algorithms, multi-signature and two-factor authentication. We will discuss these features in greater detail under the safety features section.

The wallet supports English and Chinese and users can access a Bitcoin debit card that supports EUR, USD and GBP.

Carbon Wallet Compatibility

Carbon wallet is compatible with:

• Android
• iOS
• Browsers

What wallet type is Carbon?

• Hierarchical deterministic
• Multi-signature
• Mobile wallet
• Web wallet
• Multi-currency

What cryptocurrencies does the Carbon wallet support?

• Bitcoin (BTC)
• ZClassic (ZCL)
• Bitcoin Cash (BCH)
• Zcash (ZEC)
• Litecoin (LTC)
• Dash (DASH)
• Cryptonetix (CIX)
• Bitcoin Private (BTCP)
• Ethereum (ETH)
• ERC20 tokens

What fees does Carbon wallet have?

There are no Carbon wallet fees for using the platform. But you will need to pay network fees for miners on the blockchain where your transaction is processed.

Additionally, there are some fees associated with the debit card:

• Delivery without tracking $17
• Delivery with tracking $50
• Virtual debit card $3
• Making purchases Free
• ATM transactions (domestic) $2.5
• ATM transactions (international) $3.5

How to open your Carbon Wallet account

Here is how to open Carbon wallet:

Step 1: Go to carbonwallet.com and click “Create Your Wallet”

Step 2: Enter your email and password to create the first of your two private keys and a single signature wallet.

Click “Create Wallet” when you are done

Step 3: On your smartphone, go to key.carbonwallet.com to create the second private key

Step 4: Tether the app on your smartphone to your wallet account

That is how to open a wallet on Carbon. Your wallet is now ready to use.

How do I add cryptocurrencies to Carbon Wallet?

To get started, you need to find out how to add currency to Carbon wallet. Here’s how:

Step 1: On the left side of the screen, click on the currency you want to add

Step 2: Click “Receive Funds” on the far right side to view your Carbon wallet address

Step 3: Copy that address and paste it on an exchange or in another wallet where you have funds to transfer.

That is how to transfer Bitcoin to Carbon wallet or how to transfer Ethereum to Carbon wallet. But since it does not support Ripple, we will not talk about how to transfer Ripple to Carbon wallet.

How to send payments on Carbon wallet?

Next, let’s explore how to send payments on Carbon wallet:

Step 1: Once again, click on the currency you want on the left side of the screen

Step 2: Click the “Send Funds” button in the middle of the screen

After clicking the “Send Funds” button, you will need to provide the recipient’s wallet address. Make sure to double check to avoid sending funds to an incorrect or invalid wallet address.

Step 3:  Confirm all details before you click “Send”

That’s how easy it is to send payments on Carbon wallet.

How do I receive payments on Carbon wallet?

Receiving payments on Carbon is just as easy as adding funds:

Step 1: Click on the currency you want to receive

Just check the left section of the wallet dashboard to see the list of cryptocurrencies.

Step 2: Click “Receive Funds” to view your wallet address

You can also copy and paste all your wallet addresses on Carbon wallet in one file to avoid checking it every time you need to get your wallet addresses.

Step 3: Copy the address and send it to a counterparty, then wait for the funds to reflect in your wallet

That’s how easy it is to receive payments on Carbon wallet.

How safe is Carbon Wallet?

There many Carbon wallet safety features that work together to keep user funds secure. Let us consider some of them:

Private Key Splitting

Carbon wallet secures user funds using two private keys. When setting up the wallet, the first key is generated as soon as you register your account using an email address and password. It is stored on the service provider’s servers in encrypted form. The second one is generated on your smartphone. Having these two keys in separate locations enhances security as it makes it difficult for attackers to access both of them and compromise the account.

Double Verification for Payments

Making a payment on the wallet requires the use of your passphrase as well as a signature from your smartphone. Once again, this is a double layer of protection that makes it difficult for an unauthorized entity to spend funds from the Bitcoin account unless they have access to both.

Private Key Storage

As already mentioned, one private key Carbon wallet is stored on the company’s servers. But to ensure that the service provider has no access to it, the key is encrypted using your password.

HD Algorithm

The wallet automatically generates a new address for every transaction. It is therefore difficult for a malicious actor to track transactions to your account.

Out of Band Two-Factor

This is a form of 2FA commonly used in institutions with high security requirements. It makes use of two separate, unconnected authentication channels to access your account.

Carbon wallet has definitely gone to great lengths to secure user funds. However, the platform cannot be said to be completely safe as it has omitted one of the most important measures – regulatory compliance.

As mentioned above and in our eToro review, they are among the few crypto wallets that are regulated and therefore able to offer comprehensive security.

Carbon Wallet Pros and Cons

Let us now analyze Carbon wallet’s pros and cons.

Carbon Wallet vs. other wallets – how does it compare?

Carbon wallet vs. eToro

• Platform Support

As we’ve mentioned already, even though Carbon wallets can be accessed fromyour mobile device, we’ve encountered some issues for the activation of the mobile app on Android systems. eToro is supported on both Android and iOS systems and we’ve had no issues activating accounts on both.

• Regulation

While Carbon wallet is an unregulated platform, eToro is heavily regulated, which puts eToro at a big advantage in terms of trustworthiness. In fact, the wallet is regulated by agencies like CySec, which are very strict about how transparent platforms have to be in terms of showing how costly and risky trading experiences can be. That is not the case for Carbon wallet.

Carbon wallet vs. Monero GUI

• Ease of Use

Monero GUI is not the simplest wallet to use and takes some getting used to. However, its website answers most of the common concerns that users may experience. Its FAQ section is detailed and there are lots of online resources for support.

Carbon, on the other hand, is not necessarily difficult to use. But there is very limited information on its website and other online platforms to help users overcome issues.

• Safety

While Carbon is a hot wallet and thus more vulnerable to online attacks, Monero GUI is a little safer as it is a desktop wallet. However, Carbon has a lot more measures in place to keep user funds secure such as private key splitting.

Carbon wallet vs. ArcBit

• Functionality

Carbon has a higher level of functionality than ArcBit. To start with, ArcBit is a single currency wallet but Carbon supports multiple currencies. Second, Carbon offers the option of getting a physical or virtual debit card to facilitate easier access to funds.

• Features

ArcBit is chock full of features. For instance, it supports stealth addresses, allows for the creation of reusable stealth addresses. It is also available on more platforms including smartphone and desktop operating systems. In contrast, Carbon has limited features other than storage and debit card support.

Conclusion

Overall, eToro is the most solid choice of all the wallets discussed here. It has much higher versatility than the rest, making it suitable as a comprehensive crypto solution. Furthermore, it offers the most security thanks to the fact that it is regulated.

FAQs