Coinomi Review – Fees, Security, Pros, Cons and Features 2022

Coinomi Pros and Cons

Coinomi wallet, launched in 2014, quickly became one of the most popular crypto wallets in the industry, striking a balance between privacy and robust security and offering a convenient, comprehensive package that covers all bases with a wide range of coins supported. Its recent announcements relating to serious vulnerability concerns are very worrying. However, it has incorporated advanced security measures including strong encryption and cryptography to keep your funds safe.

After having reviewed the Coinomi wallet in detail, including its safety, features, pros and cons, we can say it is not an unsafe option for investors. Read on to find out everything you need to know about Coinomi.

What is Coinomi?

Coinomi is a mobile cryptocurrency wallet based in the UK, designed to support a wide array of digital coins. It also offers support for crypto exchange services for trading. Initially launched in 2014, Coinomi originally supported only iOS devices but later introduced an android app. The founder, George Kimionis, is a Special Forces veteran with a Bachelor of Engineering Degree.  He is also credited with founding Cryptean, an independent crypto investment platform. Though Coinomi is not regulated, it still offers robust safety features for its users which we will discuss at length below.

What wallet type is Coinomi?

• Mobile crypto wallet
• Multiple coin support
• Not regulated
• Not open-source

What cryptocurrencies does Coinomi support?

What fees does Coinomi have?

Coinomi wallet does not have any fees and offers free-of-charge services. However, any time you carry out an outgoing transaction from the wallet, you will need to pay mining fees. These fees vary from one cryptocurrency to another and differ depending on network conditions. They are used to pay network miners who are responsible for confirming transactions and adding them to the relevant blockchain. Other than these mining fees, there are no Coinomi wallet fees.

How to open your Coinomi account

Now that we have the basics out of the way, let us find out how to open Coinomi wallet. To start with, we will need to download the Coinomi app.

Step 1:  Download the Coinomi app from Apple AppStore if your device uses iOS or Google Play Store if you are an Android user

Step 2: Once the download is complete, click ‘Create a New Wallet’

Step 3: The next screen will present your recovery pass phrase. Copy the phrase on paper, and store the backups in secure locations. Note that this phrase can allow you to recreate your wallet if ever you lose your device. Do not share it with anyone because they can use it to access and control your account from any device. Once you are done, click ‘I have safely stored my recovery phrase.’

Step 4: After you create a backup of your recovery phrase and save it to your phone, you will get a prompt to confirm it.

Step 5: Next, you will get a prompt to create a password for your account. Use a combination of lower and uppercase characters, as well as numbers and symbols. Though the minimum viable password length is eight digits, you can extend this even further to enhance security.

Step 6: After setting a password, you will get a prompt to select the cryptocurrencies you wish to have on your wallet’s display.

Step 7: Read through the legal disclaimer and click “I agree”

Your Coinomi wallet is now ready to use.

Now that we have figured out how to open a wallet on Coinomi, let us find out how to transfer bitcoin to Coinomi wallet as well as other transaction tips and tricks.

How do I add cryptocurrencies to Coinomi?

The next logical question would have to do with how to add currency to Coinomi wallet in order to start creating transactions.

As it is with anything else on this wallet, the procedure for adding crypto coins is rather simple. There are different methods of doing this, depending on whether you already have crypto coins in another wallet or not. If you already have coins, here is what you need to do:

Step 1: Go to the wallet in which you are holding the coins

Step 2: Select ‘Send’ cryptocurrencies

Step 3: Paste the address of your Coinomi wallet into the receiving address

Step 4: Input the amount and after confirming that all the details are correct, hit ‘Send’

If you do not already have cryptocurrencies, you need to buy some before you start using the Coinomi wallet. Keep in mind though that Coinomi does not support any fiat currencies. Therefore, you cannot use a credit card or bank transfer to add coins to your account. Here are the options you can use instead:

Bitcoin ATM

Step 1: Go to a Bitcoin ATM

Step 2: Convert fiat currency into Bitcoin

Step 3: Send it to your Coinomi BTC wallet

Online Crypto Exchange

Step 1: Use an online exchange to convert fiat to the crypto you want

Step 2: Send it to your Coinomi wallet address

How to send payments on Coinomi

If you are wondering how to send payments on Coinomi wallet, here is what you need to do:

Step 1: Tap the menu icon on the top left corner of your Coinomi app to view the list of available cryptocurrencies. For illustration purposes, we will use bitcoin

Step 2: Tap the ‘Send’ button at the bottom of the screen

Step 3: Enter the address of your recipient

Step 4: Input the amount of Bitcoin that you want to send

Step 5: Double check that the address and amount is correct and then hit ‘Send’

Note that the procedure on how to transfer Ethereum to Coinomi wallet, how to transfer Ripple to Coinomi wallet as well as bitcoin and any other crypto is basically the same. The only thing you need to do differently is to select the relevant coin from the drop down menu that lists all available options.

How do i receive payments on Coinomi?

Another common question is on how to receive payments on Coinomi wallet. Here is what you need to do:

Step 1: Tap the menu icon on the top left corner of the app

Step 2: From the drop down menu that appears, tap the coin you want to receive. Under wallet, you will see your wallet address

Step 3: Copy the wallet address

Step 4: Send the wallet address to the person you want to receive coins from or type it on the exchange from which you want to send coins to your address

To check the wallet balance, click ‘Balance’ at the bottom of the screen. It will show all transaction activities as well as the account balance.

How safe is Coinomi?

Coinomi safety is one of top highlights of this wallet as it combines multiple security features. Let us examine some of the most noteworthy security features that the wallet offers:

Here are the security features that the wallet offers users:

HD Wallet

Coinomi is a Hierarchical Deterministic (HD) wallet. Essentially, the HD algorithm is what generates the seed for every wallet. The seed refers to a protective phrase, unique for each user. Each one is generated after 100,000 rounds of SHA256, making it virtually unbreakable. This seed phrase appears in the form of a series of seemingly random words.

It functions as a master password and can be used to restore your account and provide an extra security layer. In case you lose your mobile device or it gets stolen, your funds remain safe unless you have given out your password and/or seed phrase. You can use this seed phrase to restore your account on another device, with your funds intact.

Private Keys Storage

Coinomi wallet does not store your private keys. Rather, as a mobile wallet, it stores each user’s private keys on their mobile devices. This means that even if Coinomi is to get hacked, users’ funds would remain intact as the service provider does not hold any private keys.

New Wallet Address for Every Transaction

HD wallets such as Coinomi generate a new wallet address for every transaction. Courtesy of this feature, users enjoy both privacy and safety. The feature makes it difficult to link transactions to an account. Therefore, there is no way of identifying high-transaction accounts and targeting them for malicious attacks.

Anonymous IP

Coinomi is a Hierarchical Deterministic (HD) wallet. Essentially, the HD algorithm is what generates the seed for every wallet. The seed refers to a protective phrase, unique for each user. Each one is generated after 100,000 rounds of SHA256, making it virtually unbreakable. This seed phrase appears in the form of a series of seemingly random words.

Security Concerns

With all of the above safety measures in mind, it is evident that Coinomi takes security seriously. It has gone to great lengths to ensure that users’ funds are inaccessible to bad actors. However, there have been some concerns about the safety of the wallet’s code. Though it started out with an open-source code, some parts of its code were later closed. In this state, external developers cannot identify loopholes in the code.

Another security concern has to do with the fact that it is not yet compliant with crypto regulators such as the FCA. eToro is one of the few crypto wallet service providers which is fully regulated by the FCA as well as CySEC and is thus a safer alternative.

Coinomi vs. other wallets – how does it compare?

In order to fully explore whether this is the best wallet, we will undertake a comparison of its top features against those of three other popular crypto wallets.

Coinomi vs. eToro

Coinomi is a solid crypto wallet with top-notch security features. However, it falls short in comparison to eToro when it comes to regulatory compliance. eToro holds licenses from both the FCA and CySEC. This places it at the top of the league in terms of security.

Coinomi vs. Cryptonator

Cryptonator has a strong security reputation due to its use of 2FA and is also a popular choice for privacy-centric users. Coinomi is, however, a more secure option in comparison. Being a mobile wallet, it is more difficult to compromise than web-based Cryptonator. Coinomi also has more robust security features such as HD algorithms.

Coinomi vs. MyEtherWallet

MyEtherWallet (MEW) has an advantage over Coinomi in the sense that it is fully open-source. In contrast, only parts of Coinomi’s code are open source, which is a minus from a user’s viewpoint. However, Coinomi offers support for a wider range of cryptocurrencies. And though both have mobile apps, there is no desktop app for MEW, making Coinomi more versatile.

Conclusion

Coinomi is a vastly popular cryptocurrency wallet with a robust design and strong selling points. It beats most other crypto wallets but does not match up to eToro which is more secure and has regulatory compliance. If you want to learn a little more check out this comprehensive eToro review.

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