Looking for a quality and reliable mobile wallet that supports Lightning Network? Then you shouldn’t miss the BlueWallet app. Let’s find out how BlueWallet works, what features it supports, and whether it’s safe to store Bitcoins on BlueWallet. More in this BlueWallet review!
BlueWallet review at a glance
BlueWallet is a Bitcoin wallet for smartphones and desktops. The wallet allows you to receive, send and store bitcoins, as well as buy BTC for classic currencies (including CZK).
You can create any number of bitcoin wallets in the BlueWallet app. You can choose from three types: a classic BTC wallet, a multi-signature wallet, or a wallet for the Lightning Network.
The first two wallets are non-custodial, so the private keys are stored directly on the user’s device. Lightning Wallet is custodial by default (cryptocurrency is stored on BlueWallet servers), but more advanced users can change the wallet to non-custodial.
If you already have a wallet, you can insert it into the app using any format (WIF, XPUB, private key, seed, and others). BlueWallet will automatically recognize the format you insert, which makes the whole process extremely simple.
The application has a simple interface, intuitive controls, and Czech language support. Access to the app is protected by fingerprints and the wallets generated are saved with a seed, so you can restore them if your mobile is lost or stolen.
Advantages:
- Non-custodial wallet
- Transparent (open-source)
- Lightning Network support
- A multi-sig wallet can be created
- Czech
Disadvantages:
- It only supports BTC
- LN wallets are basically custodial
BlueWallet – Basic Information
BlueWallet is a non-custodial Bitcoin and Lightning wallet that allows users to securely store, send, and receive Bitcoin and Lightning Network payments. The wallet was developed by BlueWallet Services, which is based in Estonia and is available for both iOS and Android devices.
The wallet’s interface is designed to be simple and user-friendly, making it easy for both beginners and advanced users to manage their Bitcoin and Lightning assets. The wallet also offers a variety of features, including the ability to connect to your own full node, purchase Bitcoin via the app, and use the Lightning Network for fast and cheap payments.
One of the key features of BlueWallet is its support for the Lightning Network, which is a second-layer protocol that allows for faster and cheaper Bitcoin transactions. With BlueWallet, users can send and receive Lightning payments, as well as open and close channels on the Lightning Network.
BlueWallet is a non-custodial wallet, meaning that the user has full control over their private keys and funds. This makes it a more secure option compared to custodial wallets, where the user’s funds are held by a third party. However, it also means that the user is responsible for keeping their private keys safe and secure.
BlueWallet overview
BlueWallet is a bitcoin wallet that allows you to store and send BTC. The wallet is available for smartphones with Android or iOS operating systems. You can also download a desktop app for the macOS desktop.
You can create any number of wallets through BlueWallet, with 3 different types available:
- A regular BTC wallet
- Lightning Network Wallet
- Multi-signature wallet (Uložištěor Vault in-app)
If you already have a wallet and want to link it to the app, that’s really unique. They simply click the Importovat peněženkuet button and enter the data they have in the text field – for example, recovery phrase (seed), private key, WIF, or extended public key (xPub). BlueWallet can handle any format.
SUPPORTED CRYPTOCURRENCIES
BlueWallet only supports Bitcoin. The wallet does not support Ethereum or other altcoins.
BLUEWALLET AND FEES
BlueWallet doesn’t charge any fees, but you’ll still see them in the app.
First, you need to pay a transaction fee to send a bitcoin transaction. However, these fees are not charged by BlueWallet but are part of the Bitcoin Network or the LN Network. You will also pay a fee to buy or sell BTC for fiat. However, these fees are charged by third-party merchants, so BlueWallet will not affect them. The wallet has no minimum or maximum limits for storing or sending bitcoins.
Types of wallets
As mentioned above, BlueWallet supports 3 types of wallets. Now let’s take a look at how each wallet works and how they differ.
A REGULAR BITCOIN WALLET
The first variant is a traditional Bitcoin wallet that works directly on the Bitcoin blockchain. This is a non-custodial wallet, so private keys are not held by a third party and are stored directly on your phone.
Wallets created by default are in default bech32 format (Segwit native). In advanced settings, you can also create wallets in P2SH format (Segwit compatible), but this is less efficient and more costly from a transactional point of view.
LIGHTNING NETWORK WALLET
BlueWallet offers two variants of the Lightning Network Wallet. The first option, which is easier for regular users, stores sensitive information on her BlueWallet servers. This is therefore a depot solution as the cryptocurrency is managed by a third party.
Experienced users can create their own node (server) through her LND Hub which acts as a link between BlueWallet and MyNode. Of course, such a solution is more secure (private keys are held directly by the user), but requires advanced programming skills.
MULTISIG WALLET (STORAGE)
The final variant is a Bitcoin wallet or multi-sig wallet with multiple signatures. You can find it in the application named Úložiště (Safe in English). Again, this is a non-custodial wallet, so private keys are held directly by the user.
Also, how does a multi sig wallet differ from a traditional wallet? The main difference is that a multi-sig wallet has more private keys (specifically three). Payments from this wallet must be signed from at least one other wallet or device.
You can generate a private key through BlueWallet or import a key from an existing wallet. For example, if you’re importing keys from a hardware wallet, you’ll need to confirm the payment in both BlueWallet and your hardware wallet. Otherwise, the payment will not be executed.
WATCH-ONLY WALLETS
Also worth noting is support for watch-only wallets. why? A watch-only wallet is a wallet that cannot send money. You can track your wallet balance and create an address to receive payments, but your rights end there.
Watch-only wallets are ideal if you want to monitor your hardware wallet balance with a mobile app. Just import your public key. Your cryptocurrency stays safe on your hardware wallet as you never enter your private key into the app.
Buying BTC via BlueWallet
The BlueWallet app allows you to buy and sell bitcoin against traditional currencies (euro, crown, dollar and others).
You have two options:
buy through the P2P marketplace or buy through the MoonPay service. Either way, you can choose your preferred currency and payment method.
You can find the P2P marketplace under the name Local Trader in the Nastavení → Nástroje tab. The exchange conditions, including the exchange rate, are determined by the user who placed the offer on the market. Purchasing through MoonPay is easy but requires ID verification. The minimum order amount is 750 crowns (30€) and the fee is about 4.50% (minimum $3.99; pay by card).
The BlueWallet app allows you to buy and sell bitcoin against traditional currencies (euro, crown, dollar and others).
You have two options:
- buy through the P2P marketplace or buy through the MoonPay service. Either way, you can choose your preferred currency and payment method. You can find the P2P marketplace under the name Local Trader in the Nastavení → Nástroje tab. The exchange conditions, including the exchange rate, are determined by the user who placed the offer on the market.
- Purchasing through MoonPay is easy but requires ID verification. The minimum order amount is 750 crowns (30€) and the fee is about 4.50% (minimum $3.99; pay by card).
WHERE TO BUY CRYPTOCURRENCIES?
Want to buy crypto with coins, euros or dollars? Blue Wallet allows you to do this, but you will have to pay a rather steep fee.
Is BlueWallet secure?
The wallet is a non-custodial wallet, so private keys are stored directly in your mobile phone and you are responsible for their security. The wallet operator does not have access to the private keys, so they cannot be lost, appropriated, or intercepted.
Access to the application can be secured with biometrics (fingerprints). In the settings, you can also enable encrypted storage of private key information.
The only possible downside is that the app doesn’t support two-factor authentication.
BULK TRANSACTIONS
You can also include multiple recipients in a single transaction (called a bulk transaction). In this case, fewer data is stored on the blockchain, so transactions are cheaper than sending individual cryptocurrencies. However, this function is not available with the Lightning wallet.
You create a bulk transaction by clicking the three dots at the top right of the send payment window and selecting the next recipient.
Experience with BlueWallet
The app has been around since 2017. The team behind the wallet and the community of developers and users that have formed around BlueWallet participated in the development of this app. However, the project is anonymous, so you won’t know much about the authors or the operating company (Bluewallet Services).
The source code of the application is publicly available (open source) so the operation of the wallet is completely transparent. However, this means that the source code can be viewed by anyone, whether they want to improve the application or are looking for cracks to exploit. The application has a Czech translation, the balance is displayed in the selected currency (including CZK) and the MoonPay exchange supports payments in kroner.
WHAT TO WATCH OUT FOR?
Lightning Wallet is essentially custodial, so the private keys reside on BlueWallet servers.
Custody solutions are practical but have certain risks. For example, if the server is hacked or fraud occurs, you run the risk of losing your stored bitcoins. In such a case, BlueWallet is not responsible for any damages incurred and the user is not entitled to compensation. BlueWallet emphasizes this in the trading contract and recommends that users keep only small amounts on the LN wallet.
BlueWallet Review Summary
BlueWallet is a trusted bitcoin wallet with an excellent reputation.
The main advantage of Wallet is Lightning Network support, the ability to create multi-signature wallets, easy wallet import, or Czech language support. We must also appreciate the simplicity of use and minimalist design.
On the other hand, not much. Probably just the lack of two-factor authentication and basic (custodial) settings of the Lightning wallet. The downside is also the higher fees when exchanging Bitcoins for fiat currency. However, these fees are determined by the intermediary (MoonPay) and not by BlueWallet.
IS BLUEWALLET WORTH IT?
BlueWallet is the perfect choice for all Bitcoin fans looking for a simple mobile wallet with Lightning Network support.
The interface is clear and intuitive, which is especially appreciated by beginners. At the same time, the application contains some advanced functions and tools that other mobile wallets do not normally support (LN, multi-signature wallet, P2P marketplace, bulk trading, etc.).
You may also like, Electrum Wallet Review, Fees, Guide, and Experience 2023
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