Despite the abundance of crypto wallets available on the market, the inherent problems that plague virtually all of them in varying degrees of importance, in one form or another, remain unsolved and migrate from existing solutions to new ones. In essence, the following are the main problems encountered in crypto wallets across the decentralized economy that force users to resort to storing their assets in several repositories for lack of a unified and wholesome solution capable of catering to their core needs and extended requirements for functions.

Security – The biggest problem facing all hot wallets that follow the custodial or non-custodial mode of operation. Regardless of the underlying blockchain infrastructure of the hosting platform, all hot wallets suffer from the same vulnerabilities that are inherent to all systems that have the embedded human error factor. The loss of private keys, unauthorized access to administrative panels of exchanges, various types of attacks on blockchain protocols, and a myriad other threats make software wallets permanently susceptible to attack with the human factor acting as the main point of failure.

Support for required currencies – Bitcoin may be the king of cryptocurrencies that is the most demanded asset on the market alongside Ethereum and a few others, but there are over 10,000 coins and tokens in circulation on the decentralized market. This abundance is making it difficult for existing wallets to accommodate support for such a number of assets. In many cases, users want to hold rare tokens and coins, but are forced to resort to native project wallets, as the addition of the tokens in question to major wallet lists takes time or may be costly.

Fiat support – The ability to work with banking systems is the core requirement that fast-tacks a wallet for mainstream use by participants of the traditional and decentralized economies. Not all wallets are capable of connecting to bank accounts and have to resort to gateways like PayPal or others, which act as intermediaries. This results in users of cryptocurrencies having to pay commissions for transfers, and users of fiat having to use exchanges in search of favorable exchange rates for their assets of choice.

Technical support – A major problem for virtually all existing wallets is the slow response from their support services, which impedes swift troubleshooting and reduces user experience quality. The incompetence of the support staff in technical matters and their inability to speak properly in their own native language at times, much less a large number of other languages, is a serious problem for overseas users of the application.

Operation speed – Most wallets operate on the Ethereum blockchain, which is well-known for its scalability issues and slow transaction speeds at times of market bottlenecks. This problem is the most incapacitating of all when it comes to making cryptocurrency transactions and, essentially, negates one of the core benefits of blockchain technologies.

Convenience and user experience – A great number of wallets may be functional and well-built, but their design, cumbersome interface and hard-to-read graphics make using them a laborious experience. As users feel the lack of convenience in using an application, or find the onboarding process difficult, they will leave it in favor of another with a more intuitive interface. But there is no guarantee that a wallet with a well-designed interface will boast the same functionality as a more rugged and bulky application.

Combined, the given problems can be encountered in one form or another throughout all wallets currently available in decentralized space.