Education FAQ

Cryptocurrency vs. E-money Wallets: Which One Is Better?

In this day and age, almost everything can be done online. You can meet people all over the world without leaving your room, go shopping online, order food online, and even have digital money. Digital money can either come in the form of money stored in an e-money wallet, or in the form of a cryptocurrency. What are the pros and cons of each, and which one is better suited for you?

Whether you are using popular e-money wallets like PayPal, Skrill, or Astorpay and Neteller in India, or if you are into Bitcoin, Ethereum, or other cryptocurrencies, here are some of the major similarities and differences of the two.


Most cryptocurrency wallets would not require you to give out any personal information, such as your name or your home address. Most of the time, all you need to have your cryptocurrency wallet set up is an email address. Some wallets do not even ask for your email–sign up, and you now have your cryptocurrency wallet. Ultimately, one of the main features of a cryptocurrency wallet is the ability of the user to remain completely anonymous.

This is why some people have been using cryptocurrency for illegal purposes as well, as virtually almost zero digital footprints are left when transacting with it. However, some wallet providers require verification or the “know your customer” process from their users. These are mostly from wallets that are registered and regulated by the government it is operating under.

On the other hand, an e-money wallet would have a lot of information about you. It would have your name, your contact information, your home address, and even your credit card or banking details. Sometimes, you would even be required to submit a government-issued valid ID as well a proof of billing, all for verification purposes. This means that should you somehow use your e-money wallet for illegal or malicious purposes, it can easily be traced back to you, and your information saved within the system can be used as evidence.

However, most of this information remains encrypted within the system of your wallet provider and is never made public.


The value of cryptocurrency is very volatile. It can change in the next hour, in the next thirty minutes, or even in the next minute. It can go up one moment, and it can go down one moment without any warning. Thus, while the amount of cryptocurrency in your wallet may not change, its value in a real-world currency may change more times than you can even monitor it. Your Bitcoin may be only at $100 value no may be at $300 tomorrow, stay at $100, or go down to $50.

On the other hand, the value of your money in your e-money wallets stays the same no matter what, unless you exchange it to a foreign currency. If you have $100 loaded to your wallet, it will be at $100, no matter how much time passes unless you withdraw it out or cash-in more to your wallet.

This is why many people see cryptocurrency as a form of investment, much like the stock market. Though there is a big argument on the volatility of the industry, on whether it is worth the risk or not, more and more people are being attracted to do cryptocurrency trading.

Final thoughts

Ultimately, it all boils down to what makes you comfortable using the most, and which one would work for you based on your available resources as well as your needs. Regardless of what digital money you choose using, always remember to stay safe, even online.


Leave a Comment

Your email address will not be published. Required fields are marked *