Crypto wallet
for business

Yes, a business can have a crypto wallet unless it is forbidden by the laws of the country where the business is incorporated. However, companies should be extra careful when choosing a wallet – the best ones are those designed for corporate clients, such as the Business Wallet by CryptoProcessing.

A business crypto wallet can be used to accept cryptocurrency payments, settle with contractors and affiliates, and withdraw money to a bank account. This is a safe payment flow that allows businesses to stay on the right side of the law.

To set up a professional business wallet, such as the one by CryptoProcessing.com, you will need to sign a client agreement and do a short integration. A personal manager will help adjust the business wallet to your specific needs. After 1-2 days, you’ll be able to use it.

If you choose a regular non-custodial wallet like MetaMask, you will need to install the wallet extension and save the secret seed phrase, which takes a few minutes. However, accepting payments to a regular wallet can lead to security and compliance issues.

Keeping track of the transactions, addresses and wallets is made easy when your company works with a professional business-grade payment processor.

Such services usually deploy the following features:

• Detailed reporting with break-downs by coin, customer and other markers
• Assistance in handling taxes and meeting the regulator’s requirements
• Integration of a business crypto wallet, OTC desk and payment gateway

Equipped with such functionalities, corporate teams find it easier to manage versatile transactions and deliver synergies between operations within treasury, sales and accounting scopes.

Look into the two main classifications for wallets – by custody and hot/old types. Self-custody and hot wallets are the best fit for corporate users.

Custody

The main differentiation between wallets is who controls the private keys. It’s vital as private keys are akin to the PIN to your card. Though you might always reach out to your bank and ask them to assist in creating a new PIN if you forget the old one, it’s not possible with on-chain digital assets like cryptocurrencies. The private keys are exactly what give users the complete freedom and independence of the banks and any other institutions that might use these very access credentials to freeze your company’s assets and/or block specific transactions.

In this regard, all crypto business wallets can be divided into two types:

• Custodial wallets. Software where users retain their private keys. Even though the wallet may be delivered by a provider, such as CryptoProcessing, these Bitcoin/altcoin wallets aren’t completely under the user’s control. The provider has no access to their assets and can’t change the private keys in any way.
• Non-custodial wallets. Exchanges and similar entities usually create such hot wallets. Most users don’t realize that their private keys are stored within the software architecture, which might allow hackers to find the backdoors and siphon off their funds.

Hot / Cold wallets

Another major difference between crypto wallets for corporate users is whether they are connected to the Internet or not.

• Hot wallets are always connected to the Internet, which allows users to receive and send digital assets. Hot wallets are the best fit for companies engaged in constant receipt of funds from customers and disbursal to partners and affiliates.
• Cold wallets are similar to bank vaults as they aren’t connected to the web, and hackers aren’t capable of potentially accessing the stored funds. Businesses can’t use the cold wallets to easily transfer value to their counterparties, but they serve them well as long-term storage for investment/reserve assets.

Generally, it’s advised to stick with custodial wallets and divide the corporate funds across several wallets with the operational capital being stored in hot crypto wallets for business and the long-term reserves being allocated to the cold storage.

Businesses usually seek to find novel ways to add value and look for flexibility in the processing systems they dock with. These questions about corporate-grade crypto wallets will inform your decision-making process:

• How flexible the provider is. CryptoProcessing offers various business models for OTC trading and payment processing operations, which allows the service to customize the solutions in line with the unique ways that your business is run.
• Availability of additional business solutions. Hot wallets for business, OTC desks, and reporting features are must-haves as businesses require highly granular data in their transactions and easier ways to deal with large-scale incoming/outgoing payments.
• Custody type. As we’ve talked about above, self-custody wallets are usually the best option, but the trade-off is the inability to restore funds in case the private keys go missing.
• Hot/cold wallets. Corporate hot wallets are the only option for active transactions in business operations.
• Fees structure. Though most wallets and merchant accounts for crypto processing are free to download and implement, the transactions may incur varying fees. Thus, a thorough review of the conditions for fees and commissions is a necessity.
• Reputation. Take a deep dive into the reputation that the provider has, and learn about the major collaborations and reviews online.

Choosing the business-grade hot wallet can take time, but you’ll be able to easily winnow down the selection using the questions and differentiators from above.