Some people think that you need to be a tech expert to succeed in crypto trading. Not necessarily. For sure, the blockchain has a complex architecture, and understanding the underlying protocols may be tricky without a solid IT background. Yet, the real-life trading arena requires more practical skills, such as the ability:
- To sense a promising market;
- To find a trustworthy cryptocurrency wallet;
- To stick to a flexible crypto service when it comes to deposits and withdrawals.
The thing is that it can be pretty challenging to maintain a balance between these 3 factors now that the crypto industry offers an abundance of trading providers and storage solutions.
Amazingly enough, Trust Wallet has all of them under one roof. It supports multiple top-rated blockchains, employs robust security mechanisms, and delivers sleek in-and-out transactions.
In this article, we’ll take a deeper look at its basic traits with a focus on its cashing-out option and, hopefully, help you enter the crypto game with a winning move.
What Is Trust Wallet?
Trust Wallet belongs to the category of software wallets — it’s a mobile app available for free download on both Android and iOS operating systems. It’s a decentralized, non-custodial crypto wallet that allows you to keep your private keys within your device.
Apart from its main function of serving as a storage space for an insanely large number of different digital assets, Trust Wallet provides a myriad of built-in trading options: fiat-to-crypto purchases, decentralized market, access to decentralized apps (dApps), and staking.
The original idea of the designer Viktor Radchenko was to develop a unified storage space for the ERC20 and ERC223 tokens, which he got through various ICO events. The Ukrainian software engineer, based in the States, started working on the project in 2017, and very soon, his app got noticed thanks to the user-friendly design, intuitive navigation, and easy setup.
But the real success came after the leading crypto exchange Binance acquired Trust Wallet in 2018, making it an official wallet of its native Binance Smart Chain (BSC). Trust Wallet then became a host of multiple blockchains and dApps, and eventually, a departure point for over 25 million crypto traders worldwide.
Trust Wallet Features
Very soon after the partnership with Binance, Trust Wallet evolved into a full-package management app for crypto. The list of supported assets and opportunities is really impressive — so let’s take a deeper look inside the feature set of Trust Wallet.
Supported Assets and Blockchains
Trust wallet claims to support over 4.5 million assets. Perhaps you’re wondering whether this number even exists. Well, apart from Bitcoin (BTC), Ethereum (ETH), and the few headline-making altcoins like Dogecoin (DOGE) and Solana (SOL), there is an endless array of known and less-known blockchain-based tokens circulating virtually.
For example, the number of ERC20 tokens built on the Ethereum blockchain has reached 508,000, all of which you can store on Trust Wallet. In addition, Trust Wallet is compatible with 50 other blockchains that also produce tons of stablecoins, native coins of exchange platforms, and the trending NFTs or ERC-721 tokens.
Certainly, you can also store the bestsellers on Trust Wallet, including Binance Coin (BNB), Litecoin (LTC), Ripple (XRP), Polkadot (DOT), Dash (DASH), Shiba Inu (SHIB), SafeMoon (SAFEMOON), Ethereum Classic (ETC), Polygon (MATIC), and Cosmos (ATOM).
Buy Crypto With Fiat Money
Experienced crypto traders can easily swap and transfer their coins from one wallet to another depending on their personal preferences, but when you’re a newcomer, it can be overwhelming to coordinate these transfers — buy crypto from an entry-level provider and then find a compatible wallet to accommodate the newly-acquired coins.
Fortunately, Trust Wallet provides a handy solution to simplify this stage for novices. The wallet has established partnerships with the leading payment providers like Simplex, MoonPay, Ramp Network, Transak, Mercuryo, and Wyre. Note that these are external partners, each coming with its own rule set — payment methods (credit card, debit card, wire transfers, PayPal, SEPA, etc.), available cryptocurrency on sale, local availability, and KYC verification.
Open and easy access to dApps is one of the top features of the Trust Wallet app. dApps are a trending field in the crypto industry, heralding the decentralized future of the internet due to their potential to be used in many other industries (finance, real estate, entertainment). As for now, they’re still levitating around the crypto-trading zone offering popular trading spots where you can communicate with fellow traders in a fully decentralized manner.
You can approach all of the available dApps through the built-in, mobile-optimized browser directly from your Trust Wallet dashboard. For example, here, you can find the largest NFT marketplace, LooksRare, and a range of AMM protocols like Aave and Compound.
Decentralized Exchanges (DEXs)
Trust Wallet gives its users two in-app options to buy, sell, and trade with their crypto assets — Exchange and Swap.
At first glance, the Exchange section doesn’t differ from any regular cryptocurrency exchange as it contains an order book where you can place and respond to market and limit orders. However, this functionality is available only for exchanging BNB to BEP20 tokens as it’s powered by the Binance-native DEX.
The Swap option is a more simplified buy-and-sell functionality that allows swaps between different tokens directly from the wallet interface using wallet-integrated DEXs, such as PancakeSwap.
Note that Trust Wallet doesn’t keep your crypto on its online servers, and it’s fully decentralized — the app only gives you access to the wallet and doesn’t make revenue from your executed transactions. As a non-custodial app wallet, Trust Wallet will allow you full control over your private keys, which will settle on your mobile device immediately after activating the wallet.
From a security point of view, this setup is much better than in-exchange online platforms that hold your private keys in the company’s possession. However, software wallets aren’t even close to the security level that hardware wallets provide. Hardware wallets operate as independent devices and store the keys offline outside the reach of malware and internet scams.
Yet, it’s quite a legit choice for an avid crypto trader to go for a software storage solution, especially if it delivers such a wide range of functionality as Trust Wallet. When it comes to mobile crypto wallets, the “mastery” of providing a safe environment for your private keys lies in the proper backup, which you need to take care of during the initial wallet setup.
Fortunately, Trust Wallet doesn’t have any special setup requirements. It’s a decentralized, community-run software, so you don’t need to complete any registration forms or expose personal information to verify your identity.
Just download the app from AppStore or GoogleStore and follow the on-screen instructions. With Trust Wallet, you won’t have any limits on the number of generated wallets. You can open as many different wallets as you need for the same or for different coins. Trust Wallet will create a new pair of keys every time you open a new wallet.
The most important thing is — don’t neglect the recovery seed. This “password” is stronger than your private keys and the only workable way to restore your wallet from another device in case your mobile somehow gets lost, damaged, or stolen.
How to Withdraw Money From Trust Wallet to Your Bank Account?
Despite the lavish trading options and built-in functionalities, Trust Wallet doesn’t allow you to withdraw fiat. This means that as a Trust Wallet user, you won’t find a direct route to cash out your crypto holdings. However, that isn’t to say that cashing out is impossible on this wallet. If you’ve made some profit from swapping, staking, or an NFT sale and need your “reward” in CAD, USD, AUD, or EUR, you should follow this step-by-step tutorial.
- Exchange or Swap Your Coins for BTC, ETH or Stablecoins
Regardless of how non-mainstream your assets are, Trust Wallets gives you an option to convert them into market-dominant crypto through the buy-and-sell Swap or Exchange features. Our advice is to sell your tokens for Bitcoin, Ethereum, or some of the available stablecoins, such as Tether (USDT), Binance USD (BUSD), DAI, or Gemini (GUSD).
- Deposit Your Crypto to an Entry-Level Crypto Exchange
The majority of centralized crypto exchanges (CEXs) allow you to sell popular cryptocurrencies in exchange for your local currency. When you deposit your crypto assets to your newly-registered exchange account, you can start looking for markets that consist of your crypto and your desired fiat currency (BTC-CAD, for example).
Now that we brought up exchange accounts, you should be aware that different rules apply when using a CEX. They operate as regulated companies in full compliance with local AML/CFT practices and other adopted norms for money businesses. This means that you must go through a KYC before placing or accepting an order. Usually, the higher the withdrawal amount, the higher the verification threshold you should pass.
In Canada, you can find plenty of reliable trading spots for converting crypto into cash. You can either turn to a home-based exchange with proven liquidity (Bitbuy or CoinBerry) or an international crypto service like Binance, Coinbase, Crypto.com, or Kraken, which offer withdrawals through payment methods adjusted to the Canadian system.
In terms of security, you can’t go wrong with any of the mentioned exchanges. They all employ well-established withdrawal practices that come with 2FA or Google Authentication and ensure distributed cold storage of their circulating funds. However, you should carefully approach the exchanges’ withdrawal limits and fees for a favourable outcome.
- Transfer the Cash to Your Bank Account
The stages of the selling process can also differ from one exchange to another, but in general, they all follow a similar pattern. Once you find a suitable buyer and complete the transaction, your cash will get delivered to your exchange fiat account.
At this point, you’ll need to initiate the withdrawal process — transfer the money to your bank account. It’s very important to include the bank policy toward crypto-related transactions in your personal due diligence. The majority of Canadian banks though have rather an amicable attitude towards cryptocurrency due to the regulated crypto landscape in the country. Finally, be patient — these transfers can take up to several business days.
- Check Up Tax Returns
Regardless of the channel, profits arising from selling crypto are subject to Capital Gain Tax in Canada. It applies the same rate of Provincial and Federal Income Tax but only on half of the amount of your profit (if any). When calculating the profit or loss, you should also include the profitability of your transfer that took place on Trust Wallet for full transparency.
Fortunately, the blockchain is a perfectly neat ledger when it comes to transaction records, but if you’re not sure that you can gather all this by yourself, it’s better to rely on an accountant for professional advice.
A Few Words Before You Go…
Decentralized establishments like Trust Wallet are the real face of blockchain technology. They turn into practice the vision that Satoshi Nakamoto presented back in 2009, with the launch of the first digital currency, Bitcoin — a trustless form of cash system where users can interact with each other without the interruption of regulated financial institutions.
However, you can’t skip the centralized middle-man if you want to see a tangible profit from your crypto-trading skills. The cashing out process includes a revealing identity check, service commissions, and tax liability.
All things considered, Trust Wallet is a real feature treasure where you can try out all the latest trends in crypto trading and ensure safe storage for your crypto holdings in the long haul. Hence, a little “withdrawal detour” won’t hurt in return for the perks the wallet offers.