Xapo: Secure Bitcoin Wallet, Coin Storage Vault & Crypto Card App?

Have you heard of Xapo recently? Founded in 2013, Xapo has developed a massive presence in the cryptocurrency industry by offering Bitcoin wallet services, cold wallet storage, and the ability to quickly and easily purchase Bitcoin. Subsequent to the dramatic mainstream entrance of cryptocurrency into the mainstream zeitgeist at the end of 2017, millions of individuals around the world are seeking accessible, uncomplicated methods of accessing, storing, and purchasing crypto investments — a market segment that Xapo has set firmly in their sights.

If you are a newcomer to the world of crypto or a seasoned trader looking for a new exchange, welcome to our review of Xapo.

What is Xapo?

Xapo is a Bitcoin exchange. Aimed at new investors who have just entered this market, Xapo endeavors to explain to its users how the crypto world works. Newer crypto investors are able to leverage the educational materials and services offered by Xapo to smooth the transition from fiat currency to digital money.

Xapo offers users a wallet that stores cryptocurrency in a secure cryptocurrency vault. The wallet, in the form of an app, can be downloaded on any smartphone and allows users to manage funds from anywhere in the world. Xapo places an emphasis on facilitating ease of use and streamlining complex processes, making it ideal for individuals not yet ready to engage the services of a professional exchange.

While Xapo may be aimed at newcomers to the world of finance and cryptocurrency, the individuals behind the Xapo organization are some of the largest names in the financial landscape. Lawrence Summers, the former Secretary of the Treasury of the US under Bill Clinton, is associated with Xapo, as is Dee Hock — the founder of Visa. The presence of these individuals, as well as John Reed — the chairman and founder of Citibank — lends a significant amount of legitimacy to the platform.

During funding, Xapo captured a significant amount of capital — over $40 million USD —  from companies like Benchmark Capital, Grelock Partners, Index Ventures, Fortress Investment, Ribbit Capital, Emergence Capital Partners, Pantera Capital, Digital Currency Group and AME Cloud Ventures.

How To Create A Xapo Account?

Xapo is a global service that focuses on assisting users with buying Bitcoin. Importantly, the Xapo platform allows users from anywhere in the world to purchase Bitcoin, which makes it popular with users in regions in which direct Bitcoin purchases are not available. Xapo verification is relatively simple — users must simply verify their identity before they are able to start trading. Photo ID can be used to verify identity, along with supporting documents and proof of residence.

Xapo accepted ID documents are generally driver’s licenses, passports, and government-issued IDs. As these change from country to country, some items are required.

Xapo verification ID must state the full name of the user and must match the name used to create the account, a color photo, full date of birth,  ID issue date, and a serial number. Both sides of the ID should be uploaded. If your documents do not use the Latin alphabet, you must translate them/ A valid proof of residence can any utility bill or government-issued ID that has your full name, address, date and is no more than 3 months old. It also needs to have the logo of the company or entity that issued it.

If you use the Xapo platform to purchase Bitcoin or withdraw it to another wallet or platform, you may be asked to verify your account with additional information to comply with legislation from different jurisdictions, as the company tries to comply with the rapidly evolving regulatory status of cryptocurrency in many different geographic regions.

How To Use Xapo?

After you have registered, you can use Xapo to buy, sell and send Bitcoin. Xapo users don't have to pay additional fees to send tokens to another Xapo wallets, but sending to external walelts incurs a miner fee (standard or high priority).

Deciding whether to use high priority or not may cost more. Xapo states that high priority transactions generally cost twice as much as standard, but are three times faster.

Buying Bitcoin from Xapo also incurs fees. Cryptocurrency purchases via Xapo are relatively competitive when compared to industry standards, however.

It's important to ensure that you follow the rules set out by Xapo in the terms of use carefully to ensure that you don't encounter any issues when attempting to withdraw your tokens. Breaking the Xapo terms of use is considered a serious offense by the platform, and could result in the loss of wallet access or tokens,

The Xapo Debit Card

Xapo was one of the first companies to offer a cryptocurrency debit card that makes it possible to use Bitcoin anywhere in lieu of fiat currency Users of the Xapo debit card are able to use Bitcoin as a currency and directly purchase real-world goods with cryptocurrency. The exchange rate used to convert the Bitcoin when you purchase things with the card is based on the current value of the Bitcoin in the market at that moment plus fees.

Xapo For Institutions

Xapo is also an option for institutions and institutional investors. Setting up an institutional account with Xapo is somewhat more complex, but allows businesses that use Bitcoin to organize their coins and manage their assets in a more efficient manner.

Xapo stores user cryptocurrency in cold storage, locked in a secret and secure vault. As such, Xapo is an attractive company for investors who possess large quantities of Bitcoin and do not feel secure holding them. Users are able to create multiple accounts to partition and store your funds well and let different users manage them.

Institutional accounts are also able to organize their team and give them Bitcoin to operate with, setting up permission levels and enabling some of them to access funds that others will not be able to.

Is It Safe To Use Xapo?

In short, yes. Xapo is a highly trustworthy platform as long as users verify identity information and follow terms and conditions. Is Xapo a scam? It's highly unlikely — the platform is backed by some of the largest names in the financial world, and provides legitimate service to millions of users.

Is Xapo safe? In addition to storing user cryptocurrency in a highly secure cold vault, the physical location of the Xapo datacenter is an undisclosed secure center in the Swiss Alps, preventing physical incursion. As such, Xapo is extremely safe.

The Xapo Verdict

If you are only interested in Bitcoin, Xapo is an excellent choice. Xapo is safe, reliable, easy to use, and backed by significant financial institutions. The only drawback of the Xapo platform is that it focuses exclusively on Bitcoin — investors interested in other tokens or altcoins will need to find another solution.

Overall, Xapo is a simple, safe option for individuals interested in getting started in the cryptocurrency market.


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