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Coinomi

Coinomi Wallet Review – Solid Security Record, Supports Hundreds of Assets

Coinomi Wallet At-a-Glance

Coinomi is a security-focused, easy to use and versatile crypto wallet that can store bitcoin and hundreds of different altcoins and tokens.

When it comes to security, Coinomi has a good track record. Its makers say that no Coinomi user has ever been successfully hacked. However, controversy around the wallet erupted last year on Twitter when developer Luke Childs pointed out a potential security flaw in Coinomi’s code.

Read on to get the full scoop on Coinomi and learn everything you need to know before you use it to store your cryptocurrency funds.

Currency Support

Cryptocurrencies

Coinomi wallets can store 154 different cryptocurrencies. That’s a huge number compared to Coinomi competitor Jaxx, which only supports around half as many coins. Exodus— another popular crypto wallet– only supports 30 cryptocoins.

On the other hand, the fact that Coinomi lists several questionable coins and tokens may give one pause. In addition, Coinomi’s dashboard contains promotions that encourage its users to invest in various altcoins. Coinomi supports all ERC20 tokens. Around 100 ERC20 tokens can be found via Coinomi’s dApps menu:

Source: CoinIQ

The process Coinomi uses for adding support for new cryptocoins is unclear. In addition, the company has not published any information about how it decides which tokens to promote in the app.

According to Coinomi’s website:

“Code contributions from non-authorized partners are no longer allowed. To add support for a new currency to Coinomi please get in touch with us.”

Coinomi leaves its users responsible for finding out if any of the ERC20 tokens it lists on the app are scams. At the top of the menu depicted above, a message advises Coinomi users to be cautious about which ERC20 tokens they decide to use.

Any ERC20 token that isn’t listed can be added manually. Coinomi’s support site has detailed instructions for manually adding ERC20 tokens.

Fiat currencies

On the customer service site, Coinomi makes it clear that the wallet itself doesn’t support fiat deposits. According to a support article:

“Unfortunately Coinomi is not accepting FIAT money or debit/credit cards. You can send, receive, and exchange any of our 85+ supported cryptocurrencies and 200+ tokens.”

The inconvenience of Coinomi’s lack of support for fiat deposits is offset by the fact that Coinomi users can convert their fiat funds into crypto using an integrated exchange called Changelly. Coinomi’s dashboard now features a Changelly section, which allows Coinomi users to quickly buy crypto using their debit and credit cards.

Once you deposit crypto funds to Coinomi, the interface tells you how much the coin is worth in fiat. By default, Coinomi displays US dollar values. However, the interface lets you tweak that setting. Coinomi can display equivalent amounts of almost any fiat currency, from the Canadian dollar to the Zambian Kwacha.

Changing currencies

In order to make it easier for Coinomi users to switch one currency for another, Coinomi has partnered with two different non-custodial crypto exchange services: ShapeShift and Changelly.

Changelly

Changelly is like a virtual crypto brokerage service that automates the process of buying and exchanging crypto and fiat currencies. Rather than signing up for a crypto exchange and placing an order manually, Changelly does all the work for you– for a price. Buying cryptocurrency through Changelly is convenient, but the service charges a hefty 10.5% fee every time you use your credit or debit card to buy.

The fact that Coinomi integrates with Changelly is a major plus. Changelly is a good option for crypto investors that just want to buy a small amount of cryptocurrency and hope that its price goes up. On the other hand, if you want to spend large amounts of money on cryptocoins, you can get a better deal by using a full-featured crypto exchange instead.

Related: Changelly Review: Quick and Easy Trades but No Advanced Trading

ShapeShift

ShapeShift is very similar to Changelly, only it’s a pure crypto exchange. In other words, you can’t exchange anything but crypto assets using ShapeShift.

If you own large amounts of bitcoin or some other cryptocoin, ShapeShift provides a quick way to diversify your crypto assets. ShapeShift’s fees are low and its interface is intuitive and easy to use.

On the other hand, American users should know that ShapeShift uses geo-blocks to prevent US residents from trading certain altcoins and tokens. These blocks are meant to stop crypto investors from buying coins that US authorities have deemed to be risky, like basic attention token (BAT), edgeless (EDG) and gnosis (GNO).

Related: ShapeShift.io Review: More Altcoin Trading Options than Most Exchanges

Advanced crypto traders might like the fact that Coinomi lets its users manually set their own mining fees. Mining fees are charges that cover the cost of buying or selling a cryptocurrency.

Lowering the maximum mining fee saves money, but also increases the time it takes to process a transaction.

Hard fork policies

Typically, a hard fork occurs when cryptocoin developers have a disagreement with how the crypto asset should work. Bitcoin cash, for example, is a hard fork of bitcoin that doesn’t follow the SegWit2x standard. Concerns over SegWit2x led bitcoin developers to break away from the bitcoin team and start their own coin.

Some hard forks are more legitimate than others. Coinomi CEO George Kimonis criticized hard forks when he spoke to Bloomberg about bitcoin in early 2018:

“Unfortunately, most fork-based projects we see today are more of a sheer money grab. Looking back a few years from now we might realize that they were just mutations fostered by investors blinded by numerical price increases — rather than honest attempts to contribute to the blockchain ecosystem.”

Coinomi’s support team seems to be proactive about helping their customers navigate the confusion caused by the proliferation of forked coins. Eight extensive knowledge base articles address issues and questions related to hard forks and Coinomi users that accidently have sent bitcoin cash to a bitcoin wallet can recover their funds by following these instructions.

Security & Privacy

Coinomi’s decentralized nature makes the wallet an unattractive target for cyber thieves. Rather than steal from a large pot of digital cash, hackers are limited to attempting to attacking each Coinomi wallet individually.

Even if a hacker did decide to try to break into a Coinomi wallet, they’d need about 90,472 years to do so using a brute force attack, according to a Coinomi knowledge base article.

However, controversy around the Coinomi erupted last year on Twitter when developer Luke Childs pointed out that Coinomi wasn’t protected with SSL.

SSL stands for Secure Sockets Layer. It’s the standard security technology that keeps internet connections secure and guards against the threat of cyber criminals using software to sponge up or alter sensitive information.

Software engineer Jonathan Sterling summarized the back-and-forth in the following way on his technical blog:

“Coinomi doesn’t use SSL for their communication from their Android app to their backend servers. When you open the app, all of your wallet’s addresses are sent in plain text across the internet. Luke Childs noticed and pointed out the glaring security/privacy issue politely via GitHub. Coinomi refused to admit it was a problem. Twitter, Reddit, and GitHub hilarity ensued.”

On Reddit, Childs noted that Coinomi added SSL to its wallet in a recent patch. However, Childs also criticized Coinomi for never thanked him for pointing out the problem or acknowledging that an issue ever existed.

Backups

Coinomi provides a way to recover all your assets in the event that you lose your phone or accidently delete the Coinomi app.

Because Coinomi follows the BIP 0032 protocol, all you need is an 18-word recovery phase to perform the restoration. This phrase is displayed during the wallet’s initial setup.

Downloading and Using Coinomi

Platform support

Coinomi is available on Android and iOS. There are no desktop Coinomi clients.

Android

Coinomi users have given the Android app a four-out-of-five star rating. Most of the negative reviews seem to be minor customer service issues that probably should have been submitted through Coinomi’s support site. Coinomi’s support team addresses critical reviews by offering specific advice and help directly on Google Play.

iOS

Coinomi’s iOS app has a slightly different look and feel, but has the same features. Yet, the iOS Coinomi app has a slightly higher rating. The difference in feedback may be due to the fact that Coinomi’s iOS app is newer compared to the Android app and probably had less bugs when it first debuted. As is the case with the Google Play app, Coinomi’s customer support reps address specific issues by responding to negative reviews directly.

Key features

This is what Coinomi’s dashboard looks like in Android. Links to ShapeShift and Changelly appear in the main menu.

Source: CoinIQ

Adding cryptocoins to Coinomi is easy. All you have to do is click the “Add coins” menu and select the coin you want to add to your Coinomi wallet.

Source: CoinIQ

A similar menu lets you add tokens. Around a hundred or so tokens can be added via Coinomi’s add tokens menu, and any token that isn’t on the list can be added manually.

Source: CoinIQ

More About Coinomi

Origin story

Coinomi was founded in June of 2014 by George Kimonis and John Jegutanis. At the time, Kimonis and Jegutanis weren’t widely known in the cryptocurrency community. However, Coinomi quickly gained popularity because there weren’t many secure, easy-to-use, robust solutions for storing cryptocurrency at the time.

At launch, Coinomi wallets could only handle three digital coins: bitcoin, litecoin and ether. Over time, the Coinomi team slowly began adding support for more and more coins.

Coinomi made headlines in September of 2017, when the company announced that it had partnered with Changelly. Kimonis shared his enthusiasm about the partnership in a press release.

“We are excited to bring Changelly on-board and provide more exchange options for our users – so that they will be given the option to select the most cost-savvy way for themselves.”

Key Players

  • Co-founder and CEO George Kimonis. According to his Twitter bio, Kimonis served in the special forces before he started Coinomi. In addition to Twitter, Kimonis is also active on GitHub and Quora.
  • Co-founder John Jegutanis. Jegutanis is a bitcoin expert and computer scientist who has been interviewed by CoinTelegraph, Bitcoin Magazine and other notable blogs and publications. Prior to joining Coinomi, he was the senior software engineer for the travel startup map2app.

Final Word

Coinomi is an easy-to-use cryptocurrency wallet that integrates with two popular non-custodial crypto exchanges and supports hundreds of different tokens and coins. A previous version of the app lacked SSL functionality. This caused the cryptocurrency community to raise their eyebrows. However, the company seems to have addressed this vulnerability. In addition, Coinomi’s stellar track record thus far seems to indicate that it’s a reliable way to store cryptocurrency assets.

If you’re a beginner level cryptocurrency investor, you will probably like that Coinomi integrates with both Changelly and ShapeShift. Those two non-custodial exchanges will give you all the tools you need to make long term cryptocurrency investments. Those exchanges’ high fees, however, will begin to add up if you spend a large amount of money or trade on a frequent basis.

Another nice thing about Coinomi is that it lets you adjust the amount that you pay in mining fees. Mining fees are typically small, but fees can be quite high during times when a coin network is particularly busy. At the very end of 2017, for example, bitcoin traders paid an average transaction fee of $54.90 according to BitInfoCharts. If you limit the amount that you’re willing to pay in fees using Coinomi, you’ll never pay that much– but it may take longer for your transaction to process.

Alex Munkachy

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