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ZenGo Wallet Review
ZenGo Wallet is a unique non-custodial cryptocurrency wallet with a “Keyless” functionality. This functionality leans heavily on an advanced cryptography security model which eliminates the need for certain activities like generating or storing private keys. We have described this feature in detail under the ZenGo Wallet Security section.
Some of the salient features of this wallet are
- Simplicity in design coupled with effective functionalities makes this wallet very lucrative to a wide variety of audiences. It offers a high degree of comfort for both newbie and experienced crypto investors.
- ZenGo Wallet is making a solid attempt in moving the digital assets domain to Keyless usage. This means that users need not memorize complex transaction passwords or create a secure backup of seed phrases. It uses facial biometrics to ensure that the account is secure and is controlled solely by the users.
- There are no minimum limits or maximum limits for transaction volumes. It does not levy any additional charges or hidden fees for executing trades or settlement of transactions. There are additional functionalities that allow users to cancel their sent transactions or speed them up with a single tap before they get confirmed on the Blockchain.
- ZenGo uses the innovative Multiparty Computation (MPC) model for enhanced security. This prevents any chances of the company accessing a user’s wallet without compromising the ability to recover the wallet in case of an emergency.
- The ZenGo Wallet mobile application is supported on both Android and iOS platforms. The wallet is listed for downloads on both Google Play Store and App Store.
- It has two dedicated payment partners: MoonPay and Coinmama. MoonPay only processes Mastercard transactions made using credit cards, bank wires, Apple Pay, Google Pay and SamsungPay. On the other hand, Coinmama can process any transaction through credit cards, Apple Pay, SEPA payments and Swift.
- The company is planning to launch a debit card by the end of 2021. It will initially be available only for US residents. We think that If the initial launch in the US is successful, the company could consider releasing it in other countries too.
- The wallet has a broad outreach and is supported in 188 countries and users can sell Bitcoin in Europe, UK and the US. Users can buy or sell over 70+ cryptocurrencies listed on the app.
- The ZenGo Chill StorageTM is a far-sighted service that significantly adds to the company’s credibility and trustworthiness. It is an e-wallet service that will allow you to access your funds even if the company stops operating in the future.
Here’s a short video on how to buy Cryptocurrencies using ZenGo Wallet
The Basics You Need to Know
The ZenGo brand operates under the legal umbrella of KZen Networks Ltd, according to Crunchbase. The company was founded in 2018 and is incorporated in Tel Aviv, Israel. Since its inception, the company has raised USD 24 million from a total of 14 investors. New York-based Insight Partners and the Tel Aviv-based Benson Oak Ventures are the lead investors in KZen Networks. Their recent Series A funding round in April 2021 raised USD 20 million from 8 investors.
The ZenGo Savings is directed primarily towards HODLers. Users can earn a passive income of up to 4% APY (Annual Percentage Yield) by lending or staking their Bitcoins and thereby adding to the liquidity.
Lending using Compound will generate real-time interest accruals and will be deposited in the account after the user withdraws the funds from ZenGo Savings to their wallet. These rewards will be paid in COMP tokens, the native governance token for Compound Protocol. Whereas if a user contributes to ZenGo's liquidity using Nexo tokens, the interest accruals happen on a daily basis in BTC. Since this interest payment is clubbed to the user's BTC balance, one may reap additional benefits of compounding interest from their contributions.
For Staking through ZenGo savings, a user has to first comply with the 33-day initial waiting period to receive their first reward. After this waiting period, the interest credit takes place once every 3-days.
Any deposit or withdrawals on ZenGo savings will attract network fees.
Is ZenGo Wallet Easy to Use?
This wallet is well suited for both beginners in the domain as well as veteran crypto investors. A user testimonial on the ZenGo website claims that new customers can sign-up in less than 20 seconds.
The ‘Help’ section on the company website features many articles addressing a wide variety of topics like general/frequently asked questions, usage guides, withdrawal guides and troubleshooting guides.
ZenGo also offers dedicated customer support which is active 24/7.
As users can access their wallets using facial biometrics they don’t have to remember or backup complicated seed phrases.
Considering all these points, we strongly believe that ZenGo Wallet is very simple and easy to use.
Does ZenGo Wallet Have Fees?
Yes. ZenGo’s charges can be classified into two broad categories; the Exchange fee and Network fee.
The exchange fee is levied for trading in cryptocurrencies. Currently, it is 0.75% of the total transaction volume. This category also includes a variable component charged to cover liquidity fees. The liquidity fee is a marginal percentage of the total volume and varies depending on the coin.
The second category or the Network fee is levied for processing the transactions on the blockchain. This fee is directly proportional to the congestion on the blockchain network. Ideally, a congested network will attract a higher network fee and vice-versa. ZenGo users can choose from any of the three network fee modes; Economy, Regular and Fast. These different fee modes are applicable for BTC, ETH and ERC-20 tokens.
Users might encounter certain charges levied by the payment partners — MoonPay and Coinmama. Sale transactions using MoonPay will attract a processing fee of 1.99% and a marginal spread. Whereas Coinmama charges a variable commission rate in the range of 2.83% to 3.90% depending on the nature of the trade and the Loyalty level of the users.
What Coins Does ZenGo Wallet Support?
ZenGo Wallet supports more than 70 cryptocurrencies. You will find all of the mainstream coins and tokens like Bitcoin, Ethereum, Dogecoin, Binance Coin, Uniswap, etc as well as stablecoins like USDT.
Does it store NFTs, Crypto Art, and Collectibles?
We could not locate any information on ZenGo’s website which suggests that this wallet supports ERC-721 tokens. Hence, we feel that ZenGo users cannot store NFTs, Crypto artworks or digital assets collectables on this wallet.
Is ZenGo Wallet Anonymous?
Transactions made through ZenGo is not completely anonymous. Considering the recent regulatory stance in many countries over anonymous cryptocurrency transactions, this is a fairly good sign.
A user can set up a new account using their email address and can access their wallet using facial biometric recognition.
As far as buying or selling a cryptocurrency is concerned, ZenGo has partnered with MoonPay and Coinmama for transaction processing. Certain KYC requirements might kick in when using these partner platforms.
Is ZenGo Wallet Safe?
The wallet’s security is enhanced with the use of the MPC model. Their website claims that by adopting the MPC model, this wallet can avoid something called a “single point failure”. Instead of the conventional private key, ZenGo creates two independent secret shares using a complex mathematical algorithm. One of these shares is saved on the user’s mobile device whereas the other is securely saved on the ZenGo server.
This complex encryption protocol comes into effect when a user creates a new wallet, These codes are then stored and encrypted using different combinations, as explained by an article on TechCrunch.
This innovative approach not only limits ZenGo’s access to the user’s wallet but also gives the user total control over their funds.
The information on ZenGo Wallets’ cryptography is open-sourced and the relevant documentation is available on GitHub.
Does ZenGo Wallet have an Affiliate program?
Based on the information received from the company, ZenGo may offer a commission for referring first-time crypto buyers. You can reach out to the company for discussing the terms and conditions of this program.