What's in for crypto wallet companies?

[Welsh]

data can be really really valuable.

Not just really valuable, but probably one of the things most companies are looking for these days. Most of it is for advertising purposes, and the more up to date information they have on people, the better marketing strategies they have, which will directly correlate with how successful their business is. So, I would argue that data is probably the most valuable thing a company can have, not just valuable.

I hate to admit it, but collecting data from a company stand point is probably vital to their success. Although, I'm definitely not saying I like the fact we've gone down this road, and personally I'd like to see less privacy invasive data collection, but honestly I think we're past that point.

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[hugeblack]

Profit is not always related to the money obtained directly, but indirectly, good reputation, fame, adding work to your CV, helping others are all things that bring you money indirectly, and therefore all open-source, self-hosted wallets are based on such a philosophy.

A large part of the free wallets collects data and sells it to companies, governments, tracking sites, etc. This assumption includes all free self-hosted services including block explorers, tracking sites, multi-currency wallets.

Many developers are people who have previously invested in this project, and therefore its success means profits for them.

[Welsh]

Profit is not always related to the money obtained directly, but indirectly, good reputation, fame, adding work to your CV, helping others are all things that bring you money indirectly, and therefore all open-source, self-hosted wallets are based on such a philosophy.

I wouldn't go as far to say that "all" open source software is following that philosophy.

Not always, but at least there are some people out there that want to contribute to what they consider a worthy project. I mean, if we take Satoshi no matter his background he didn't exploit Bitcoin to better his career or status. They just made something they thought the world needed. So, we do know that there are people out there that aren't always looking to benefit from it directly.

Sadly, capitalism does encourage what you've said, and therefore the majority are doing it to better themselves in one way or another.

[Findingnemo]

There are different types of wallets are there so they are making money in different ways which probably varies with one from another. Lets take coinbase wallet which is custodial so they charge fee from you which is always higher than the actual fee needed and also they batch the transactions means they save lot of funds and only spend less from what they have collected.

Next multi crypto wallet as others said they may charge gee before the integration of a new coin and also they take commission while swapping one from another.

[mk4]

I hate to admit it, but collecting data from a company stand point is probably vital to their success. Although, I'm definitely not saying I like the fact we've gone down this road, and personally I'd like to see less privacy invasive data collection, but honestly I think we're past that point.

Unfortunate truth indeed. I thought otherwise in the past, until when I started running websites/businesses. Anyone that tried running a website or online service would immediately realize how tremendously important data is.

[5W-KILO]

I learnt a lot reading peoples comment in this section of mine, thank you all for all the contributions but there are some wallets that have insanely high fee more than the others and they are always centralised wallets like Coinbase for examples and yet people are still using this wallet.

[pawanjain]

1. Some wallets are just here to contribute to the industry, and probably for the devs to have some development experience for their portfolios. (e.g. Electrum)
2. Some non-Bitcoin wallets have a built in swap feature where they route to DEXs, and they add a small fee on top of that. (e.g. MetaMask)
3. Some probably collect data.

Adding to this

4. Some wallets get their revenue from the number of downloads on Playstore/Appstore
5. Some wallets have advertisements and gain ad revenue from them

[5W-KILO]

1. Some wallets are just here to contribute to the industry, and probably for the devs to have some development experience for their portfolios. (e.g. Electrum)
2. Some non-Bitcoin wallets have a built in swap feature where they route to DEXs, and they add a small fee on top of that. (e.g. MetaMask)
3. Some probably collect data.

Adding to this

4. Some wallets get their revenue from the number of downloads on Playstore/Appstore
5. Some wallets have advertisements and gain ad revenue from them

How is your last point valid? Can you use a crypto wallet that shows ads when you launch and try to make some transactions?

[passwordnow]

5. Some wallets have advertisements and gain ad revenue from them

How is your last point valid? Can you use a crypto wallet that shows ads when you launch and try to make some transactions?

It's like showing some banners or connecting it to google adsense (if it's a website). I don't know if google adsense is available for those desktop wallets where they can be placed at the top of the interface of that wallet.
But most likely, it's like having those advertisements that has come from their inquiry. I can't really remember if I've used and saw one that has it on its own platform.

[pawanjain]

5. Some wallets have advertisements and gain ad revenue from them

How is your last point valid? Can you use a crypto wallet that shows ads when you launch and try to make some transactions?

It's like showing some banners or connecting it to google adsense (if it's a website). I don't know if google adsense is available for those desktop wallets where they can be placed at the top of the interface of that wallet.
But most likely, it's like having those advertisements that has come from their inquiry. I can't really remember if I've used and saw one that has it on its own platform.

Yeah you are right. There are some wallets which do provide advertising especially on mobile apps.
For instance the open source wallet Mycelium has this kind of advertising. Obviously this generates revenue to the developers.