Setup deposit addresses

In Omotix you can set your own deposit addresses. Omotix can handle most wallet addresses, but it's important to understand there are differences in how they are being handled.

Good to know: If you are using a deposit address from an exchange such as Binance or Kraken, it is highly recommend to setup alternative deposit addresses. Read more about setting up alternative addresses.

Best practises

Before you begin setting up your deposit address, it's a good idea to think about the two sorts of deposit addresses possible. Below you will find the pros and cons of using private wallets and exchange wallets. Make sure to check out the best practices for individual crypto coins as well.

Using a private (hardware) wallet.

If you setup a deposit addresses from a wallet that you own, like Metamask, Exodus, Mycelium or hardware wallets like Trezor and Ledger you have pros and cons when using Omotix.

PROS

• It's much more secure (especially if you use a hardware wallet). Because you have control over the private keys.

• In almost any case you will be able to retrieve funds that were sent to the wrong blockchain. For example, when your customer by accident sent his funds to the Binance smart chain instead of the Ethereum chain.

• You do not have to worry about setting up alternative addresses to serve all your customers.

• You can use decentralized exchanges to convert your funds to a currency of choice

CONS

• If you want to use a central exchange such as Binance and Kraken, you have to pay extra network costs to sent the funds to the exchange.

• You have an increased volatility risk, because you will receive the crypto of choice.

• If you lose access to your wallet / private keys, your funds will be lost forever.

Using an exchange

If you setup a deposit address with an exchange such as Binance, Kraken, FTX, and BitFinex there are also benefits and drawbacks.

PROS

• You can immediately convert received funds to a currency of your choice, such as stablecoins or fiat, to reduce volatility risk.

• Your funds are "protected" by the exchange. You do not have to worry about safeguarding your private keys.

• There are no extra costs for sending funds to the exchange, because your customer directly deposits the funds to your exchange account.

CONS

• You will have to use alternative deposit addresses to be able to serve all customers.

• If money is sent to the incorrect blockchain. For example, if your customer sends payments to an Ethereum address via the Binance chain, you are totally reliant on the exchange to collect those assets.

• Your private keys are not in your control. You will lose your money if an exchange goes bankrupt or is hacked.