We explain how to use the messenger’s custodial wallet

How Telegram Wallet works

09.12.2023

2256

6 min

On September 13, Telegram, the third most popular messenger, launched a cryptocurrency wallet in partnership with the TON blockchain. The @wallet bot itself, which allows cryptocurrency transactions in Telegram, was launched back in 2022.

What is known about TON

The Open Network (TON) is a decentralized Layer 1 (L1) smart contract network with the Proof of Stake (PoS) consensus algorithm, it enables the creation of fungible and non-fungible tokens (NFTs) as well as financial and gaming applications.

TON runs a virtual machine that manages the state of the network and allows external applications and contract accounts to interact with it.

In November, the blockchain set a world record with a peak speed of 104 714 transactions per second (TPS), well above the results of other networks and Visa and Mastercard payment systems.

Toncoin (TON) is the native token TON. It is used to pay transaction fees, TON Proxy and TON DNS services, and for voting and staking. As of December 8, it ranks 16th in the cryptocurrency ranking with a capitalization of $7,9 billion and is trading at $2,3 (+1,3% overnight).

Market maker DWF Labs joins the TON network as validator

Market maker DWF Labs joins the TON network as validator

Last year, the company invested $10 million in the project

Read more

What is Telegram Wallet

Telegram Wallet is a custodial crypto wallet. This means that the access keys are stored by the messenger’s team. This storage scheme is not the most secure, as transferring keys to third parties can lead to leaks.

Nevertheless, it does have its advantages. If a user forgets his password, they can contact the support team, which will help restore access.

Before TON officially cooperated with Telegram and integrated the wallet into the messenger’s menu, users already had access to most of the features. Thus, the P2P marketplace was integrated into the bot in the fall of 2022. In the new web application, the developers have combined all the previous functions of the wallet in one place and added new ones.

The main Telegram Wallet functions

To get into Telegram Wallet, you need to contact the official bot @wallet, which will offer to launch the tool. After that, the wallet will be displayed in the main menu of the messenger and in personal chats when you click on the “paperclip” in the dialog box.

At the first launch, the messenger immediately warns that Telegram Wallet is a web application developed by a third party. For further use, you need to accept the terms of use.

After launching the wallet, you will see the following tools on the start page:

  • Total balance. It is displayed at the top of the screen. In the settings, you can select the currency to display the balance.
  • Add funds. Cryptocurrency can be purchased via bank card, P2P platform, or transferred from another service.
  • Keyboard shortcuts for crypto transactions. The wallet provides quick access for various crypto transactions including sending, exchanging, and selling.
  • TON Space Beta. This is the gateway to the TON blockchain. Here you can check your Toncoin balance and store NFTs. The developers promise to add access to decentralized applications (DApps) later.
  • Other assets balance. In addition to Toncoin, bitcoin and Tether (USDT) stablecoin balances are also displayed.
  • Funding tools, including bank card transfers, P2P transactions, and transferring from another wallet.

Telegram Wallet settings and usage

In the settings, you can choose language, currency for displaying the balance, and payment currency, as well as check the verification level.

By default, all users have a basic verification level. It allows transfers of up to €35 000 per month, purchases of up to €5000 with a card, and transactions of up to €35 000 via P2P.

The next level is the extended level, which allows incoming transactions up to €1 million. It also allows cryptocurrency purchases up to €25 000 per month with a bank card and increases the P2P limit to €1 million. To pass verification, you must provide a scan of your passport.

The highest level is the advanced level, which removes restrictions on the volume of incoming payments and P2P purchases and offers a monthly card transactions limit of €35 000.

To remove the limit, you need to confirm your real address by providing a bank document with full details, a utility bill, or a rental agreement. The reasons for Telegram’s specific verification requirements remain unknown. These rules are the same for users from different countries.

How to transfer crypto from another wallet to Telegram Wallet

If a user already has digital assets in another wallet, they can be transferred to Telegram Wallet. You can also buy cryptocurrency on a third-party service and send it to your wallet. To do this, select “Deposit crypto from another wallet” in the wallet menu. After that, a full list of cryptocurrencies available for deposit will appear. To receive digital assets on Telegram Wallet, you need to paste the copied wallet address in the recipient field.

How to buy cryptocurrency via Telegram Wallet using a bank card

Click on the “+” symbol next to the balance and select “Bank card,” or go to the bottom of the page and select the “Top up using a bank card” button. Next, select a coin to buy and one of the 36 available payment currencies. The next step is to click the “Buy” button. The bot will open, which will ask you to confirm the operation. It is necessary to check the data and, if everything is correct, click “Pay.”

The bot will generate a payment link leading to the website of the payment service provider. After that, you need to enter the card details and click on the payment button. In a few minutes, the cryptocurrency will be credited to the wallet.

How to buy cryptocurrency in Telegram Wallet via P2P platform

On the P2P platform within Telegram Wallet, you can buy cryptocurrency using bank cards directly from other people. To access the platform, you need to select “P2P market” or “Trade on the P2P market” at the bottom of the main page. In the window that opens, select the “Buy” section.

The app will display a list of sellers’ offers. In the settings, you can specify the currency for payment, the digital asset to buy, the payment method, and the amount. The card of each offer displays the number of transactions it has made and the percentage of successful transactions. It also contains information about the amount of coins available for sale, transaction limits, and accepted payment methods.

Selling cryptocurrency via Telegram Wallet

You can sell cryptocurrency via Telegram Wallet either with a bank card or on the P2P market. In the main menu, you need to go to the “Sell” section and select your preferred method of sale and the required number of coins.

Cryptocurrency exchange via Telegram Wallet

The “Exchange” button is located in the main menu, right under the balance. It becomes active when coins appear in the wallet. At the moment, Telegram Wallet supports only TON, USDT, and BTC.

It should be noted that Telegram Wallet is a separate application that is not connected to the official Telegram. However, it is integrated with the messenger, which makes it convenient to manage cryptocurrency directly from Telegram.

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