What is the Novi Wallet

A digital wallet stores your wallet’s private keys and protects your cryptocurrencies from fraud and theft. As an essential tool for exchanging cryptocurrencies, it's good to know what it is and how it works.

First Team
First Team 5 mins
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What is the Novi Wallet

Novi is a digital wallet created by Facebook. It allows users to easily send and receive money in Diem, DiemUSD, or XUS digital currencies. The Novi wallet allows you to connect your bank account or card, and seamlessly send and receive Diem from anyone.

Novi is designed as a custodial wallet, meaning you do not have to remember any complex keys or worry about your ongoing security. The Novi wallet allows you to simply access your funds using a username and password.

Novi will be offered as a standalone app, in selected countries, and in the future Facebook has plans to make it a part of its WhatsApp and Messenger applications.

Key Takeaways
  • A digital wallet is used to store and secure cryptocurrencies.
  • Novi is a digital wallet that can be used to send and receive Diems.
  • Anyone can get a Novi wallet following a straightforward KYC process.
  • Transfers made through Novi wallet are free-of-charge and instantaneous. 
  • Using Novi is safe and secure thanks to built-in fraud protection. 

What is a Digital Wallet?

We are surrounded by digital wallets, Apple Pay, Google Pay, PayPal, and many more. But the Novi wallet is a bit different –– it’s a digital wallet with crypto capabilities. When a new crypto wallet is created, it receives a unique address on the blockchain along with a set of encryption keys used to access that account and perform transactions. 

A crypto digital wallet can be a custodian to your keys, meaning they hold and protect your keys so that only you have access to your digital funds. That’s why oftentimes, a crypto digital wallet may also be referred to as a custodial wallet. Put simply, a custodial wallet simplifies access to your funds using a username and password (or any other authentication method).

A quick way to understand how a digital wallet works is to think of it like a physical wallet. Think of all the things you can do with a physical wallet.

  • Store money safely
  • Safeguard credit cards
  • Organize payment receipts
  • Access important identification
  • Store loyalty cards and coupons

In a majority of cases, a digital wallet can do all these things too –– the only difference is that a crypto wallet can also allow you to access cryptocurrencies, such as Diem and other stablecoins. Like any wallet, the primary purpose of a crypto digital wallet is to keep your private keys, currencies, and important assets stored safely.

Since a digital wallet is accessed online, you can use it to make payments digitally and even in some physical stores. Digital wallets make it easy to transfer money and pay for goods online since you don’t have to manually enter your bank details every time you make a purchase. Simply scan, tap, and approve!

Introduction to the Novi Wallet

Transfering Diem Dollars is a quick and easy way to exchange money with your friends and family. But before you can start using Diem, you’ll need to choose a wallet. 

Since one of the aims of Facebook’s Novi is to improve financial inclusivity, anyone can open a Novi account. To get a Novi wallet, you’ll just need to verify your identity by providing a form of government-issued ID such as your passport or driver's license. Not only does the Novi wallet have built-in fraud protection, but Diem itself is a stable cryptocurrency backed with cash equivalents in the Diem Reserve. 

See Also: FAQ About the Diem Dollar

How to Use the Novi Wallet

After first opening a Novi account, your Novi wallet will be empty. The first thing you’ll need to do is add money to your wallet. Novi users can do this in a number of ways, including transferring money directly from their bank account or card. Once the money arrives in a Novi wallet, it’s automatically converted into Diem currency. For example, if you add $100 USD to your Novi wallet, you will see 100 DiemUSD in your wallet.

Before transferring Diems, you’ll be able to review the fee and exchange rate before the payment is approved. Users will also have the option to add a short message to send to the receiver. Once approved, Diem transactions are processed within a matter of seconds and the receiver can expect to see it in their account almost instantaneously.

If you receive money through Novi, you can decide to store the Diems in your Novi wallet or to withdraw them into your bank account. If you withdraw Diem Dollars into your bank account, they’ll automatically be converted to USD. If someone receives a remittance from abroad, they may be required to convert it into their local currency. The Novi wallet works like any other digital wallet that protects your digital tokens and is the most secure way to access and transfer crypto funds.

What You’ll Need:

  • A smartphone
  • A valid form of government ID

How to Create a Novi Wallet

Step 1: Download the Novi Application

Getting a Novi wallet is quick and easy. The first thing you’ll need to do is download the Novi application from the Apple or Google Play Store when it becomes available in your country.

Step 2: Create a Novi Account

The next step to getting a Novi wallet is to register at Novi. You can open a Novi account using a verifiable government ID such as a driver's license or passport. Without undergoing a basic KYC process and providing a valid and verified account you won’t be able to receive or exchange Diem.

In order to create a Novi account, start by opening the Novi Application. After selecting Create Account, you will be asked to provide personal details, such as:

  • Full Name
  • Mailing Address
  • Email Address
  • Date of Birth

Enter all of the above details in order to complete the application’s registration process. 

Step 3: Verify your Identity

The final step of Novi’s registration process is to verify your identity. In order to verify your identity, ensure you have a valid, up-to-date piece of government-issued ID on hand. 

A valid passport or driver’s licence is considered a verifiable government-issued ID. Verify your identity following the procedure outlined by the Novi application. This will include entering certain pieces of information shown on your ID and providing an up-to-date photo or video of the official document.

Step 4: Set your Security Preferences

Just like with a physical wallet, it’s very important to keep your digital wallet safe. You can do this by ensuring that you’re the only one who has access to your Novi wallet. To do this, Novi provides you with a number of optional security features, including two-step verification and biometric authentication methods such as fingerprint and facial recognition.

When creating your account, you’ll have the opportunity to set-up some of these optional security features. Keep in mind, two-step verification is always the most secure option while a simple password is the least secure way to safeguard your account. 

Step 5: Buy Diem for your Novi Wallet

Once you’ve installed the Novi Application, created an account and verified your identity, you’re almost ready to start using Diem. But before you can start making transfers and purchases, you’ll need to put funds in your Novi wallet. There are a number of ways to purchase Diem Coins. In this guide, we’ll learn how to buy Diem via the Novi wallet Application.

Start by opening the Novi Application on your smartphone or tablet. Next, select the section titled Buy Cryptocurrency and select Buy Diem. In the next screen, you’ll be prompted to select how much Diem you would like to purchase. Keep in mind that Diem Dollars are pegged to the US Dollar, so if you purchase 100 Diems, it will cost you approximately 100 USD. 

Lastly, select your payment method. For example, you can buy Diem Dollars using a bank debit or credit card. When you’re satisfied with the chosen amount and you’ve selected your preferred Diem payment method, complete the purchase and you’ll see the amount reflected in your wallet in a matter of seconds. 

You’re Ready to Start Exchanging Diem!

Registering for a Novi wallet and buying your first Diems shouldn’t take very long. Once these steps are complete, you’ll be able to use your Novi wallet to send money to friends and family or to make purchases in online stores that accept Diem.

To learn more about how to transfer Diem or make online purchases with Diem, read some of First’s other how-to guides here:

 

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