Crypto wallet : With new trading strategies available, transactions are becoming increasingly complex with multiple stakeholders. And because of this, securing bitcoin is an intensive and intricate process.
In recent years, there have been a variety of hacks, thefts, and bad actors in the cryptocurrency world. Windows Wallet is recommended as a wallet that has strong security, provides backup features, and is easy to use.
One way of storing bitcoins is through a software wallet. You should understand how it works before you decide which type to use, especially if you have high volumes of cryptocurrency stored in it.
Lets explore the tips that can help you secure your cryptocurrency wallet. Choosing a robust and secured cryptocurrency wallet isn’t easy because of the many recent thefts and hacks that have plagued some of the most prominent exchanges, including Coinrail, Youbit, Bitfinex and Bitstamp.
Security
Before choosing an exchange, you need to investigate wallets in terms of securing your cryptocurrency. Wallets should have a way to protect bitcoin from theft or loss. Some wallets use multi-sig technology for secure transactions.
They hold one key and the majority is stored with you for added security. These keys can be encrypted for a higher level of protection. Different wallets offer different levels of safety, so it’s up to you to choose what level you need from each one.
Budget
More developers are attracted to this field, which has led to a rise in the amount of wallets on the market. To ensure you choose the most suitable option for your needs, it is important to compare features and understand what features your wallet should have. For example, some private keys are stored with an exchange, meaning that if that company gets hacked or goes bankrupt, you will not be able to access your bitcoin.
Ease of using
If you store crypto assets long-term, it is important to use a hardware wallet. There are many different models and types of wallets available at different price points.
Some hardware wallets are characterized by high levels of security and portability, but lack the user-friendly benefits of software wallets. These lower-cost models ensure that cryptocurrencies are safe from hackers and thieves, but there is a risk that your private key will be stolen if someone gets their hands on your device. Hardware wallets such as Trezor and Ledger Nano S can mitigate this risk, but it is still a possibility.
What is Reputation?
When you create a crypto wallet, it is important to find a company with a proven track record. Companies like Mycelium and Electrum have built up their reputation and are trusted by customers to store their digital assets.
Access to private keys (owning your bitcoin):
Web wallets are vulnerable to hacking attacks and don’t provide the same level of security as if the keys were in your possession. Most bitcoin wallets work like banks, storing your bitcoin and allowing you to spend them.
Since bitcoins can be attacked and taken from a device that stores the private key, using an offline computer to store your private key is more feasible. However, should you want 24/7 access in order to secure your bitcoins, this may not be the best option for you.
Backup features:
Certain features should be a priority when selecting a wallet; the ability to recover your funds in the event of damage, accessing only experienced and familiar wallets, appropriate security features such as two-factor authentication, and finally a wallet that is available on desktop computers, mobile devices and tablets.