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Cryptocurrency wallets security

by Bitforx

Posted onJan 21, 2019 by Bitforx

Security is one of the core values that the consumer is looking for while choosing products or services. In the digital era, wallet security has become a number one priority. Misconceptions and lack of information about existing wallet security standards are the main reasons why most people, who are aware both with blockchain and banking systems, tend to choose banks over cryptocurrency wallets. Even though we see cyber attacks on notable blockchain based platforms and sense of stability is hard to perceive, there are plenty of ways to have a secure bank on your phone, or on a small USB type device with all the benefits they have to offer. But you always need to understand that it's solely your responsibility to adopt safe practices to protect your assets.

Types of Wallets

No one denies many incredible features of Bitcoin and altcoins. But with excellent quality, comes higher security concerns. Most of the cryptocurrencies can provide a grand level of insurance if used accurately. Before talking about wallet security features let's identify the types of wallets blockchain can offer so far. We can divide digital wallets into four different groups which are: Hardware wallets, Software wallets, Desktop, and Online wallets. Even though Hardware wallet is the safest way of storing your digital assets, it comes with consequences, high cost, poor choice, really low flexibility, and layers of security measures, so there is a lot to look into.

After understanding what types of wallets we could use, we need to understand ways to secure them individually.

What to consider for your future wallet security 

While and after making a conclusion, it's essential to understand all the consequences of choosing the wallet, because some decisions don't have the flexibility and features you might need. Most people choose online wallets and exchanges, due to functionality and diversity of cryptocurrencies they are supporting. It is essential you have control over your private keys. The provider must have features for wallet security and backups. For flexibility, it is great to have access to your wallet with all the devices, desktop, Android and IOS. While making the decision, the golden rule is to check out the community and brand behind the platform. 

Cryptocurrency wallet security tips

Number one tip would be to use hardware and offline wallets. Having your assets offline, they become immune to all the possible cyber attacks. 

The first choice would still be a Hardware wallet. It's especially practical in use and has the highest security levels. Hardware wallets are USB shaped devices that function only as cryptocurrency wallets. It's impossible to install other software on it, which makes it extremely hard for online thieves to access your assets. In most cases, hardware devices have a backup function, meaning that you can recover your assets even if you lose your device. 

The second choice would be a Cold wallet, which still is software based, but all the funds are stored offline. Not too many cryptocurrency wallets offer this feature. To be more precise, to use a cold wallet, you need to find a digital wallet that has a cold wallet features in its' software. Use their wallet and within transfer your assets from hot to a cold wallet. Meaning making it offline. For an additional tip, you can freeze your cold wallet as long as you would like.

The third choice would be any software, mobile or web-based wallet, and their security measures, the ones that do not support cold wallet functions. We advise choosing the right company to trust your funds. Be cautious with the new names. Some companies try offering great deals and deposits on your first account. The crypto community history has shown that such deals are the beginnings of large scamming projects. Make sure to research about the levels of security measures on the website. Look for a two-factor-authentication option. Make sure that huge withdrawal requests require compliance documents and identity confirmation. Backups are crucial for the wallet security. Last but not least would be to use secure networks and make sure that everything is under your control.

Further discussion about whether cryptocurrency wallets are secure or not will make your awareness grow. We made sure to provide you with every detail in this article and help you understand wallet security options.There are plenty of providers who offer high quality and tremendous security features. In the end, our security depends on us. It depends on us handling our private information and choosing a trusted company. Once you learn more about the types of crypto wallets, their security features, and options, you'll be sure to take responsible steps and adopt safe practices of handling your financial assets. 

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