Since their inception, cryptocurrencies have been enjoying consistent price upsurges, attracting numerous new investors and traders on a daily basis.
Cryptocurrencies are digital or virtual currencies that make use of cryptography. A major difference between crypto and traditional currencies is that the former does not have a central authoritative figure, which is one of the primary reasons behind its popularity.
However, the growth of cryptocurrency price, value, and profits is also leading to the unfortunate growth of cyber-attacks against the owners of these digital currencies. To invest in bitcoins you can use Bitcoin trading App
In this blog, we shed light on crypto wallets, tips to select them, and ways to protect them.
Crypto Wallets – Why Use Them
A crypto wallet is used to keep cryptocurrencies. There are several benefits of using a crypto wallet to store your digital currencies, with the main one being convenience. When all your virtual coins are available to you on a single platform, it makes storage, tracking, and transactions considerably easier.
A second benefit behind utilizing crypto wallets is safety, as these wallets – especially cold wallets – can prevent hackers, thieves, or people with other ill-intents, at bay. This way, you can trade, send, receive, or store cryptocurrencies without being concerned about safety or security issues.
Brief Guide to Selecting Crypto Wallets
There are several factors that you need to consider while choosing a crypto wallet. First of all, you should consider the specific currencies that you will be storing, and ensure that your chosen wallet is compatible with those currencies. Ideally, you should pick a digital wallet that can store multiple cryptocurrencies.
Security, of course, is another extremely important consideration. Make sure to check all the security features of the wallet, such as two-factor authentication.
Lastly, you should choose a wallet based on your personal preferences and needs.
How to Keep Your Crypto Android Wallet Safe and Sound:
1) Focus on two-factor authentication:
First off, pick a crypto android wallet containing two-factor authentication, also known as 2FA. Wallets having this feature demand verification prior to executing any activity, which means that you and your cryptocurrencies can benefit from an additional safety layer. In case someone else tries to access your android wallet, the 2FA requirement will notify you.
2) Cold over hot:
When it comes to crypto wallets, you can choose from two options: hot or cold. A cold crypto Android wallet is one that is disconnected from the internet. On the other hand, a hot wallet is connected to the internet. What this essentially means is that, unlike a hot wallet, a cold wallet is not vulnerable to cyber-crimes and hacks. In addition to that, cold wallets are encrypted, which means that they offer enhanced security for storing private keys. However, a simple rule of thumb is to invest in both hot and cold wallets to benefit from their specific features.
3) Keep your private key confidential:
Last but not least, do not share your private key with anyone. It’s your personal key and should be treated as such. One way to ensure the safety of your private keys is by keeping them offline. In other words, you should put down the key on a small paper and place it somewhere extremely secure in your house. You can also use a cold wallet, which is not connected to the internet and will therefore not be vulnerable to cyber-attacks.
While cyber-crime attempts in the crypto space are not exactly rare, there is no need for you to be concerned as long as you adhere to the right security measures. We hope that this piece on crypto wallets will help you enhance and maintain the safety and security of your crypto Android wallet and, by extension, your digital assets.