- A cryptocurrency wallet is a software program to store your cryptocurrencies and empower users for the sending and receiving of digital currency.
- The immense popularity of crypto wallets has paved the way for scammers and hackers to gain interest in it.
- They have proven to be the most vulnerable and hence, security precautions must be followed when using these wallets
Crypto Wallets have experienced exponential growth for a few years. The immense popularity of these wallets has paved the way for scammers and hackers to gain interest in it. They have innovated undisrupted ways to acquire unauthorized access to wallets.
What is a Crypto Wallet?
A cryptocurrency wallet is a software program to store your cryptocurrencies and empower users for the sending and receiving of digital currency. To store any cryptocurrency, one needs to own a digital wallet.
Highlighting the risks associated with these wallets is the fear of it being prone to threats and hacks. They have proven to be the most vulnerable and hence, security precautions must be followed when using these wallets. Loss of private keys is one of the ways to lose all the money. On the other hand, if a hack occurs, or if money is sent to a scammer, users are not entitled to a refund. In other words, transactions cannot be reversed.
Nevertheless, there are ways to protect one’s self from being prone to scams and hacks. Taking mindful steps to secure digital wallets is possible and easy as well. This is to defeat scammers from accomplishing what they intend. One can prove themselves more powerful than the scammers just by being clever and cautious.
Ways to secure your wallets
- Choose a well-known wallet
Numerous availability of wallets leads us to make the wrong choice of wallet often. Wallets from less reputable companies have emerged. They are specifically designed to attract the users, but users are unaware that these wallets are exploits in disguise. Therefore, one must be careful enough in making this decision. Because not all the wallets are backed by authorized companies
Don’t store all the crypto in a single wallet
This is another mindful step one can take. In cases where an exchange is lost for any reason, it is easier to recover the loss and be less affected by it. Hence, paying special attention to where the currencies are stored and what efforts you are making to manage them is crucial. Although this is a time-consuming task, its results can prove worthy of it. It just signifies a smart security management trick.
- Add additional security
Avoiding the use of simple passwords is an easy yet strong way to secure wallets. Employing two-factor authentication methods must be practiced. It is more than crucial to use greater than one key for the authorization of any crypto transaction. As a result, this lessens the chances for frauds to occur.
Backing up the wallet
This includes storing only the necessary amount of cryptos for daily use online. It is recommended to store the majority of the funds in a much secure environment. Offline storage options including paper or USB for the backup will improve the chances for the recovery of a wallet if lost. Hence, this points out the risks associated with an online wallet and the benefits an offline wallet has over it.
Updating the software regularly
Keeping software updated might seem irrelevant but it is as crucial as any other way to secure wallets. This is necessary to be informed or aware of the new security features available. Not only must the wallet software be updated but computer devices through which one gains access to trading must be updated.