Anonymity, security, and decentralization are the heartbeat of the blockchain network. Blockchain network has taken the world by storm, with cryptocurrency assets thought to be the future of money. A crypto wallet is used to store crypto assets in your portfolio. Moreover, it allows fast and secure transactions.
The crypto wallet lets you access your assets via a mobile app or a web page. Using the wallet is similar to online payment systems like PayPal, only that the transaction is over a blockchain network.
Why You Need to Secure Your Crypto Wallet
Despite the underlying technology, crypto wallets are not immune to internet fraud. Most individuals hold crypto assets as a store of value, while others use them for online transactions. A breach of wallet security could result in the loss of wealth and exposure of personal information.
Undoubtedly, this technology for storing tokens is a double-edged sword. While it facilitates efficient transactions through decentralization, its anonymity makes tracking stolen assets a nightmare. To prevent the loss of crypto assets, you need to select wallets with the following robust security features.
The growing rate of internet fraud calls for two-factor authentications to protect your crypto assets. The feature requires you to use two or more identification channels before accessing the wallet. One-time passwords, verification codes, QR codes, and hardware tokens are examples of 2FA methods.
More often than not, after a transaction or checking your crypto wallet, you forget to log out. A timed logout prevents someone else from accessing your wallet on your device. However, if someone secretly accesses your computer through a leaked IP on the internet, they can access your wallet before the automatic logout. That’s where ISP proxies come in.
Unlimited bandwidth proxy providers use the IP address provided by internet service providers (ISPs) to mask your actual IP address. Therefore, you can protect your IP from leaking, earning extra security for your crypto assets.
Local Private Key Storage
Crypto servers give you access to the broader blockchain network. Nonetheless, storing private keys natively within the server increases the risk of an online attack. It is not worth it to take chances with your crypto portfolio. Therefore, the crypto wallet should allow you to store your private key locally on your device automatically.
Refuse Duplicate or Repeat Payments
A crypto wallet should provide more security features on top of the ones provided by traditional banks. In this way, they should automatically detect transactions and request payment approval. A good crypto wallet generates receipts for each transaction in the form of wallet addresses. Therefore, it denies multiple trades on the same wallet and notifies you of the other attempts.
Robust Interface With Integrated API Interfaces
Cryptocurrency wallet developers can get complicated and quickly forget that the users might not be as knowledgeable as them. As a result, they end up building a sophisticated interface that is hard to navigate. It is vital that you find a crypto wallet with a user-friendly interface, with simple guides and easy navigation. Besides, it should have a well-connected API to crypto exchanges. This way, you can exchange cryptocurrencies without leaving the wallet.
Device malfunctions and software corruptions are not uncommon. Crypto servers, too, can experience the same. Therefore, a wallet should allow easy backups on secure cloud storage. This feature should be automatic because you might forget to run it. A good wallet should also let you back up your wallet on your device or SD card.
The cryptocurrency market is highly volatile. Prices can drop or rise by over 50% within a few days. As an investor, you need to keep track of your assets to know when to exit or do the opposite. However, you might not have the time to monitor the latest developments. A crypto wallet should alert you when your asset reaches a specific price so you can protect your investment from market volatility.
Cryptocurrency adoption is rapidly gaining traction. Similarly, the number of crypto hackers and fraudsters is increasing. Crypto wallets, being the storage of these assets, must be secure and reliable. The future of cryptocurrencies is promising; as more developers join the space, the quality and security of the wallets will increase.