If you are into cryptocurrencies, chances are high that you heard about or already used Crypto wallets. Crypto wallets are software products that store your crypto account’s public or private key. A key is a compound of different characters, and you can share your public key with third parties to make transactions or deposit funds however private keys should be kept protected as they are PINs or passcodes to your wallet.
A crypto wallet enables you to interact with different blockchains. We can think of the blockchain as a digital notebook that everyone in the world can see. It keeps track and records of all the cryptocurrency people have and their transactions on the blockchain. However there is no paper and pen included in this process, instead, this digital notebook stores information in “blocks,” which are like pages of records showing transactions and balances. You can consider your crypto wallet like an app on your phone where you can track your crypto assets and transactions. Unlike a normal wallet that holds money in it, a crypto wallet doesn’t keep the currency instead it keeps the special codes that are called keys which is a proof that your crypto asset is listed on the preferred blockchain.
Basic features of Crypto Wallets
Crypto wallets are used to send and receive cryptocurrencies in a faster way, most of the time in an instant. They are functional and easy to use.
To receive a crypto transfer, you should generate a QR code or an alphanumeric address and share this information with the third party who wants to send you money. If you want to send crypto to third parties, just click the send button within your wallet and follow the instructions step by step. You can buy and sell other coins within your crypto wallet. Just make sure that both parties are interacting on the same blockchain.
There are a couple of different crypto wallets. According to your needs, you can choose the best one for you. Here are some tips about different crypto wallets. There are two main categories: Hot and Cold wallets.
Hot crypto wallet
This one is the most common type. Hot wallets are easy to use and connected to the internet, which makes them a big target for hackers. It is not recommended to keep whole your valuable assets in hot wallets. There are three types of hot wallets; desktop wallets, web wallets, and mobile wallets.
Cold crypto wallets
Cold wallets are preferred by more experienced crypto users as they are not connected to the internet they require a bit more knowledge to use. Also, they are more secure to store higher-value assets in cold crypto wallets. The main cold wallet categories are paper wallets, hardware wallets, custodial and non-custodial wallets. Even though some of these cold wallets are considered as much more secure options, there is an important risk with them. If you ever forget your password, they don’t have a reset your password option, which may cause you to lose all your assets forever. So before choosing the right crypto wallet for yourself, do your little research and understand the pros and cons of different crypto wallets that align with your financial needs.
Many available, secure platforms on the web offer crypto wallets. However, as some of the information is public, crypto wallets are a little bit more vulnerable to cyber-attacks compared to online bank accounts. Reliable platforms such as Jeton provide high-end security for your crypto wallets. It is good to check the security measures of the platform that you want to use before you open an account with them. There are also some security measures that you can take to protect your crypto wallet against cyber attacks. Here are some tips to bear in mind to secure your crypto wallet;
Update your password regularly
Try to use unique passwords that don’t include your personal information. It is important to update your password frequently, such as every three or six months. Make sure you don’t save your passwords in your web browser instead, you can use a password manager.
Always set up 2F-authentification
This feature is generally offered by your service provider however, in many cases, it is optional. So make sure you enable the 2F-authentication option to protect your crypto wallet. If you are using an advanced smartphone, you can also use biometric authentication to access your account.
Distribute your assets into multiple wallets
Let’s remember the old saying, “Don’t put all your eggs in one basket.” You can use digital assets for daily transactions through a hot wallet. However, it would be a good idea to keep your larger investments in cold wallets.
Be aware of phishing scams
Phishing attacks are very common in this area. Please don’t share any information regarding your crypto wallet. As we know, phishing attacks are used to manipulate victims through emails, texts, or phone calls to try to gain access to their bank accounts or crypto wallets. If you are accessing your crypto wallet on web browsers double check the URL of your service provider.
Don’t use public Wifi
Avoid using public Wifi when you log in to your crypto wallet. If you don’t have any other option you can use VPN to hide your IP address.
Check your accounts frequently
You can be aware of unusual transactions if you check your account regularly. If you suspect missing assets from your crypto wallet, immediately cancel any card linked to your account and change your password.
Keep your wallet information private
Social media is a popular place where people talk about their investment success through crypto trading. Don’t reveal any information about your finances on social networks. It might be an invitation to hackers.
