Ladies, have you ever wanted to get into crypto or buy bitcoin? If the answer is yes, I imagine you have doubts about how safe bitcoin is, how to store altcoins and maybe even what is a crypto wallet?! Lucky for you that you’re in the right place. You’re about to learn about Bitcoin wallets and crypto wallet security.
In this article we are going to answer a few very important questions regarding the bitcoin wallet security and cryptocurrency wallets but do not worry, we will try to keep it as interesting as possible. So let’s get started!
What is a Bitcoin Wallet?
In order to understand how to use Bitcoin, you have to get familiar with the notion of using a Bitcoin wallet. That is pretty simple, a “wallet” functions in almost the same way as a bank account – it is an online application or a website where you are able to receive bitcoins and either keep or send them away to other people.
a “wallet” functions in a similar way as a bank account
You probably own a personal bank account which serves as an interface to the regular monetary system. The Bitcoin is the same, except it stores bitcoins and other coins. Another difference is a bank offers fraud protection, whereas with crypto the responsibility is yours.
If you’re hacked or scammed, the money is gone. No one is there to protect you. So, bitcoin wallet security and safe storage of altcoins is a must!
Now imagine just how valuable you find your own personal wallet. You keep it safe inside your purse and when you are at home perhaps even in a safe. Bitcoin wallets contain their own private keys. These are basically secret codes without which you can’t sell or spend your coins.
These private keys are the ones that need to be kept safe, just like you keep your own purse safe or your phone locked with a password.
In this article we will teach you about bitcoin wallet security and how to pick the best wallet.
What Are the Types of Bitcoin Wallets?
There are several types of Bitcoin or crypto wallets that you should get yourself familiar with because only then would you be able to find the most suitable one.
Hardware wallets are physical electronic devices that need to be connected to your computer in order to use your coins. They can also be plugged into phones and tablets. Imagine connecting your memory stick to a computer, this wallet works in the same way.
The most famous hardware wallets on the market are:
What is great about hardware wallets is the fact that they are really reliable and keep your private keys away from hackers. Plus, for your added security suspicious internet applications that may infect both your computer and wallet are also restricted.
By storing your private keys on a device that can be taken anywhere with you, that means that hackers cannot reach it because it is offline.
And as long as you create a backup code, you can always retrieve your coins even if someone steals your hardware wallet.
Let’s be real here, the title “hot” seems interesting, but unfortunately this type of wallet does not provide as much fun and security as the cold one mentioned above.
Hot wallets are the opposite of hardware wallets because they require an internet connection. These wallets therefore generate your private keys only on internet connected devices which isn’t as secure as hardware wallets.
They can be great for small payments, but don’t let them handle your life savings. On the other hand, the online connection makes for very fast transactions plus you can store them on multiple devices. But sometimes it just isn’t worth the risk, so use this wallet only when you really need to.
Some of the most popular ones are:
· Bitcoin Wallet (iOS)
· DropBit (Android)
· Electrum (Desktop)
How to Keep Your Wallet Safe?
Now that you’ve grasped the basics of Bitcoin wallets and their types, it is high time we listed some of the most important tips regarding safety and security.
Make Sure That Your Wallet is Safe
Some companies such as Corion now offer better security measures that provide encryptions that protect your private keys from hackers. It is also recommends that you use more than one wallet, just like more than one bank account. This way you can store them away from each other in case one gets stolen or hacked.
For example, you could put aside one wallet for savings while the other could be for transactions. For your safety, make sure that your private keys are stored somewhere offline.
Turn Off Auto-Updates
If your main wallet is the hot one, then make sure that all auto-updates have been turned off. It is common for applications to get bugs, and no matter how trivial, they could create huge losses for your wallet.
Don’t Forget Authentication
Have you ever had to choose more than one type of authentication, e.g. for your email? It is the same for a crypto wallet. Remember that it is safer to enable the two step authentication (2FA) instead of just one. There are many types of authentications today – inserting digit codes, giving you fingertip, sending an SMS to your phone. Choose the one you personally find the most suitable.
Okay, this is it. To sum up, we have talked about the most basic and important features of a Bitcoin wallet. We mentioned what it represents, different types, and most importantly, tips how to keep it safe.
- Remember that it’s your responsibility to keep your money safe, so always take care of your crypto security, just like you would take care of your house, clothes, regular money.
- Make sure to use a hardware wallet to store bitcoin securely and, because a hot wallet is not reliable enough for long-term storages.
- Use the two step authentication – or even more if possible.
- Do not use an easy PIN code, but also don’t make it too difficult so even you can’t remember it.
- Always verify the reception address because there are many scammers out there. Make sure that you only trust what can be seen on your hardware wallet screen.
- Remember that your software can get compromised anytime, anywhere. Do not open spam or junk mail and do not click on just any link. Also be cautious with unfamiliar Wi-Fi.
- Have fun with crypto!
This is it for now. If you have any questions please feel free to post them in the comment section below. We would love to hear your opinions so do not be shy! It is true that this subject can be intimidating at first, but do not worry, you will get the hang of it quickly.