A cryptocurrency wallet is a software that allows users to send and receive cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, etc. It simply stores all the records of transactions and also the private and public key, which is used to perform transactions.
Basically, a public key is similar to an account number. For instance, if person A wants to receive money from person B, then A sends the public key address to B. The private key is similar to an account password and so only account holders know the private key.
In today’s world, there are quite a lot of cryptocurrency exchanges available in the digital market. There is one major backlog feature that’s been faced commonly by all cryptocurrencies exchanges. It is the constant hacking in the crypto sector that has to be taken into consideration.
To safeguard your crypto coins, you must need to protect your cryptocurrency wallet from the fraudulent activities. Let’s know about some of the methods that have been followed to secure your cryptocurrency wallet.
7 Ultimate methods to protect a cryptocurrency wallets
- Before working on cryptocurrencies, the main agenda would be choosing the best cryptocurrency wallet development from a well-known source. It is totally the user’s responsibility to do research about the wallet, read its review, and find out if it is reliable or not.
- The wiser option would be selecting a cold storage wallet instead of online or hot wallets. The cold storage wallets like hardware wallets can help you to keep your private keys safe and secure without the involvement of a third party.
- Your password should be ultimately strong like it has to contain a maximum of 8 characters, including (special characters, numbers, uppercase, lowercase,), and that forms a strong password. If there is any loss or theft of a password, make sure you find a recovery option.
- To have an extra layer of security, two-factor authentication is recommended. If you use an online wallet, then two-factor authentication is necessary, and almost all the online wallets provide a dual layer of security, and you can use them to safeguard your wallet and cryptos as well.
- In the initial stage of developing a wallet, you have a set of private keys. You must back up all your private keys, and that may help you if you lose your keys.
- If you are using a computer device, then you must have installed the best antivirus software because hackers use virus and malware software to access your device and could hack your wallet.
- Always have a backup for your White label multi cryptocurrency wallet. If in case you lose or your device failed, your backup will allow you to access your wallet and through this way, you can backup all your files and move funds to another secure wallet whatever you need.
These are some methods to protect your cryptocurrency wallet from fraudulent activities. As said earlier, choosing wallet types plays an important role, so always be wiser by selecting cold storage wallets instead of hot storage online wallets and avoid third party involvement. By addressing all these methods, you can safeguard your crypto wallet and take full control over private keys that can lead you to attend huge profits!