Concerned about the security of your cryptos? Follow these simple steps to secure your cryptocurrency wallet first
Your cryptocurrencies can become vulnerable to the cyber threats if the wallets used to store them are not secured the way it should be. These virtual currencies are always at threat due to the lack of using a secure wallet. As depicted by a blockchain Development Company in India, a crypto wallet not only stores your cryptocurrencies, but also contains a private key which allows for trading them online on the trading exchanges as well.
The private key of the wallet is the only digital signature or identity of the digital asset which, if passed on to the wrong hands then it can be used for stealing the cryptos or even can perform fraudulent transactions as well. The blockchain development companies providing blockchain services online work on the wallet’s security features and to deploy them to protect your cryptocurrencies. In the past there has been several security breaches and the crypto wallets failed to secure the digital assets which is why it is now high time to strengthen the wallet’s security features.
Concept of a cryptocurrency wallet and how it functions –
As depicted by a blockchain Development Company in Kolkata, a cryptocurrency wallet works the same way as a bank account and contains a pair of public and private cryptographic keys. Both keys perform different ways, like a public key allows other wallets to make payment to your wallet and the private keys allow spending or payment using your wallet address.
A cryptocurrency wallet is basically an application that allows the crypto users to store and transact their digital assets securely. It allows for instant transactions such as withdrawals and deposits which can be done without any hassle. The interesting thing about the wallet is that you can check your crypto balance to know how much cryptocurrency the wallet contains. Blockchain services online are designed to develop a wallet helping you store the currencies and buy or sell them at any point in time.
Here are some simple steps suggested by the blockchain experts of a blockchain development company in India to secure your cryptocurrency wallet –
• Using a cold wallet
Compared to hot wallets which work with online connectivity, cold wallets work offline and does not require to be connected to the internet. This is the reason why cold wallets are less prone to cyberattacks or hacks. Your cryptos can be secured easily in the cold wallet simply by storing your private keys and is hack proof as a cold wallet comes encrypted which helps in making the keys secure. For not being connected to the internet the security of your assets is not compromised and the wallet stores the user’s address and the private key only work with compatible computer software.
• Prevent mobile phishing
The cryptocurrency holders have been found to manage their cryptocurrency wallet by installing a mobile app in their phones. The apps used for managing the wallet can make your currencies vulnerable and the hackers can easily steal your money simply by hacking the login credentials. The attacks can be done anytime and from any location using a mobile device, text messages, social media platforms and even the emails as well. Installing antivirus on your mobile devices may not aid much, so it is important to keep a tab on any phishing activity on the mobile devices.
• Wallet backup
According to a blockchain development company in Kolkata, backing up your crypto wallet at regular intervals can protect from all kinds of cyber threats and can even help in the recovery of the wallet if your mobile or computer is hacked. Some wallets are known to have hidden private keys and with only backing up the private keys for the Bitcoin addresses might not help in recovering the currencies. The wallet backups are needed to be encrypted as the computers are connected to the internet making it vulnerable to malicious attacks, so encryption is a must. Backing up the wallets on a regular basis and changing the address of the currencies can help a lot in securing your cryptocurrencies.
• Change wallet passwords
When talking about setting a wallet password, having a strong password can be helpful. It has been observed that the wallet owners use the same password in almost all of their devices and the social media accounts and this can make the cryptos vulnerable. Make sure to have a strong alphanumeric password and add characters to make it invincible. Make sure to change the passwords on a regular basis and make use of separate passwords in case you are using multiple wallets. Addition of 2FA or two-factor authentication to the wallets can be an added security as well.
• Avoid using services of wallet hosting service providers
Cryptocurrencies can be stored in the wallets using the services of wallet hosting service providers hosting services on your laptops or computers. Wallets hosted by the service providers are less secure and can be a bad choice as you are unknowingly providing them access to your private key to be used on their servers giving you less control over your wallet. The private keys are at risk from the end of the hosting service provider and any changes made later in the infrastructure may compromise the security of the digital assets. Using a USB-based hardware wallet can be a good idea which encrypts and stores the private key along with other information.
The blockchain services online and the cryptocurrencies are still at an evolving state which is why it is very essential to responsibly protect the digital assets by securing the wallets by following the safety protocols.
As depicted by a blockchain Development Company in Kolkata, a cryptocurrency wallet works the same way as a bank account and contains a pair of public and private cryptographic keys. Both keys perform different ways, like a public key allows other wallets to make payment to your wallet and the private keys allow spending or payment using your wallet address.
A cryptocurrency wallet is basically an application that allows the crypto users to store and transact their digital assets securely. It allows for instant transactions such as withdrawals and deposits which can be done without any hassle. The interesting thing about the wallet is that you can check your crypto balance to know how much cryptocurrency the wallet contains. Blockchain services online are designed to develop a wallet helping you store the currencies and buy or sell them at any point in time.
Here are some simple steps suggested by the blockchain experts of a blockchain development company in India to secure your cryptocurrency wallet –
• Using a cold wallet
Compared to hot wallets which work with online connectivity, cold wallets work offline and does not require to be connected to the internet. This is the reason why cold wallets are less prone to cyberattacks or hacks. Your cryptos can be secured easily in the cold wallet simply by storing your private keys and is hack proof as a cold wallet comes encrypted which helps in making the keys secure. For not being connected to the internet the security of your assets is not compromised and the wallet stores the user’s address and the private key only work with compatible computer software.
• Prevent mobile phishing
The cryptocurrency holders have been found to manage their cryptocurrency wallet by installing a mobile app in their phones. The apps used for managing the wallet can make your currencies vulnerable and the hackers can easily steal your money simply by hacking the login credentials. The attacks can be done anytime and from any location using a mobile device, text messages, social media platforms and even the emails as well. Installing antivirus on your mobile devices may not aid much, so it is important to keep a tab on any phishing activity on the mobile devices.
• Wallet backup
According to a blockchain development company in Kolkata, backing up your crypto wallet at regular intervals can protect from all kinds of cyber threats and can even help in the recovery of the wallet if your mobile or computer is hacked. Some wallets are known to have hidden private keys and with only backing up the private keys for the Bitcoin addresses might not help in recovering the currencies. The wallet backups are needed to be encrypted as the computers are connected to the internet making it vulnerable to malicious attacks, so encryption is a must. Backing up the wallets on a regular basis and changing the address of the currencies can help a lot in securing your cryptocurrencies.
• Change wallet passwords
When talking about setting a wallet password, having a strong password can be helpful. It has been observed that the wallet owners use the same password in almost all of their devices and the social media accounts and this can make the cryptos vulnerable. Make sure to have a strong alphanumeric password and add characters to make it invincible. Make sure to change the passwords on a regular basis and make use of separate passwords in case you are using multiple wallets. Addition of 2FA or two-factor authentication to the wallets can be an added security as well.
• Avoid using services of wallet hosting service providers
Cryptocurrencies can be stored in the wallets using the services of wallet hosting service providers hosting services on your laptops or computers. Wallets hosted by the service providers are less secure and can be a bad choice as you are unknowingly providing them access to your private key to be used on their servers giving you less control over your wallet. The private keys are at risk from the end of the hosting service provider and any changes made later in the infrastructure may compromise the security of the digital assets. Using a USB-based hardware wallet can be a good idea which encrypts and stores the private key along with other information.
The blockchain services online and the cryptocurrencies are still at an evolving state which is why it is very essential to responsibly protect the digital assets by securing the wallets by following the safety protocols.
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