As society develops, people gradually tend to store money in cryptocurrency wallets instead of storing it in banks or storing cash. As proof of that, apps like Shopee, Lazada, or Zalo… have been formed to make direct payment more convenient when purchasing or making transactions. Cryptocurrency wallets are quite popular. But many people do not know how to use it and how it works. In the article, Yenmachvang introduces you to the most detailed to have an accurate view of Secure Cryptocurrency Wallet.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a software that allows users to store cryptocurrencies and retrieve their digital assets. It can send and receive cryptocurrencies like Bitcoin, etc. and remember all your transactions.
Understandably, you will need a wallet containing all the money to avoid loss and be convenient for spending. The cryptocurrency wallet is like that but it will be more useful. Because when the transaction is large, it will be inconvenient if you have to carry a bag of money.
How do cryptocurrency wallets work?
Cryptocurrency wallets will be protected by a private key, also known as a private key. This is a long hexadecimal code that links from your device to your crypto wallet, and in order to use the funds in the wallet, the code must match the public key or public key. The wallet is like your online bank account, blockchain is like a bank ledger, you can know your balance and transactions with specific dates and times.
Different cryptocurrency wallets
1. Hot wallets vs cold wallets
Hot wallets store your funds online and connect to the internet, while cold wallets do the opposite. Of these two wallets, cold wallets will have better security, less risk because they are offline. But hot wallets are used more because it is faster and more convenient to transact.
2. Online wallets
Online wallets are operated through an internet connection. This wallet is recommended for use with small transactions because it is not very secure. Scientific technology develops, there are many people known as hackers who may be able to infiltrate your device and the risk will definitely happen now.
- Convenient transaction
- Automated transactions
- No cost to buy a physical vehicle
- Less safe
- Account locked when uninstalling software or losing device
- vulnerable to hacker attacks and stay connected
3. Mobile wallets
Like Zalopay, Mobile Wallet can make transactions with just a few quick and convenient operations. Along with that is certainly through the internet but it is better secured because at least it is attached to a single device. That helps keep confidential information more secure and avoid hackers breaking in with your private key.
Today, stores are very up-to-date with the trends, always paying attention to the customer’s experience.
- Easy transaction and shopping payment
- Safer than online wallets
- The money in your wallet is always under control
- Risks due to trading on wifi
- Private key also show as online wallet
- Cannot use the wallet permanently due to loss or damage of the phone
4. Desktop wallets
A desktop wallet is a piece of software specialized for home use. It won’t be as convenient as a mobile wallet that can transact whenever you want. And most of all, you have to go home to be able to make transactions. However, a desktop wallet is quite safe because it is left at home, which will avoid the risk of being stolen than a mobile wallet. But there are protection features like encryption that make it safer to use, for example, a VPN.
- Works well as a cold wallet.
- Good data storage information and safe
- Good transaction like a cold wallet
- Internet connection so there will be risk
- Inconvenient for not transacting when outside
5. Paper wallets
Of the wallets mentioned, paper wallets are the safest crypto wallets. Because it is not through an internet connection, hackers will not attack the device to steal your information.
However, there are some limitations when using paper wallets. For example, you carefully store the paper wallet in a safe place but haven’t used it for a long time and you forget where you put the paper wallet.
- Good data security
- Others send you money quickly and conveniently
- The safest
- Free of charge
- Unable to recover keys from wallet when lost or damaged
- Difficult to send money
- requires you to create a new wallet every time you send money
6. Hardware wallets
This is the last type of wallet introduced in a secure crypto wallet. And hardware wallet is the most perfect option with the least risk. Hardware wallets very well secure your information and certainly not expose on the internet.
In particular, the hardware wallet has accessibility features for enhanced security with a sequence of 20 keywords in case you forget your pin code.
- Store multiple cryptocurrencies
- Superior to ink and paper in resistance to the elements
- Give accessibility while keeping others away
- Relatively expensive
- The risk of buying counterfeit goods increases
- Small and easy to lose
How to secure a crypto wallet
Store most of your crypto cold
As is known, an offline wallet is the safest crypto wallet because it does not go through the internet. You can store a lot of money in offline wallets, and transfer money online when you need to transact.
Regularly update software
A cryptocurrency wallet is software that stores money to make transactions. The software you use should always be updated regularly to avoid errors. Hackers can take advantage of bugs in old software to attack your device. So, regularly update the software whenever so that your information and data are safest.
Use 2FA and multisig
Cryptocurrency wallets are so important that 2-factor authentication (2FA) is a must before accessing it. Nowadays, to meet the safety of cryptocurrency wallet users, people have established multi-sig transactions. Therefore, you need to remember and create a strong password so that no one can guess to make your account secure.
Protect your devices and email
When using a cryptocurrency wallet, anyone wants absolute safety and security. Because it affects your digital currency. Offline wallets are considered safe, but what if your computer is compromised. So you need to protect your device and email, prevent hackers. Avoid messages with links sent by strangers because when you click on them, they can easily break into your device.
In this article, Yenmachvang has introduced you to secure cryptocurrency wallets. Each type of cryptocurrency wallet has its own outstanding features and limitations. You can choose and trust one of the above e-wallets. Hope it can help you more conveniently with transactions and money storage.