Storing cryptocurrencies on the exchange is unreliable due to their frequent hacks and periodic inadequate actions of the exchange itself. Even the best cryptocurrency wallet can also be hacked, and in the worst case, the online wallet platform may simply not return cryptocurrency. Someone prefers “cold” storage on the hard disk or special devices, but such wallets can be cracked. There is no guarantee, but there are ways to minimize the possibility of hacking.
Protection of the best cryptocurrency wallet
The best protection of a cryptocurrency wallet is risk diversification. And let it sound a bit strange, but if the wallet itself can never be protected with a 100% guarantee, it means you need to diversify risks. And you can do this by working with different wallets – several services or online and offline wallets.
Other ways to protect your best cryptocurrency wallet:
- encryption. The harder the password, the harder it is to crack. To generate passwords, you can use special resources and change the password, say, once a week. The password in no case can not be recorded on a computer, but it does not guarantee against hacking. A virus that counts keystrokes is enough, and the wallet will be hacked;
- backup. Create a backup of your entire wallet on multiple computers. Some addresses used in transactions may be hidden, but have an important meaning. Therefore, we are talking about the full version of the wallet copy;
- multi-signature. Some online wallet services support transactions with two or more signatures. The address is signed by the public key. And if you need a sale of cryptocurrency, then the signature of several users is required. This is convenient in a business partnership or family environment. You can also make a second signature by creating a second participant in the system from another computer (mobile device).
Offline cryptocurrency storage is considered a more reliable way than trusting online services. But it slows down the speed of transactions, because the storage of cryptocurrencies on the hard drive is suitable for those who do not conduct regular trading. In this case, the primary task is to prevent viruses from entering. Use licensed programs, don’t go to dangerous sites and your best cryptocurrency wallet will remain intact.