Custodial Wallet Security: Best Practices For Beginners In 2023
If you are a crypto beginner, it is very likely that your first crypto wallet is a custodial wallet, where you do not have control over the private keys.
Indeed, it is commonly said that “not your keys, not your crypto.” However, custodial wallets have their advantages, especially for beginners, since you don’t have to worry about managing and securing your private keys, which may be too complex for beginners.
Typically, custodial wallets are beginner-friendly, with less complex interfaces that allow you to learn the ropes before you get comfortable trying out advanced functions on non-custodial wallets. Custodial wallets give you a bit of room for error, as you don’t have to worry about losing or forgetting your private keys since you can always reset your simple login details, and you can reach out to customer support, which is impossible with non-custodial wallets.
It’s safe to say that the bulk of the work done in securing a custodial wallet lies with the custodian; however, you, as the wallet owner, also have some responsibilities to assist in securing your wallet, because the last thing you want is to have your wallet compromised and your assets stolen. With that in mind, we will take a closer look at the best contemporary security practices for custodial wallets.
Use Strong Passwords
Unlike Non-custodial wallets, which will require you to back up your seed phrase in a secure location, custodial wallets still allow you to log in with the regular “email and password” style. Hence, it is important that your wallet’s login and payment passwords are unique, strong, long and not easily breakable.
A strong password is a combination of uppercase and lowercase letters, numbers, and symbols; also, a strong password is void of progressing patterns like A, B, C,… 1,2,3… Also, ensure to use different passwords for different applications and safely write them down where nobody except you has access. Also, if possible, use different passwords for login and payments, so you can prevent unauthorized access to your wallet.
Use Two-Factor Authentication (2FA)
The password security tips above should make it nearly impossible for anyone to get into your account. However, in the slight chance that your account is compromised, you need to set up two-factor authentication (2FA) to add an extra layer of protection to your wallet.
This will require anyone trying to access your wallet to enter a unique code generated by an authentication app or an OTP sent to your registered mobile number. Hence, it strengthens the security of your wallet, and even if your password gets compromised, your wallet will remain safe.
Regularly Update Wallet Software
If you use a custodial wallet with a mobile app, one important thing you should always do is update the software version of the application. In addition to bug fixes that make the app function better, software updates fix vulnerabilities with security patches, making it harder for hackers to exploit them.
Beware of Phishing Scams
Phishing scams are the most common way hackers gain access to users’ credentials. It is typically done by sending you a fake link via SMS, email, or other digital means, and when you log in to the link, your credentials will be stolen. This is worse if you use a single password for several accounts, as they can access all your accounts, change the passwords within seconds, lock you out, and leave you scrambling.
To avoid being a victim of phishing scams, never click on any links from your email, SMS, Telegram, or other instant messaging apps. Ensure that you always type out the correct website you intend to visit by yourself, and if you erroneously visit a suspicious website, immediately exit and change the passwords used.
The Importance of Choosing a Reliable Custodial Wallet Provider
As mentioned earlier, most of the work to keep a custodial wallet secure is done by the service provider, so it should go without saying that it’s crucial to choose a reliable custodial wallet provider that has a proven track record of security and reliability.
Cwallet is a custodial wallet app that provides some of the best security features in the market. Cwallet integrates most of the security features mentioned above.
It allows you to create a flexible password and a 6-digit pin for transactions; it is further bolstered by two-factor authentication via Google Authenticator or SMS codes that prevent unwanted access from your account. Beyond all of these, Cwallet also has an auto-lock feature that enhances your wallet security by automatically locking the screen of your wallet after a set amount of time. This feature ensures that even if you forget to log out or leave your device unattended, no one else can access your wallet.
Cwallet’s KYC Verification Policy:
Cwallet does not require KYC verification, which means that your real identity is protected. KYC verification can sometimes be intrusive, requiring you to provide your real name, passport, or other national identity. However, Cwallet understands the importance of privacy and anonymity, so you don’t have to expose your real information while using the app.
In addition to these security features, Cwallet offers a user-friendly interface, supports 800+ cryptocurrencies, charges ZERO fees for transactions, and has an ever active customer support to address all concerns.
Conclusion
Custodial wallets are great for beginners as you have no responsibility to keep the private key safe. However, you need to practice the security measures mentioned above to keep your account from being compromised.
If you’re a beginner or pro user looking for a secure and user-friendly custodial wallet app to manage your crypto assets, Cwallet is an excellent choice. With its robust security features, support for multiple cryptocurrencies, competitive fees, and excellent customer support, Cwallet provides a seamless crypto management experience.
Download Cwallet NOW! and rest assured that your crypto assets are secure.
