Chapter 20: Safety, Convenience and Wallets
Nowadays, it is hard to know where to start when choosing the right crypto wallet for yourself. There is so much info and noise, that it’s difficult to filter out what’s true and what’s not. Luckily, the Crypto Fundamentals series is meant to guide you at the beginning of your crypto journey, so we’ll be covering what your options are in this article.
With more than 80 million blockchain wallet users worldwide, it’s not surprising that hackers are increasingly targeting crypto assets.
In fact, according to the 2022 Crypto Crime Report from Chainanalysis, in 2021 the number of stolen cryptocurrency funds went up to a whopping $14.08 billion compared to the $7.8 billion recorded in 2020.
These numbers alone would be enough to give sleepless nights to any investor. If you add to this the more tangible threats like throwing away by mistake a Bitcoin wallet stored on an old hard drive, or having your crypto wallet and backup destroyed by fire, things get even scarier.
There are ways though, to easily protect your cryptocurrency assets, and avoid these things happening to you. Let’s see how.
‘Safety first’ is the rule of thumb
1. Use a strong password or PIN
Hackers use many different methods to get users’ accounts and passwords including dictionaries, lists of most used passwords, and brute force attacks.
To effectively protect your wallet, ensure that your password or PIN code is unique, complex (including uppercase and lowercase letters, numeric digits, and non-alphanumeric characters), at least 12 characters long, and difficult to guess.
2. Only connect to the internet through secure networks
You have no idea how many times people access their online banking account or crypto wallet using an unsecured connection without even a second thought: connecting to the train’s Wi-Fi public network, to a coffee shop’s hot spot, or at the airport.
A public internet connection makes your phone visible to any device using that specific network, therefore it’s definitely a no-go if you want to keep your funds safe. The same goes for using public devices to access your wallet (e.g., a public computer at an internet cafe) as passwords are kept in the device’s memory even after deletion.
3. Consider the type of wallet that best suits your needs
If you’re the type of person who loses their stuff, don’t use a hardware wallet. Although they are considered one of the most secure, losing a hardware wallet is like losing your actual wallet — the chances of getting it back are close to zero. Even though online wallets are susceptible to hackers, real-world items are just as likely to be stolen.
The same goes for using a mobile device as a cold wallet. You can factory reset a phone and use it exclusively as a wallet. This method, although safe in a technological sense, it makes your wallet just as susceptible to stealing, hazards, and malfunction.
Desktop wallets are also a no-go, as they seem to be the most susceptible to cyber-attacks.
For the best real-life protection as well as cyber protection, choosing an exchange platform that offers a secure wallet solution is your best bet to be safe.
A good mobile wallet has advanced security protocols put in place, such as anti-phishing codes and two-factor authentication
The good news is that IXFI provides a modern, advanced and secure wallet that you don’t have to worry about losing. The only thing you have to remember is that you also play a part in your wallet’s security.
It is all about holding your personal information safe and not making it accessible to anyone.
The main rule in blockchain and cryptocurrency always was and always will remain to keep your sensitive information to yourself.
Every user needs to understand that with the excellent security that blockchain offers, it comes with great responsibility to manage your wallet safely and use it wisely. Always be wary of scams that try to get your personal information in order to steal your funds.
Besides safety, accessibility and ease of use are also worthy to look for in a wallet.
Two more important aspects:
Some wallets are designed to hold only one cryptocurrency. They are usually developed by the same team behind that specific coin.
Of course, there are wallets that can hold more cryptocurrencies and those are the ones to aim for. On Your Friendly Crypto Exchange, there are hundreds of coins and pairs to choose from when deciding what trades to make, so scarcity is not an issue.
Mobile wallets bring their own advantages to the table:
- Ease of use
There is always a compromise people think they have to make between balancing security, usability, design, compatibility, and mobility. There is no compromise to be made when choosing to trade with IXFI. Register now and start your journey together with Your Friendly Crypto Exchange.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.