A cryptocurrency wallet is a software program, a device or a physical medium that stores both public keys and private keys that can be used to send, receive and keep track of all your transactions of cryptocurrencies.
There is a popular misconception that cryptocurrencies are stored in the digital wallet just like the real wallet, but it is not the case. The digital currency wallets actually save a different pair of public and private keys which enables you to access your digital currency.
One can use public keys to receive payments from other’s wallets and private keys to make cryptocurrency payments to other wallets. After every successful transaction, complete details of the transactions are stored in the blockchain ledger. It will be a shared ledger where both parties can track the details.
The most critical parameter of any cryptocurrency wallet is digital security features. Every day more and more people are starting to invest in cryptocurrency, so there is a huge market for cryptocurrency wallet development. Blockchain App Factory is one of the leading cryptocurrency and wallet development companies.
Before you finalize the wallet, you need to know what types of wallets are available at your disposal.
There are different types of wallets in the market and each wallet has varying degrees of security.
Types of Cryptocurrency Wallet:
- Hot Storage (Software Wallet)
The Software Wallets are further classified into Web, Desktop and Mobile Wallet.
- Cold Storage ( Hardware & Paper Wallet)
All digital wallets are prone to cyber-attacks, there is no standardized approach to that problem. But, one can always keep their cryptocurrency secure by taking precautionary measures while handling the wallet. Here are the tips to keep your cryptocurrency wallets safe & secure from cyber theft.
1. Stay Cyber-safe:
Securing your software wallet is similar to protecting your computer data. You need to put your mind before you click on any link, email attachments and granting access to your information.
2. Using High-security password:
Setting a high-security password is a basic thing, but it is a vital one. A strong password with a combination of Capital letters, numbers, symbols, etc., will set a strong barrier against robbing your cryptocurrency. And, keep changing the password once in a while.
3. Backup Your Wallet:
Always have a backup storage option to secure your wallet keys. Take a complete backup and store your information in cold storage like pen drive, CD, Hard Disk and paper. Always keep your backup up to date.
4. Use Updated Software:
Always keep your system and software updated with the latest security enhancements. Make sure you update both the system and wallet regularly.
5. Use Cold Storage:
Keeping all the information in hardware and paper wallets is considered more safe and secure than an online storage medium. As this way of storage is not connected with the internet, hacking is highly difficult.
Just like securing your wealth, it is imperative to keep your digital currency safe by all possible effective means. As more and more people joined the cryptocurrency world, there is a rising demand for secure and user-friendly cryptocurrency wallets. If you are ready to invest in providing cryptocurrency wallet service, you can be the market leader in this business. Blockchain App Factory is a cryptocurrency wallet development service provider who can help you launch your own cryptocurrency wallet. Cryptocurrency wallet holds a lot of importance in any digital currency transaction, being an early adopter you can make a lot out of it.