When you think of the concept of a secure crypto wallet,’ what comes to mind? The biggest threat to your digital asset is mainly through cryptocurrency wallets. Which is why it’s critical to choose a highly secure crypto wallet to store your digital currencies – and to have peace of mind.
Can your crypto wallet be hacked?
A crypto wallet not only stores your digital coins, but it holds a private key. This private key is your digital identity to the cryptocurrency market, and anyone who gets hold of this key can hack into your wallet and steal your funds. So it is vital to secure your wallet and take precautions to keep your private keys away from cybercriminals.
What is the most secure crypto wallet?
Cold wallets are probably the most secure crypto wallets because they keep your private keys oﬄine, unlike hot wallets. Cold wallets (or hardware wallets) also come encrypted, keeping your keys safe.
A Japan-based cryptocurrency exchange lost $32 million to hackers from its hot wallet in 2019. The attackers took away the cryptocurrencies that were held in the firm’s hot wallets. However, the cold wallet and cash holdings were not aﬀected by the incident.
The following are some of the most secure crypto wallets in the market today:
Trezor is a compact mobile wallet that comes with a secure payment interface. To access your funds, you must connect the USB cable to your computer or phone and input the pin.
The seed phrase is generated using randomness from your movements, so even if you lose this device, your coins are safe because Trezor creates a 24-word seed while setting up the device. The codes can be re-generated anytime in the event of loss or damage to your assigned Trezor device. There’s an option to choose between the more aﬀordable Trezor One and Trezor Model T.
Ledger is a French business that makes security hardware for cryptocurrencies, including Bitcoin, Litecoin, and Ethereum. Since 2014, Ledger has been developing the most secure hardware wallets with the highest security standards. The Ledger Nano X, for example, protects your wallet from attacks with a dedicated chip similar to those found in credit cards and passports.
The Ledger Nano X wallet connects to a computer or mobile device via USB. When you plug in a ledger, you have to access the Ledger Wallet App on the specific device you are connecting to. From there, you will be shown options to set up a new wallet or access an existing one.
Secure Hot Wallets
Hot wallets (or software wallets) are connected to the internet via computer, phone, or tablet. They’re very convenient to use, but they lack enough security to protect you from hacking or theft. They’re the most preferred for storing small amounts of cryptocurrency.
However, a few hot wallets come with robust security safeguards and features to protect your digital assets. Some of the most secure online wallets include:
1. Coinbase Wallet
Coinbase Wallet is probably the most secure Bitcoin wallet with a five-star reputation. It boasts of having maximum security features such as multi-sig vault storage, which requires multiple people to enter their keys to access funds in the wallet. The wallet’s highly intuitive interface and best-in-class security features make it the best option for beginners with little to no experience in crypto.
It is also backed by a reputable exchange, so you can worryless about losing your funds.
Users have complete control over their crypto assets thanks to the wallet’s non-custodial nature; there’s no need to be concerned about funds being locked or the Coinbase website being hacked.
2. Blockchain.com wallet
Blockhain.com is another secure wallet for storing your digital assets. It comes with cold wallet storage that enables you to keep a large portion of your funds oﬄine and only uses the hot wallet for day-to-day transactions. It has two-factor authentication and gives you the ability to note down your recovery phrase – though the company stores the keys on their servers. The wallet also allows trading cryptos in the wallet itself – making it highly convenient for buying, selling, and converting cryptocurrency. Blockchain.com wallet is available on both Android & iOS.
3. Mycelium wallet
Mycelium is one of the most secure and convenient wallets available. This wallet works on both iOS and Android, making it simple to manage your cryptos from anywhere.
Mycelium also provides a great backup solution through its 12-word backup phrase, which you can use to restore your wallet (cryptocurrencies) if anything happens to your phone or tablet.
The wallet has a feature known as “cold storage,” which allows users to securely store large quantities of currency on external drives. This function provides additional security for people who are concerned about leaving their money on an internet server.
4. Electrum wallet
Electrum is a safe Bitcoin wallet that allows you to easily set up a high level of protection for your cryptocurrencies. By default, your wallet is encrypted, which helps safeguard your money from hackers. For further security, Electrum also supports two-factor authentication and multi-signature capability.
How to secure your crypto wallet
- Use a cold wallet. It may not be very convenient to set up or use, but cold wallets are recognized as the most secure channel of storage when storing your cryptocurrency.
- Ensure your internet is secure. Use only secure internet when trading online. If possible, avoid public Wi-Fi networks or use a VPN for additional security.
- Keep your device secure. Make sure your mobile device or desktop/laptop is up to date with the latest anti-virus protection and security features.
- Change your password regularly. First oﬀ, use a strong password that is difficult to guess. Next, make it a habit to change your password on a regular basis. Also, opt for two-factor authentication (2FA) for an extra layer of security.
- Don’t get phished. Be careful while making crypto transactions and avoid any suspicious and unknown links.
Earn passive income in crypto
hi.com is known for rewarding users with HI for various activities such as answering trivial questions, referring friends to hi.com, holding crypto in their hi wallets, and so much more. It provides a digital banking system to buy, send and earn cryptocurrency and cash out every day. hi.com is safe and secure and can be accessed conveniently via Telegram, WhatsApp, or the web app.
In addition, hi allows members to earn or buy HI to access services and benefits such as yield farming, staking rewards, and more.
It is free to sign up at hi.com. All you have to do is to sign up with your mobile number and a complete quick KYC, and you’re good to go.