The cryptocurrency industry is booming at rocket speed. Unlike fiat currency, cryptocurrency isn’t physical but a set of crypto keys that you need to keep confidential. Therefore you need to choose the right crypto wallet to store your crypto coins.
With the introduction of numerous crypto storage technologies, numerous giants operate in the crypto storage domain. These companies offer various features to keep your coins safe and access them. These wallets have safety features that keep your crypto keys discreet and avoid illegitimate access. As numerous crypto storage options are available in the market, it can be challenging to choose one with all the security features that fit your preferences. To help you choose a crypto wallet, here are five things you need to consider.
Hardware or Software Wallet
When you buy crypto assets, you receive a hash key that you must keep confidential. Various crypto storage options, such as hardware storage and software wallets, allow you to store your crypto assets safely. The software crypto wallets are apps that you can install on your computer or smartphone and access your crypto assets anywhere. Software wallets offer various security features to allow only legitimate access to the assets.
Many people often find online crypto wallets risky hence they prefer physical storage options like hardware wallets. Hardware storage solutions are the USB drive that you can connect to a system to access the codes. These USB drives have numerous features such as wired and wireless connections, LED screen displays, and long-lasting batteries; you can store various coins in them.
Many crypto buyers often underestimate an essential factor while choosing their storage option- its reputation. As the crypto industry is booming, the number of scammers and fraud are popping up daily. These fake companies often make fake claims to access your confidential crypto keys. That’s why it is essential to do a background check and know its reputation. When did the company start operating, who are the people in the top position, and do they have social media or public presence? If the company is recently started, has no public records of founders or top exes, and offers information about it on its website or official handles, they are more likely to be fake.
With the rising number of crypto scams, ensuring whether the crypto wallet has the necessary security features to keep your crypto assets safe is evident. Many scammers often pose as genuine owners and try to access your wallet. Many softwares offer common passwords that people use across the internet.
Crypto wallets should have security features to avoid identity theft and keep the coins intact. The software wallets offer 2-factor authentication to allow only legitimate access. It’s also essential to have the provisions to backup your account. Features like security questions or password recovery links are also an effective way to protect and backup your account.
It’s common for crypto investors and traders to convert their crypto assets from one coin to another. For example, if you have 20 ETH in your wallet and want to sell some of them and buy BTC from them. Without the necessary features, you would have to sell your ETH and purchase BTC. But during this entire process, the prices of the ETH might fluctuate, and you may not be able to get the same number of units you originally wanted. Thankfully many crypto wallets allow the user to convert the crypto from one coin to another from the wallet itself. There is no need to exit the app and manually sell off one coin and buy another. You can do it with just a few clicks through the integrated crypto conversion features in the wallet.
Multiple Coin Support
Diversifying your portfolio is the key to minimising the investment risk. Hence many crypto investors often diversify their crypto investments by purchasing different coins. That’s why the crypto wallet must support the storage of different crypto assets. Having all your crypto under one roof will make it easier to access them and keep them safe. It’s essential to check whether the provider supports different coins or not. Some crypto wallets are made for a specific cryptocurrency, while others only support currencies with higher acceptability. Before choosing any wallet, make sure it supports the storage of coins you plan to invest in or trade.
Many crypto buyers often underestimate the importance of secure storage and lose all their crypto assets. Therefore, you must check these factors before choosing a wallet to store your coins.