How to Secure Your Savings
Updated: Jul 12
A Guide to Crypto Wallet Security
In recent years, cryptocurrencies have gained immense popularity as an investment option. Their decentralized nature and potential for high returns have attracted many individuals to participate in this exciting digital economy. However, as the value of cryptocurrencies continues to rise, it becomes increasingly crucial to prioritize the security of your crypto savings.
Therefore, the purpose of this guide today is to empower you, the reader, with the knowledge and tools necessary to strengthen the security of your crypto wallet. By reading the important steps outlined in this article, you can ensure that your digital assets remain safe, at least, from potential threats, such as hacking attempts and unauthorized access. In fact, you could even try our alternative wallet, Nativ, which offers unprecedented speed, easy UI, and convenient in-app staking while maintaining the high-security standard for your private key. Before we’ll get into that, let’s get to know the types of crypto wallets and how to set up and secure them first.
Different types of crypto wallets and their features
When it comes to storing your cryptocurrencies, you have different options to choose from. Two common types of wallets are hardware wallets (Cold wallet) and software wallets (Hot wallet), each offering distinct features and levels of security.
Hardware wallets (Cold wallet): Enhanced security through offline storage
Hardware wallets provide an added layer of security by keeping your private keys offline. These physical devices mostly resemble USB drives and are designed to store your cryptocurrencies in an offline environment, away from potential online threats. By isolating your private keys from internet-connected devices, hardware wallets offer robust protection against hacking attempts.
Software wallets (Hot wallet): Convenient accessibility with varying security levels
Software wallets, on the other hand, are applications or programs that can be installed on your computer or smartphone. They offer convenient access to your cryptocurrencies, allowing you to manage your digital assets with ease. However, the security of software wallets varies depending on factors such as the provider's reputation, encryption measures, and your device's vulnerability to malware or hacking.
Choosing the right wallet for secure storage
When selecting a wallet for your crypto savings, it's essential to consider several factors. First, evaluate the security features offered by the wallet, such as multi-factor authentication or even MPC, encryption, and recovery options. Additionally, it’s important to consider the user experience and compatibility with your preferred cryptocurrencies.
It is also crucial to research and assesses wallet providers thoroughly. Look into their track records, user reviews, and any reported security incidents. Opt for wallets that have a proven reputation for prioritizing security, verified technology such as MPC in Nativ wallet, and have a robust track record of protecting user funds.
A step-by-step guide to secure wallet app setup for savings
To begin securing your typical crypto wallet, follow these steps for a secure wallet app setup:
1. Downloading the official wallet app from a trusted source
Always download the wallet app from the official website or trusted sources (Play Store/App Store). Be cautious of third-party platforms, as they might distribute compromised versions of the app.
2. Creating a strong and unique password
Apart from writing down the generated private key, creating a strong and unique password (if any) for your wallet during the setup process is also important. A strong password includes a combination of uppercase and lowercase letters, numbers, and special characters. Avoid using easily guessable information, such as your name or birthdate, and refrain from reusing passwords across different platforms.
3. Enabling two-factor authentication (2FA) for added protection
Enable two-factor authentication (2FA) whenever possible. This additional layer of security requires you to provide a second verification code, usually generated by an authentication app or sent to your mobile device, to access your wallet. 2FA significantly enhances the security of your wallet, as it adds an extra step for anyone attempting unauthorized access.
4. Safely storing and backing up wallet recovery phrases or private keys
During the wallet setup process, you'll be provided with recovery phrases or private keys. These are essential for restoring your wallet or accessing your funds in case of loss or device failure. Safely store and back up these recovery phrases or private keys in multiple secure locations. Additionally, for extra security, it is widely advised to use offline wallet methods.
5. Nativ wallet: Combined solution between accessibility and security
With Nativ wallet, this complicated process of self-custody is cut out completely. What you only need to remember is just the 6-digit pin to log in, and you are free to dive into the cryptocurrency world. This is made possible because Nativ utilizes cutting-edge MPC technology to keep and split your crypto private keys between parties. Rest assured that your funds are 24/7 safe since neither Nativ nor other MPC parties can steal your funds without your 6-digit consent. In other words, part of the private keys ‘always’ remains with you, encrypted in the form of a 6-digit pin code.
In the ever-evolving landscape of cryptocurrency, securing your savings has become paramount. This guide has provided valuable insights into the different types of wallets available, highlighting their features and levels of security. By choosing the right wallet, conducting thorough research, and following the step-by-step guide, you can significantly enhance the security of your crypto assets. Remember, as the cryptocurrency market continues to grow, so does the need for enhanced security measures. Therefore, Be informed and always implement the best practices outlined in this guide.
For those seeking a combined solution of accessibility and security, the Nativ wallet presents an intriguing option. With its utilization of cutting-edge MPC technology, Nativ ensures that your funds are protected by splitting your private keys between parties. The requirement of a 6-digit pin code (part of a private key) from the user adds an additional layer of encryption, keeping your funds safe from unauthorized access at almost the same level as storing in cold wallets. Try it out now at https://nativpay.com/