How to protect your crypto wallet

Security is going to be the main feature of the blockchain technology. Blockchain is a distributed data storage software that makes impossible to lose information even if part of network is down. It also encrypts the data so that you are the only one with access to it. There is about blockchain technology in general. But there are some security points that should be outlined in different ways of holding cryptocurrency. 

Online services

The first rule is to be careful to different online services. Most of exchanges and online wallets do not provide enough insurance and security to be used to store money like a bank. They often suffer from hacker attacks. Accordingly, you might want to use other types of wallets. For example, hardware or software client-side wallets as Lumi. Otherwise, you should choose such services very carefully. However if you want to choose hosted wallets you are to mind safety and use additional security features as two-factor authentication (2FA).

Choose client-side wallet

Let’s speak about software client side wallets in details. Why is it more secure? It means that there are no processes connecting with your personal data happen online. Consequently, your funds are vulnerable to losses only if you don’t take care of your device (means don’t use password on your device, give to third parties or lose it).  

Backup

The second rule is about backup for your wallet. It can protect you against computer failures and many human mistakes. It allows you to recover your wallet after your mobile or computer was stolen if you have a wallet backup. For example, Lumi provides you with 12-words mnemonic phrase that is a key to your funds. With this phrase you can recover your wallet in Lumi or into another wallet.

Update in time

The third rule is to keep your wallet up to date. Updates include new useful security features and help to keep your wallet safe. Wallet teams always work hard for their clients.

Diversify your risks

As for general advice, it is better not to store all your funds in one exchange or in one hot wallet. Diversify your risks. Or choose cold wallets. Keep your phone safe and take care of your private key.


2 Comments

furtdso linopv · May 16, 2018 at 6:32 am

Virtually all of the things you mention happens to be supprisingly accurate and that makes me wonder why I had not looked at this in this light before. This article really did switch the light on for me personally as far as this specific topic goes. Nevertheless there is actually just one factor I am not necessarily too cozy with and while I attempt to reconcile that with the main theme of the point, let me see exactly what all the rest of the readers have to say.Well done.

    Donald Tsang · May 21, 2018 at 9:33 am

    Lumi team always ready to answer your questions or write useful and educational articles. We do our best to make everything clear.

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