1 What does a bitcoin wallet need to be rated as ‘good’?
Choosing which cryptocurrency wallet to use for the first time can be a difficult task, especially if you know little or nothing about how crypto assets work. However, before you embark on your search for the perfect wallet for you, it is important to take into consideration 10 key aspects to consider.
1. How is your Bitcoin wallet secured?
The level of security that the wallet has is one of its main characteristics to know if it is appropriate for you to use it or not. That is, it is a point that cannot be taken lightly. For example, if it is a central walletIt is important to know the security protocols used and the company to keep your cryptocurrency balance under guard. If a company doesn’t use strong enough escrow systems, it could get hacked.
On the other hand, it is also important to know if the platform has specialized functions to enhance the security of your keys on the user side. For example, the mandatory use of the double factor to access your portfolio balance is a tool that can provide greater protection for your assets.
In the case of vulnerabilities, such as hardware wallets or desktop applications, It is necessary when creating a wallet to create an initial statement from scratch Offline online. If, for some reason, your seed is exposed to third parties in the process of compiling or creating the wallet, the security of your entire capital will be exposed and a third party will have full access to your funds. Be careful with these details!
2. How easy is it to use your cryptocurrency wallet?
If you are a newcomer to cryptocurrencies, one of the features that you should have in your first wallet is ease of use. An easy to use interface can make all the difference when it comes to sending bitcoins, since not understanding the functions and not paying enough attention can go wrong and lose our money forever.
When we choose our portfolio, it is important to analyze the design of the application to see if we know how to use it. Likewise, it is important to know how much money they can work with, since there are some companies that only allow partial withdrawals which is a characteristic that has to be taken into account for the business.
Another element that needs to be taken into consideration is whether these services have custody. For someone who is starting to take their first steps in the cryptocurrency market, it may be easier to have a third party help them manage their bitcoins. However, if you want to have more independence and financial freedomYou may need to learn how to use non-custodial services that allow you to protect yourself from oversight and to have full control over your capital..
3. Is it a multi-signature wallet?
If you are interested in using cryptocurrency to manage the finances of a family or company, you will probably need a multi-signature wallet. This option, in short, allows the user to enter more than one password into their wallet when approving a transaction.
In this way, it is more complicated for a third person to gain access to the wallet funds without the prior consent of all the owners. Multiple passwords that the wallet will contain can be stored on different devices or places in order to increase its security. So this feature is widely used when it comes to protecting cryptocurrency funds from hackers or malicious users.
4. How many functions does your bitcoin wallet hold?
When looking for a cryptocurrency wallet, another feature to consider is that The platform must contain multiple additional services.
Although it is not a mandatory component, it makes it easy for the user to access services such as cryptocurrency exchange, private transactions or purchase of assets from a bank account; without having to leave the platform.
5. Are you the only one who will manage the private key of your wallet?
Its private key is one of the most important elements of a cryptocurrency wallet’s security. It is the cryptographic code that allows the user to sign all the financial transactions that he performs. This is the element that gives you control over your money.
The private key is generated when a wallet is created, and in some cases, only the user has access to it. These types of wallets, which give complete control of the wallet to its owner, are known as non-wallet applications. The name is due to the fact that no company or person, not even the developers of the application, have access to the wallet.
Being the only person who has access to your money gives you the responsibility to be the one who takes care of your savings, as well as the right to be the only one making decisions about your money. In other words, it turns your wallet into a form of money storage that resists censorship and theft.
6. Is it a hierarchical deterministic portfolio (HD)?
When you start using a wallet, don’t forget to check if it’s a hierarchical deterministic wallet, or its acronym HD wallet. This name can intimidate novice users, so what you need to know is that these words indicate that your wallet is more secure and private than others.
HD wallets are those that can contain different addresses and keys, without having to deal with multiple passwords or keys. By creating a gateway or recovery phrase, the user will have at their disposal a master key that will allow them to sign different addresses each time they perform a transaction.
What is the purpose of this? Well, in order not to show all the history of your transactions on the network and make it available to anyone. When you have a wallet, it is created with a public key and a private one. A public key is the key that lets you know that you signed a series of transactions, so it serves as a record for you and third parties of all the movements you’ve made with your money.
As you can see, it is an element that strengthens transparency. However, it can become a major inconvenience if you are looking for a more private financial alternative. In case you are one of this group of people, HD wallets allow you to continue to profit from Bitcoin without being too easy to keep track of your entire transaction history, as you will have multiple addresses on hand from a single wallet.
7. Does the cryptocurrency wallet have customer support?
If you are taking your first steps in the cryptocurrency market and still do not fully understand how to use the wallet, customer support will be your best ally. We recommend that you check portals and social networks to see how good customer service is for the apps you’re interested in using, especially to see how quickly they respond if you have a problem.
This is even more important when we work with money, moreover, in a volatile market such as the cryptocurrency market. When the price of an asset fluctuates in a matter of minutes, it is imperative that companies settle without delay to resolve any possibility.
8. Does the wallet have backup copies?
Cryptocurrency wallets, after all, are apps that give us access to our money. As a result, it is important that these devices have the ability to make backup copies with which to access funds in cryptocurrency, even if your computer is damaged or you lose your cell phone where you downloaded the application.
One point to note is that copies should be automatically encrypted by the application. Also, the recovery process should not be difficult, the fewer steps, the better. For example, with an initial statement, we can re-download the application on another device and import the wallet using recovery words.
9. Is it a trustworthy bitcoin wallet?
The principle of the cryptocurrency ecosystem is: “Verify, do not trust.” And while this tip can get you out of a lot of trouble, the truth is that somehow we always put our trust in things. The strategy is to inform ourselves and test and compare to make sure we put our faith in something good.
For this reason, if you want to start using a particular wallet, We recommend that you browse various blogs or Internet forums to find opinions of experts in the field or users. At CriptoNoticias we have several articles where we test the cryptocurrency tools most requested by the Spanish speaking audience so that you already have a day on how they work before you start using them.
10. What operating system is your wallet compatible with?
In a market as broad as that of cryptocurrency wallets, there are applications that adapt to the needs of each user, and this is the case of operating systems. Not all applications are available for any type of computer or mobile phone, so you will have to look for those wallets that offer support for your smart devices.
Generally, this information is available on wallet websites, where you can check if the wallet of your choice can be used on your computer without having to run into a scam or malicious link. In this sense, we recommend that you always download your wallets from the official portals of the company, since there are hackers on the Internet who upload their malicious applications to online stores.