Want to Use Crypto? Here’s How to Practice Wallet Safety

Want to Use Crypto? Here’s How to Practice Wallet Safety

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These days, there is no shortage of people looking to enter the crypto space. And why not? Cryptos like Bitcoin have proven to be very solid investments over the years, even outperforming assets like gold in some cases. There is also the fact that there is so much that can be done with crypto. Several merchants now accept it as a means of payment for their goods and services.

But whatever you want to do with crypto, it is important that you practice good crypto wallet safety. Because crypto users are targeted by scammers and transactions done with crypto cannot be reversed, it is important that you take all the necessary precautions when using a wallet.

● Learn Your Wallet Types

Before you begin using crypto wallets, it is important that you understand the different types of wallets and their benefits. At its core, a crypto wallet is basically a combination of an address (i.e. the spot on the blockchain where the funds are stored) and the password to the address. As such, there are different ways to store this information.

There are paper wallets which essentially mean writing down this information on a piece of paper. A hot wallet is essentially a wallet provided by a third party that is connected to the internet e.g. as a browser extension or an app on your phone. Finally, there are cold wallets which are hardware devices that store this information and are only connected to the internet when in use.

Each of these wallet types has its upsides and downsides that you should consider. Paper wallets can get lost more easily than others but are basically free. Hot wallets are easier to access but can be hacked more easily. Cold wallets are the safest option but cost the most money. All these should be considered before you take the leap to use a crypto wallet.

You also need to consider what you plan to use the tokens for and which wallet option is most compatible with it. For example, you might want to gamble with crypto and as such, will need a wallet provider like Metamask that is accepted by your casino of choice. It would be best to then look into the wallet types your crypto casino allows for. If you want to gamble, there is even the option of an anonymous casino and these too have requirements of what wallets will be accepted. The last thing you want is to set up a wallet and not be able to spend your funds.

You might also find that different types of wallets suit different needs better. Whilst a hot wallet is convenient for spending online, as mentioned above, a cold wallet might be more practical for storing larger amounts of money that you don’t plan on spending.

● Find a Wallet Provider

Once you decide on what type of wallet you want to use, your next step should be to find a wallet provider. The good news is that there are several wallet providers in the market Metamask to help you meet your needs. Your best bet would be to visit individual wallet provider’s websites and read about the different types of wallets they offer.

Most likely, you should find something that is within your budget, is suited to your tastes, and much more. At the same time, you should feel free to ask questions if anything is unclear to you. Remember that you will be putting your money into this wallet so you need to have a clear idea of what you’re getting into. Read reviews of each wallet you are considering and keep the accounts of other crypto users in mind before you settle on one.

● Set Up Your Wallet

After you’ve decided on both your wallet type and wallet provider, you have to go through the process of setting up the wallet. This will usually involve creating your password and your recovery phrase as outlined by your provider.

It is very important that you follow all the instructions correctly to avoid losing funds or locking yourself out of your wallet. Most wallet providers will have written and video tutorials to guide you and it is best that you take advantage of them. Of course, if you have any questions or are confused, you should reach out to customer support. Always keep in mind that it is better to set up your crypto wallet slowly than poorly.

● Protect Your Details

A key part of crypto wallet management is keeping sensitive details like your password, recovery phrase, address, and account login details safe. If anyone gets a hold of them, they can access your wallet and drain your funds if they want, so you need to be safe.

Write down these details in a safe place and only give the information to someone who you trust with the funds in the wallet. This should be your biggest guiding principle when it comes to managing your wallet.

● Avoid Unnecessary Risks

Besides setting up your wallet, there are a few things to keep in mind to avoid losing your assets. First, as has been said multiple times in the industry, exchanges are not wallets so avoid leaving your tokens on an exchange. Also, when you’re using a hot wallet, avoid clicking on random links online, including those promising free digital assets as this may be a ploy to speak your funds. If you’re using a cold wallet, keep the physical wallet in a safe place where it cannot be damaged or stolen.

Conclusion

Having a crypto wallet is an important step in investing in and using crypto. However, it must be approached with care and adequate information. The steps above are some of the things you should do before and after creating a crypto wallet. They will make sure that your assets are as safe as possible and that you can access them whenever necessary.