5 Tips to Choosing a Bitcoin Virtual Wallet
If you are a big Bitcoin investor or a fanatic user of the pioneer cryptocurrency, Bitcoin, you must have come across stories related to the currency. Perhaps you have even been part of the number of Bitcoin users and investors who have lost their hard-earned virtual currency to hackers, scammers, or wrong addresses.
Believe it or not, approximately $15 billion worth of Bitcoins have been stolen by hackers from different avenues since the inception of the number one cryptocurrency, making the subject of finding the most secure interface for storing Bitcoins a crucial one in the Bitcoin community. Below are five pointers to landing a good Bitcoin virtual wallet.
Establish the period within which the wallet has been operational
Scrutinizing the span within which a given Bitcoin wallet has been operational is guarantee to evaluating its performance. You will come across different views by incumbent users regarding their experiences of the wallet on forums such as Reddit, learn of the manufacturer’s reputation including the speed at which they respond to inquiries, and much more.
Opt for wallets that store your private key offline
Offline storages means that your private keys are rendered inaccessible to workers which consequently makes it impractical for the security of your Bitcoin to be compromised. All hardware and paper wallets fall under the category of cold storages with the former being a darling to many users. Different hardware wallets are detailed with different capabilities including prices as outlined in this list of best Bitcoin hardware wallet. A good hardware wallet bears robust security measures, is inconspicuous, and doesn’t render your coins lost upon landing on the hands of third parties.
Top-tier authentication protocols are mandatory
Atop robust security measures installed within a Bitcoin wallet should be a rigorous authentication process. A multi-signature authentication process is an example of a high-end authentification measure that requires one to go through more than one verification stage; this means that if you opted for an online storage, it will require the authority of more than one person for the user’s funds held in the exchange to be spent.
On a different note, some desktop and hardware wallets require more than one authentication phases for one to access his or her Bitcoins among other virtual currencies.
There should be a seamless backup plan in the event that you lose your wallet
Since every item is not immutable to lose, or even theft in the case of a hardware wallet, a good Bitcoin wallet should be structured to provide a seamless backup plan in the event of loss or theft. This means that as the owner, you will never be worried of losing your virtual currencies despite the platforms holding them getting into the hands of third parties.
A wallet that stores various altcoins apart from Bitcoin is a huge cost saver
Finally, since they volatile cryptocurrency environment calls for diversification, it is wise that you opt for a wallet that not only stores Bitcoin but also other cryptocurrencies you might want to invest. For example, Ledger Nano S, Trezor, and Keepkey are hardware wallets that support more than one cryptocurrency.