Categories: Business

What Defines The Quality Of A Crypto Wallet?

Since 2021, thieves have gotten away with more than $1 billion worth of cryptocurrency. The M.O for most of these cases involved cybercriminals hacking into crypto wallets and stealing their contents.

Because cryptocurrencies are unregulated and decentralized, it is extremely difficult to track down the perpetrators of these heists. And in most cases, stolen crypto very rarely gets recovered. So, what can you do to protect yourself?

The answer is simple — store your cryptocurrencies on a quality crypto wallet, like the ones in this article on the safest crypto wallets by Tezro. Plus, we have shortlisted 10 things a good crypto wallet must-have. Let’s take a look.

IMAGE: UNSPLASH

4 Qualities Of A Good Crypto Wallet App

1. Good Security Features

Keeping your cryptos safe should always be your main priority. Besides providing you with peace of mind, solid security makes it more difficult for hackers to get their hands on your assets. Ideally, your crypto wallet should have the following:

Top-Tier Encryption

Any crypto wallet worth its salt should use the best encryption protocols to protect your private keys. Doing so reduces the chance of hackers gaining access to your private encryption keys and stealing your cryptocurrencies.

Ideally, your wallet should use AES-256 bit encryption which is currently the most robust protocol available.

Two-Factor Authentication

Wallets that use two-factor authentication or 2FA will send a message to your mobile device or email whenever it detects a login attempt. After that, you must input said PIN to complete the login process. This security measure helps prevent unauthorized access to your crypto wallet.

Besides that, 2FA alerts users whenever a login attempt has been made from a new/unknown I.P. address. So that way, you’re always in control of your wallet at all times.

Stores Private Keys Locally

While there has been continual debate over custodial vs. non-custodial wallets, the fact is that a non-custodial wallet is still the safer choice. A non-custodial wallet gives you complete control of your private keys, eliminating the need for a third-party, and reducing some of the risks of using a hot wallet.

Although non-custodial wallets are less convenient, they are well worth the additional security provided.

Automatic Logout

This feature ensures that you never stay logged in on your crypto wallet account after a certain period of time has passed with no activity, reducing the risk of unauthorized access.

2. Cold Wallet Compatibility

Storing your cryptos in a cold wallet is the most effective way to keep them safe, as hackers cannot access cryptos stored offline. This is why your hot wallet must have cold wallet compatibility for the easy transfer of assets.

3. User-Friendly User Interface

A good wallet should be easy to use with minimal complications. Given the previously niche nature of cryptos, developers would tend to design overly complicated wallets unsuitable for casual users.

So before making your choice, get a feel for a particular wallet to see if it works. Make sure you’re comfortable with the user interface and the feel of the wallet. If it doesn’t suit you, move on to the next one.

4. Backup Support

Having a backup system in place is one of the most essential characteristics of a crypto wallet. Whether it’s device malfunctions or system errors, the last thing you want is for your crypto assets to vanish without a trace suddenly.

Quality crypto wallets usually feature a backup system such as a seed phrase. These allow you to recreate your hot wallet on another device in case of a system failure. To sum up, crypto wallets are essential for those looking to tap into the digital currency sector. This is why you must select a crypto wallet that’s safe, secure, and workable for you.