3 Things to Keep in Mind When Choosing a Crypto Wallet

Interested in working on a cryptocurrency market? Make sure you pick a right crypto wallet to ensure your assets are safe.

Photo: Brook Ward / Flickr

Photo: Brook Ward / Flickr

A crypto wallet is a necessary instrument for all those using a cryptocurrency. To pick a right wallet one doesn’t need any special skills – just a general knowledge of how cryptocurrencies work will be quite enough. Here are a few important things to keep in mind.

1. Find Out How Cryptocurrencies Work

Today service providers do their best to make their platforms as user-friendly as possible to ensure that anyone could easily register, send and receive digital money. Therefore, one doesn’t need to have a previous experience in working with crypto wallets.

The only thing that one should understand is how cryptocurrencies work: what happens with the assets when they are transferred, how they are stored and how they get accessed. These are the general principles of how cryptocurrencies work and knowing them will help choose a correct crypto wallet, because there are many types of them catering to different needs of a client.

If you’ve never worked with a cryptocurrency before, study the topic first and talk with those who have experience on the market. This will help you pick a right wallet that will meet your requirements.

2. Study the Service Thoroughly

Be attentive when examining potential platforms for your assets. Assess the accessibility of the platform. As any other financial service, it has to work without any interruptions and problems.

Check reviews online. If there is a lot of negative feedback, don’t disregard it. Reviews regarding any problems or interruptions should raise suspicion. It would be incorrect to ignore such information or try to attribute such feedback to the work of the service’s competitors.

Study the information about the platform and check whether it has the latest safety control system. It should have two-factor authentication – just sms authentication is no longer reliable.

Assess the work of the support service. In case any problems emerge, you should have a channel of communication with a technical support team that must respond in time.

Check the commission rates to understand what kind of sums would be pointless to transfer through the system.

Don’t ignore any of these steps. It’s better to examine how the system works before starting to work in it, rather than do it when you face real problems.

3. Be Careful

Always be careful working on the crypto market. Of course, transparency is its significant advantage, but at the same time it’s also an opportunity for different scammers to make a profit on new users’ trust.

Don’t forget to use every security option offered by the service. Save your mnemonic phrase in a safe place. Either print it out and delete from a computer or, if you save it on a computer, use special programs for password storage, like KeePass. The best option, however, would be to use a separate laptop operating on Linux for working with cryptocurrencies.

Akke Svenson

Akke Svenson is a founder of  cryptocurrency wallet Rahakott.io and also an entrepreneur, an IT specialist, a blockchain enthusiast. Graduated from the Royal Institute of Technology in Sweden and Stanford University in the US. He began his career at Ericsson, then worked on developing services for financial companies in Europe. For a few years he served as CTO at a Silicon Valley fintech startup. After that, he returned to Sweden and founded his own company, specializing in IT consulting. He became interested in blockchain in 2013, believing that modern technology will help build new economic relationships in the world.

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