Anyone who plans to use cryptocurrency for whatever reason will need a cryptocurrency wallet. A crypto wallet is a virtual wallet that will allow its owner to store, send and receive cryptocurrencies such as Bitcoin, Ethereum and Litecoin. A wallet will put the user in total control and is a necessity for anyone who wishes to utilise the advantages cryptos provide.
It’s crucial to understand that cyber crooks are active in the cryptocurrency world, and they often use wallets to steal funds and information. They do this by creating wallets which are effectively malware, so before deciding on a wallet, check what people are saying about the provider and do proper research. It is always sound advice to use a reputable and experienced provider such as Luno, whose Bitcoin wallet is renowned worldwide.
Once you’ve decided on the wallet which is right for your circumstances, you should head to their website, and on arrival, there should be a little green lock displayed next to the URL. This icon indicates the connection is secure and that you’re in the right place. From here you need to search out the option to create a new wallet. A strong password is required. Make it as long and complicated as possible, and then make a note of it somewhere safe, as without it you may lose access to your wallet forever.
When the wallet has been created, you will need to download the Keystore file. The Keystore file will allow you as a user to decrypt your wallet, so the file must always be kept safe and secure. It could be advantageous to store the Keystore file on a USB stick and then keep it somewhere where nobody else will be able to gain access to it, apart from yourself. Remember, while keeping passwords and Keystore files secure is crucial, you can’t afford to forget where they’re saved or lose access to them.
After the Keystore file is downloaded and hidden away, the same must be done for the private key too. It’s another vital part of the system, so ensure it’s kept safe and ideally away from the password and Keystore file. Always remember never to share these things with anyone, even friends and family, especially if you have a large amount of cryptocurrency stored away.
Once all the above is complete, your wallet will be set up and ready to use as and when required. There’s another crucial step you can take when it comes to keeping your funds secure and is two-factor authentication. Two-factor authentication is available from your wallet provider, and it adds an extra layer of security when logging in by requesting another piece of information to complete the process, often something which will be stored in your head, rather than on a USB stick or piece of paper.
In conclusion, having a wallet to keep your Bitcoin and other cryptos safe and secure is essential, but so is choosing the right provider. Always check reviews and opinions on respected forums, and when setting up your wallet, keep passwords, files and keys as secure as humanly possible.