Do you know where traders and investors store their cryptocurrency? They store it in a digital wallet, which is popularly known as a crypto wallet. If you want to trade crypto, you need to own a crypto wallet.
There are three critical components of trading in a crypto market, i.e., Cryptocurrency, Exchange, and Wallet. As we store our fiat currency in our wallets or bank accounts, similar cryptocurrencies are stored in a crypto wallet. Because the currencies don’t have a physical existence, they are not physically stored in a wallet. Instead, you get a set of private and public keys that help you to transfer cryptocurrencies from one Wallet to another.
There are different types of wallets where you can store your crypto. At the same time, some wallets are connected to the internet; some works offline. But most of these wallets are vulnerable.
Recently, there have been many cases where investors lost their crypto holdings because of vulnerabilities in the wallet protocol and exchange software. As all your currencies are stored in a wallet that is connected to the internet, there are many risks. To avoid this, you can use White Label Exchange Software and Secure Crypto Wallets.
If you want to keep your Wallet and currencies safe, follow our guide. In this post, we will discuss about the wallet protocols you must have to keep your cryptocurrencies safe.
Crypto Wallet
It is a digital wallet where you can store your cryptocurrencies. You can use this Wallet to send and receive crypto. There are different types of wallets. Some wallets support only a single currency, while others can be used for multiple currencies. A wallet can be a physical device or a software program. It stores your secret keys, which are used to make transactions. Wallets are mostly developed by the Crypto Exchange Development Company. These companies develop exchanges as well as wallets.
Types of Crypto Wallets
Here are the different types of crypto wallets.
- Desktop Wallet: These wallets can only be downloaded and used on desktop or laptop. Once you download it on your computer, you can only access it from there.
- Mobile Wallet: You can use this Wallet from your mobile phone. You can download it on your smartphone and access your Wallet from your phone.
- Web Wallet: These wallets are directly connected to the internet. The Wallet provided can control your wallet functions. For example, when you store your crypto with centralized exchanges. While trading with the White Label Crypto Exchange, you can use any type of Wallet.
- Paper Wallet: Here, you can print your private and public keys on a paper and keep it with you.
- Hardware Wallet: It is a device that stores your private and public keys. It is very safe and secure.
Crypto Wallet Risks
Funds are always stolen from places where it stored. And because you store your crypto in your Wallet, hackers will always try to find vulnerabilities. Once they find it, all your funds will be gone. Crypto wallets have always been prone to security risks. Here are the different types of security concerns related to the crypto wallet.
- Malware
- Phishing
- Virus
- Key Logger
- Remote access to device
Crucial Crypto Wallet Protocols
Here is a list of essential wallet protocols you must have to keep your crypto funds safe from hackers. You can easily avoid all the security risks by ensuring that your Wallet has all the below-mentioned security protocols.
