How to Choose the Best Bitcoin Wallet?
Choosing Your Bitcoin Wallet
Bitcoin has experienced a major surge in recent weeks, and this is expected to continue well into the future. As this happens, it will create unsolicited interest from malicious hackers. To avoid another tragic loss of bitcoin, investors are increasingly looking to bitcoin wallets. Here is how to make that choice.
Reputability of the Wallet
Even before looking into its price or features, reputability should be one of the most important considerations. You can do that by joining forums that talk about bitcoin. That way, you can gauge how much trust people have in the wallet. If there is no information on it, you can pose a question, and you might get an answer.
Ensure the Wallet Is Secure
If you are going to use a web wallet, the website you use should use the HTTPS secure protocol. If it uses HTTP, you should get out of there as fast as possible; the site itself might put your computer at risk. When thinking about security, you also need to consider two-factor authentication. Otherwise, someone might just hack your account, and you may never know about it.
Besides that, check the wallets logins and ensure they are secure and robust. These are just some of the security considerations that you need to think about when making your final choice.
Private Key Status
If you are going to use a bitcoin wallet, it must give you full control of your private key. Technically, if you do not hold the private key, the bitcoin belongs to the one who does have it. A good wallet should give you access to this key. With the private key, you can move bitcoin at will.
The Multisig Option
A good wallet should come with a multi-signature (multisig) option. This is an industry-proven method that is used to keep hackers out of wallets. A Multisig, in its simplest terms, means a transaction requires the approval of several parties. While a hacker may be able to acquire your approval details, it is unlikely that he or she will spend time looking for all the others.
It Should be Transparent
If you are not tech savvy, it will be important for you to follow forums that discuss bitcoin wallets. That way, you will get to understand how transparent the wallet is. This transparency helps wallet users understand how the provider secures their bitcoins. For instance, they should be open about how often they update the source code. Besides that, they should make their code available to the public so that it can be scrutinized for leaks.
The Level of Anonymity
One of the reasons people use bitcoin is because it offers them anonymity. A good bitcoin wallet should require the least possible amount of registration data from you. If a wallet asks for too much information, it might just be trying to harvest as much data from you as possible.
These are just some of the basics you need in a good Bitcoin wallet. Do you think a Bitcoin wallet is necessary? Do you believe Bitcoin exchanges are a secure place to store your Bitcoin? Leave us your thoughts below.