These precautions for ensuring the security of encrypted assets through the wallet, you need to understand (www.blockcast.cc)

If something happens when your wallet is stolen, lost or forgotten your password, there is no other place for you to ask for help, which is why it is important to take all necessary measures to ensure security.

Original title: “Depth丨How to ensure the security of encrypted assets through wallets? 》
Written by: Octavian Contis
Translation: Olivia

After I understand all the encryption terms, another problem I encountered in the encryption field is how to ensure security. There are different aspects related to the security of cryptocurrencies that can be discussed, but today I will focus on the existing wallet types, their security levels and how to store your coins safely.

But before we dig into the details, let us think about why security is important on the blockchain and why we need to care about security issues.

Why do we need to pay attention to security issues?

Blockchain is actually a technology that removes the middleman and then directly conducts peer-to-peer transactions, and also provides an agreement that entities can fully trust without knowing the other party. This means that you will benefit from a fast and secure agreement to facilitate transactions between you and the other party, without relying on intermediaries such as banks, Paypal, etc. At the same time, this also means that if your wallet is stolen, lost or forgotten your password, there is no other place for you to ask for help, because all the responsibilities are in your own hands, this is Why it is important to take all necessary measures to ensure safety.

Two-step verification

Although this is not a wallet, I chose to talk about it here because it adds an extra layer of security to your exchange trading account. So far, I have not encountered any exchange that does not have the additional layer of security of 2FA.

Two-step verification, also known as 2FA, two-step verification or TFA (as an acronym), is an additional layer of security. Not only does it require a password and a username, but it also needs something that is unique to the user, that is, information that only they should know or get immediately—such as a physical token. This is very useful to ensure the safety of your account and funds, so please do not use your trading account without 2FA.

I personally recommend using Google’s 2FA, which can be found in the Android and Apple stores. You can use the 2FA security layer on any other account that supports this feature, such as Facebook, Github, etc.

Software wallet

When it comes to software wallets, there are many options to choose from. Although I haven’t tried all the existing wallets, I will introduce some of them that have established their own names and I have used software wallets.

• Jaxx is a multi-currency Ether, Ether Classic, Dash, DAO, Litecoin, REP, Zcash, Rootstock, Bitcion wallet and user interface. Jaxx is designed to provide customers with a smooth Bitcoin and Ethereum experience. It can be used on various platforms and devices (Windows, Linux, Chrome, Firefox, OSX, Android phones and tablets, iOS phones and tablets), and connects to websites through Firefox and Chrome extensions. Jaxx allows in-wallet conversion between Bitcion, Ether and DAO tokens through Shapeshift, as well as importing Ethereum paper wallets. Jaxx has a series of functions and is constantly integrating new currencies. For those who need a multi-currency wallet, Jaxx is a good choice.
• Exodus is a relatively new and unknown digital wallet, currently only available on the desktop. It realizes the storage and transactions of Bitcoin, Ether, Litecoins, Dogecoins and Dash through a very simple, easy-to-use, intuitive and beautiful interface. Exodus also provides a very simple guide to back up your wallet. One of the great advantages of Exodus is that it has a built-in deformed exchange that allows users to exchange altcoins for Bitcoin without leaving the wallet, and vice versa.
• Copay, developed by Bitpay, proved to be one of the best digital wallets on the market. If you are looking for a convenient and fast digital wallet, then Copay can make it easy for users to access desktop, mobile or online through a user-friendly interface. In fact, the best thing about Copay is that it is a multi-signature wallet, so friends or business partners can share funds. In general, Copay has something for everyone. For entry-level users, it is simple enough, but there are many additional geek features, and it will impress more experienced players.
• Coinbase is a web-based online wallet and a beginner-friendly version of GDAX. Users who use Coinbase can easily transfer their funds to GDAX without charging any fees. In the same interface, you can make quick purchases with fiat currency. In short, it is a great tool and it provides all the necessary tools to enter cryptocurrency. The disadvantage of this service is that it is expensive and the available currencies are limited (Bitcoin, BitcoinCash, Ethereum, Litecoin).

Hardware wallet

Hardware wallets are slightly different from software wallets because they store the user’s private key on a hardware device such as USB. Although the hardware wallet conducts transactions online, its private key is stored offline, which provides higher security.

Depending on your choice, hardware wallets can also be compatible with software wallets, allowing users to access the wallet from a web interface, making transactions seem easy.

Users only need to plug the hardware wallet into a computer or device that can be connected to the Internet and use the pins to transfer money more securely. Here is an inventory of the three trusted hard wallets that have been on the market for a long time.

• Trezor is one of the pioneers in the hardware wallet industry and has established the gold standard for cryptographic security. Trezor is known for providing top-notch security to prevent virtual and physical theft. Trezor’s lack of style can be made up for in terms of safety. Even if your computer is invaded by malware, with Trezor, your private keys will be safe. In this sense, Trezor is more like a vault than a wallet.
• Keepkey is produced by a relatively new company, which provides beautifully designed hardware wallets. There is not much difference between Keepkey and Trezor. In fact, KeepKey is a port of Trezor’s code and firmware. However, the design of the two devices is different. KeepKey feels like a “premium” wallet, but it may be a bit heavier and therefore easier to drop. It comes with a standard, easy-to-use client UI.
• Nano Ledger is my personal favorite because it can be combined with other software wallets (such as Copay mentioned above) or wallet iterface (such as MEW). Using the most advanced security element technology, Nano is like a mini computer that can generate your encrypted transactions offline, which means that hackers will never be able to destroy your hard-earned cryptocurrency. Another additional benefit of Nano Ledger S is that it uses FIDO authentication software, allowing you to set up two-factor authentication on your hardware wallet—an additional layer of defense. Because it is smaller than KeepKey, it is easier to carry. It is a very competitive hardware wallet.

Paper wallet

Paper wallets are another form of storing your encrypted currency by printing your private key on paper. The main advantages of paper wallets include: protection from malware and key loggers; no need to rely on the security of any website; protection of private keys through 100% ownership.

But conversely, the security of physical documents cannot be guaranteed. All the information needed to spend Bitcoin is on a piece of paper, so it should be very safe. If the paper wallet is lost, the bitcoins sent to that address will not be available.

Which one should we choose?

There is no doubt that there are many options listed here. Blockchain and the entire encryption field are constantly evolving, and even more solutions will appear to help us ensure the security of revenue.

Remember, no matter which wallet you use, losing your private key will result in the loss of your money. Similarly, if your wallet is hacked or you send money to a scammer, there is no way to retrieve the lost currency or reverse the transaction. You must take precautions and always be vigilant:

• Backup your wallet
• Update your software
• Add an extra layer of security
• Keep your private key safe!

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