With the rise in cryptocurrencies, many people are interested in investing in them. There are many online trading platforms where you can trade in different cryptocurrencies. However, in order to make transactions on these trading platforms, you need to provide your public key (wallet address) to the person who wants to transfer funds to you.
What is a Wallet Address?
A wallet address is like an ID that stores your public and private keys. When you need to transfer funds from one account to another, the person will ask for your public key by providing which you can access to your wallet. The public key looks something like this: 0xB4112bf7f6d33971423a45b92F895c4AC56Fe7ff.
It is not always safe to share your wallet address!
Just like an email address, the wallet address can be leaked and misused by hackers if you do not take the necessary precautions. Even though developing a strong password for your cryptocurrency wallet is a good practice, you should not store all your funds in one wallet as they can be hacked. You need to divide it into two or more wallets which will require separate passwords to access them.
In this way, if one of your wallets gets hacked by some malicious program, the hacker would only be able to access that specific wallet and will not be able to access the other wallets. This is the safest way of storing cryptocurrencies in more than one wallet.
Some online transactions can allow you to use multiple wallet addresses when making a transaction, but some don’t. It may take a little extra time and effort in this case if you want to split your funds into more than one wallet. But it is well worth the effort and extra time to keep your funds safe and sound even while trading on the BitQL website!
How to Choose a Crypto Wallet?
Choosing a cryptocurrency wallet is a simple process if you follow these steps:
- Decide what type of cryptocurrency you would like to invest in and start purchasing them from an online trading platform.
- You will need to create separate wallets for different coins since storing all your funds in one wallet can result in your coins getting lost if you lose your password or if someone hacks into it.
- A good practice is to divide the funds you invest equally among crypto wallets for better safety.
- Write down all your wallet addresses and store them in a safe place that only you will know about because this information shouldn’t be shared with anyone.
- Use different passwords for your wallets and save them in a safe place so that you can access them when needed without any hassle.
- You can also invest in hardware crypto wallets like Trezor and Ledger Nano S and divide the funds into two or more parts, which will be stored in different compartments of your hardware cryptocurrency.
So, if someone hacks into one of the compartments then they cannot access the other compartments!
In this way, you will be safe from cyber-attacks and hackers even when buying and selling cryptocurrencies on online trading platforms or when withdrawing them to your private wallets.
Final Thoughts
Although cryptocurrencies are gaining popularity as a digital medium to invest and purchase goods and services, there is still much confusion regarding how anonymous or safe they can be. However, users should keep in mind that the more security measures they take while investing in them, the safer their transactions will be, and eventually cryptocurrencies will become even more popular than ever!
Crypto Wallet image by James on Flickr.