List of Wallet Protocols You Must Have - Espay Exchange

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Introduction

• 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 dont 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.

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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.

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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

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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.
• Multi-Signature Multi-signature wallets works
  like a dual access wallet. It cannot be operated
  with a single sign. It needs two or more
  signature to initiate a transaction. Here the
  keys are distributed. It creates an extra
  security layer to protect your funds. Instead of
  using a single signature wallet, you can choose a
  multi-signature wallet to make sure nobody can
  infiltrate the Wallet.

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Crucial Crypto Wallet Protocols

• Cold Wallet Cold Storage is one of the best
  security protocols. Instead of keeping most of
  your crypto in a hot wallet, you can store it in
  a cold wallet. Cold wallets are not connected to
  the internet. These are offline wallets. Paper
  wallets and hardware wallets are cold wallets.
  Because it is stored in a physical form, there
  are fewer security risks like viruses, malware,
  and remote access. Traders save most of their
  funds, i.e., approximately 80 in a cold wallet.
  It ensures 100 safety.
• Warm Wallet Most of the people use the warm
  Wallet to store their crypto because it is a
  perfect blend of a cold and hot wallet. Here,
  unlike a cold wallet, you can directly make any
  transactions by confirming the transactions
  manually. This Wallet has enhanced security,
  unlike hot wallets. It is often protected by 2FA
  or multi-signature protocol. With this Wallet,
  you can easily send or receive money without
  worrying about any security risks. Most people
  save up to 15 of their funds in a warm wallet to
  keep it secure and ready to use.
• Hot Wallet A hot wallet is used for day to day
  crypto transactions. The keys of this Wallet are
  directly connected to the internet, which makes
  it quite vulnerable. But it is essential to store
  your funds in a hot wallet if you dont send and
  receive crypto quickly. Most of the software
  wallets you use our hot Wallet. Just because it
  is more vulnerable doesnt mean your funds will
  be hacked. You can keep your Wallet safe by
  taking measures like choosing a strong password,
  keeping your device secure, and keeping your keys
  safe. Most people store 5 of their funds in a
  hot wallet, which helps them to transact with one
  another immediately.

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Crucial Crypto Wallet Protocols

• 3FA Earlier, there was only a 2-factor
  authentication protocol to keep the crypto safe.
  But now, you can use the 3-factor authentication
  process to enhance your wallet security. In
  three-factor authentication, there are three
  layers of added security to protect your crypto
  wallet.
• First Layer The first layer consists of a
  regular password to access the Wallet.
• Second Layer The second layer includes something
  that only the user can access like, fingerprint
  or OTP.
• Third Layer In the third layer, the users
  physical trait is used as an additional
  requirement like retina scan, authentication
  code, voice recognition, password, or OTP.
• You have to go through their different
  authentication process to access the Wallet. For
  example, first, you need to enter your password,
  then use your fingerprint and then use the OTP
  received on your phone.
• Web Wallet Most of the people storing their
  funds with exchanges use this type of Wallet.
  These wallets are pretty risky as the central
  wallet provider can control the wallet
  transactions. You can access these wallets
  directly from the web without downloading the
  app. To enhance this Wallets security, you can
  use strong passwords and make sure the browser
  does not copy the keys. Also, make sure the
  interface is isolated.
• Security Apart from all these protocols, you
  also need to make sure the Wallet provides
  additional security. Choose reputed wallets only.
  Check for security protocols before signing up.
  Check locks like SSL security marks to avoid
  scams like phishing. Use a strong password and
  protected devices to access your Wallet.

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Crucial Crypto Wallet Protocols

• KYC/ AML Make sure the wallet provider follows
  the proper KYC/AML process. Before you sign up
  with a wallet, you have to go through the KYC/AML
  process. Here your identity information is taken
  and screened. It is done to make sure that you
  are not a hacker or criminal. Nowadays, there is
  an e-KYC and AML process to check your identity.
  Your data is run through the government database
  to make sure you are a regular citizen and not a
  threat to the wallet security.
• These are the wallet protocols you must have in
  order to protect your funds from internal and
  external threats. You can also use decentralized
  exchange platforms developed by White Label
  Crypto Exchange Software Development Company for
  additional security.

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