The Cryptopay blog
The Cryptopay blog

6 Сrucial Features of a Secure Bitcoin Wallet

So, you’ve decided to purchase some bitcoins and probably already know you’ll need a secure bitcoin wallet to store funds. How to choose one?

It’s fairly hard to stop trying, mainly because each exchange or service use its own wallet solution, so the number of different wallets you can use grows dramatically. But in the meantime it’s wise to have a central management wallet that doesn’t heavily rely on exchange security. I bet you’ll even have at least three of them before make a conscious choice on one.

Below are six crucial features of a bitcoin wallet you should consider, if you care about your funds. So, what’s the truly secure bitcoin wallet like?

Free and Secure Bitcoin Deposits and Withdrawals

Before entrust your coins to a stranger on the Internet, make sure you’ll have full control over your funds. It means you will freely deposit and withdraw money.

Ponzi schemes
, for example, provide a free wallet and deposit for each user, but include a very complicated withdrawal process to decrease their number. Another issue that must not be taken lightly, it is limited or restricted access to the deposit. Reliable services has nothing to hide or fear about, so they provide 24/7 access to and full operational control over your funds. Remember though that it’s common practice to limit deposits and withdrawals by a few satoshi. For example, 0.0001 can be the lowest limit for new deposits.

Let the freedom of usage be the first thing you assess, when creating a wallet.

Instant Bitcoin Payments Processing

The wallet should be able to quickly process payments via bitcoins (or other currencies available). Look through the list of countries the wallet works with and learn about limitations it may have there.

The next thing to look for are testimonials on the independent media like Reddit, more precisely - average time frame for processing payments. Some exchanges and wallets process withdrawals in 24 hours, but don’t clearly state it on the web-page, so revealing it requires reading Service License Agreement or User Agreement. Combined with gradually increasing bitcoin transaction confirmation time, this can result in huge pain afterwards.

Transparent Fees

Look for services that clearly states about fees they’re charging for processing deposits, transfers and withdrawals. This is a common practice within the industry, so there is no reason why you should sign in for dodgy schemes. Lower fees alongside wallet deposits, withdrawals and bitcoin transfers will save you additional coins and therefore improve the way you trade or do shopping.

Honest and well-reputed resources have 100% transparency over their operational mechanisms, making you sleep well during the night time. This transparency goes wider: from the technical details of new features to the self-explaining marketing materials.

Bitcoin Debit Card Enabled

Look for wallets that go deeper and offer the variety of services. Bitcoin debit card, for instance, could further improve the way you spend money.

Imagine it’s Friday and you’re up for a couple of beers, but coins are all you have for spare money. The task could be successfully accomplished with plastic card, but will take some effort in the web: find a delivery, which accepts bitcoins is not easy. Debit card can also help you verify accounts and shop online without the need for a merchant to accept bitcoins.

Security as a Priority

Reliable services value user security over everything. Research more about the matter: where servers are hosted, what security those data centers use, what other measures company implements to protect your funds - those all are questions you should ask.

You may create a number of wallets during your experience with BTC, so make sure the most significant part of your savings is situated in the most secure wallet. By default, secure wallets:

Have two-factor authorization. User is asked to provide additional authorization attempt through SMS or designated authorization app, like Google Authenticator or Authy. The most widely used option is to use your email to verify access attempts and each transaction, but in the long run it can become dangerous, since your email account is still vulnerable.

Encourage strong password usage. Reliable bitcoin-affiliated services always warn you about using strong passwords (12-bit encryption, for example). The lack of these warnings can’t be considered as a flaw, but adds a few points to the bitcoin wallet security score.

Perform device authorization. Modern services are able to track the device and browser of the user to avoid unauthorized access to your money. Once someone tries to enter your account from the unknown device or browser, the system will abort the session and send a verification email to you. After you confirm the device, the system will remember it.

Compliant With Data Protection Acts

Although DPA (Data Protection Act) is a UK-term only, you can also check what data protection service provider uses currently. While the DPA compliance is a crucial requirement for UK-based business, not all the providers fit its terms or simply ignore it.

If you and the prospective provider live and operate somewhere else than UK, you should check your local data protection legislation and assess the compliance level the company provides.

Don’t Rush, Take Your Time

Points above will help you to quickly estimate online bitcoin wallet security. Don’t rush things up (while I’d bet you are eager to start!) and take time to summarize all the data on new provider. This will help you make the right choice from similarly look services.

Know more ways to ensure wallet provider reliability? Don’t hesitate to share them in the comment section below.

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