Your MetaMask seed phrase acts as a password, login and proof of ownership all in one. Your information is not stored on any database and asset ownership is entirely in your hands; an important element of decentralisation. Security on the Coinbase wallet is consistent with the industry standard for non-custodial wallets, which means it does come with some counterparty risk. If convenience and easy access to your funds on Coinbase is important to you, then this exchange wallet has a lot to offer. The Coinbase Wallet can be downloaded as a mobile app or browser extension and features an easy-to-navigate UI consistent with the Coinbase exchange. The wallet is automatically configured to support many blockchains, including all EVM-compatible chains, Solana, Fantom Opera and more.
There have been many cases of malware disguised as wallets, so it is advisable to research carefully before deciding which one to use. Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications.
Custodial vs. noncustodial wallets
In general, desktop wallets can be considered more secure than most web versions. However, it is important to ensure that your computer is free of viruses and malware before setting up and using a cryptocurrency wallet. If you https://www.tokenexus.com/ don’t own your private keys, you’re entrusting a third party with your assets. To address this problem, many web wallets now allow you to manage your keys completely or through shared control as multi-signature wallets.
A good antivirus provides robust protection against crypto hacking and phishing attempts. These programs scan all web sites and links you attempt to visit and flag potential phishing attacks to safeguard your wallets. Use high quality
antivirus software like Kaspersky Premium and keep it updated to benefit from the latest protections.
Hot and cold crypto wallets
This is called a hot wallet because it’s online and connected to the internet. Think of the public key as something like your bank account number—you can share it with anybody, but it doesn’t provide access to your money. “These may be connected to the internet, again making them less secure.” Software wallets are simply desktop programs or browser extensions that make it easy for people to send, receive, and store crypto.
Once you’ve chosen a wallet, visit the wallet provider’s official website. This is important because there are fraudulent websites that look almost identical to the legitimate ones. If you decide to go with a crypto hardware wallet, you should also ensure that the wallet is sealed when it arrives and the packaging hasn’t been tampered with. Research different types of wallets and consider factors such as wallet security, compatibility, user experience, and community trust.
But You Said the Coins Aren’t Actually Stored in Crypto Wallets?
For example, Bitcoin wallets will ask you to generate and record a 12-word backup phrase that you can use to restore your wallet if you lose access. These can sometimes be a 24-word phrase, but the process will be similar with What is a Crypto Wallet all companies. Make sure you look into what you need to do with your particular software, so you’re ready to back it up when needed. For one, popular offerings from companies such as Ledger and Trezor can be quite expensive.
There are a number of things that you can do to protect yourself from the above threats. Firstly, you should always make sure your device is using the latest software. As hackers find new methods, they are able to override the inbuilt safety controls, so by updating your software, you will always have the highest level of security. “All you need to do is enter the recipient’s public address and the amount of cryptocurrency you want to transfer and confirm the transaction,” Leinweber says. Offline wallets from Exodus or MetaMask, both offline storage options, are examples of non-custodial options.