Technology

What You Should Consider Before Selecting a Crypto Wallet

Crypto currencies have taken the world by storm, there is no doubt about it. While many governments and financial bodies criticize them due to lack of control and unpredictable nature, the fact remains. That they are here to stay. The last decade saw many people shifting to higher bandwidth internet connections such as Spectrum internet plans for cryptocurrency mining. After a small drop, the value has gone up again.

If you are a cryptocurrency user then make sure to use a good cryptocurrency wallet. These wallets allow users to exchange the currencies securely. Moreover, they also hold the private keys necessary for transactions. Read on below to understand how to choose a good wallet.

Company Reputation – Good or Not?

Check if the company has been around long enough and has credible leadership. Check their reviews to see if they manage data properly. You need to see if they’re insured or not and who holds the private keys for transactions? Furthermore, check if the software they’re using is recommended or not. With all these key considerations accounted for, the chances to fall prey to a poor crypto wallet are quite low. Always go with the company that has the best reviews.

Open Source Code or Not?

Keep in mind that open source wallets see a lot of improvement with the passage of time. This is because the code is available to third parties and they are able to point out any issues in no time. Most users prefer such wallets. Others that come with proprietary code do not allow any access to their code and are not trustworthy.

Most importantly, check if your private key will be with you or stored on the company’s server. It’s better that you have it in your own custody. Regardless, it is more important to check if they are using 2-factor authentication or not?

Do They Have Support for Multiple Cryptocurrencies?

You must check the types of cryptocurrencies that your wallet supports. Many wallets provide services for more than one type of cryptocurrency. On the other hand, some are good for only one type. Check which one suits you based on your market preferences.

Do They Allow Cryptocurrency Conversions?

A very useful feature in wallets is converting one type of cryptocurrency into another type. Make sure your wallet comes with this integration. It will easily allow you to shift to a currency that is doing well in the market from one that is not. See Exodus that uses ShapeShift to achieve this. This feature will allow you to maximize the value of your assets.

Can You Have Shared Accounts?

A MultiSig account is quite helpful. It will allow you to share your account with another person. In such a case, for any transaction, both parties will need to provide their signatures. The feature is ideal for business partners and family members. It also allows to set up multiple keys for one wallet. As a result, an account enjoys more security as well.

Does the Wallet Support Different Platforms?

A wallet must be able to allow you to access it across different types of platforms. Make sure to check the type of platforms the wallet complies with. This will allow you to easily access your wallet from any of them. Also, this will help to keep your assets more secure.

Does the Company Have Good Customer Service?

Make sure that the wallet you’re selecting comes with good customer service. Should anything go wrong they must be able to address your queries in no time. Especially, when the market value of a cryptocurrency rises or falls, they should be there to help you out. Even for TV services, such as Spectrum TV Packages, people want to see prompt responses. Then imagine the risk of putting all your assets in a wallet that has poor customer service. Never take services from a company that has bad customer service.

Can They Handle Liquidity Risk?

You must also consider cash flow liquidity risk when selecting a wallet. This may negatively impact your trading activities when trading activities are at their peak. Make sure that your wallet is stable enough to handle a large trading volume and provide you seamless services.

Take care of all the considerations above and you will be able to enjoy great ROI on your investments. Keep your private key secure, always check for 2-factor authentication, and customer reviews and you’re good to go!