A crypto wallet gives you total custody of your money. You can keep your money in as long as you want without paying fees like you would do with a bank account.
The portfolio in your wallet can grow exponentially if your investment turns out to be successful. So it's very important to keep your portfolio safe and accessible anytime when you want to.
There have been many stories where some investors lost millions of dollars due to some mistakes that could have been prevented.
Your portfolio may only be worth a few dollars today but you never know one day you could be a millionaire! If that happens and I wish, your first instinct could be to access your money from your wallet.
Fortunately, it costs almost nothing to secure your wallet. These simple tips will be helpful in your crypto adventure!
Download the right wallet
It's a common mistake to see people download a wallet without double-checking the seller's information. There are some wallets that are already popular but few people could tell what companies made them. You could find out this info on the wallet's official website or by doing some Google searches.
Once you have more knowledge of your favorite wallet, double-check your findings with those in the App Store.
There are many fake wallets in the App Store that pretend to be the legit ones, The bad guys who made them could steal all your money whenever they want in the blank of the eye.
Back up your recovery phase
If you usually take screenshots of your Recovery Phrase when creating a new wallet you may not be alone. Most of us are so used to do everything with our devices that we totally forget the joy of writing things down by hand.
Only make sure to write down this important phrase on a piece of paper and delete that screenshot permanently from your phone. It's recommended to make multiple copies of that piece of paper and keep them in different locations.
If you want to keep some copies of your Recovery Phrase on the device, make sure is not connected to the internet. I often keep some of my Recovery Phrases in an external drive so that I make sure not to lose them.
Your Recovery Phrase is the only way to access your wallet if your device is damaged or gets lost. Treat it like you would do with some of your personal items such as passport, birth certificate, social security numbers, bank account numbers, and the like.
Add another layer of security to your wallet
Most wallets let you enable a password that will be required when you open it. When you install a wallet on a device, your device holds your private key (also called Recovery Phrase). Anyone opening the wallet on that device can sign a transaction from your wallet, meaning they can send your money to a different wallet.
They won't be able to access your wallet if you have a password enabled, even if they steal your device. It's also wise to set a password different from the one that unlocks your device. If your device has a fingerprint recognition feature, it will be even better to enable it.
You can always download a new wallet and access your money if you ever forget your password. You will need to enter your Recovery Phrase though.
Beware of Phishing
Wikipedia describes Phishing as a type of social engineering where an attacker sends a fraudulent message designed to trick a human victim into revealing sensitive information to the attacker or to deploy malicious software on the victim's infrastructure like ransomware.
Make sure you never give your Recovery Phrase or wallet password to random people on the internet. Most crypto users keep their portfolio on mobile App Wallet. Our phones are constantly connected to the internet, so they are more vulnerable to being compromised.
A good practice is to never click on suspicious links you may receive via email, or anywhere on the internet.
Oh! And also don't brag about your portfolio too much as that could attract bad guys.
Good luck investing!😊