Understanding the Role of Desktop Wallets in Enhancing Security
As internet security continues to become an important factor in the purchase of goods and services online, including cryptocurrency purchases, what happens with the technology can have a huge effect on our financial security.
One of the best ways to keep your digital coins safe is to use a desktop wallet which is a software crypto-wallet that you can store on your computer.
This article will discuss some of the reasons why using desktop wallets can help users of cryptocurrencies when it comes to increasing their security.
The Basics of Desktop Wallets
Desktop wallets are a computer software, which you download and install on your personal computer. Unlike the online wallets, they are not dependent on third party servers as your private keys are stored directly in your machine. This setup avoids certain risks such as server hack attacks, which could leaked your personal date.
Key Security Features of Desktop Wallets
Another selling point of desktop wallets is security. Here are some of the key features that make them safe.
- Private Key Control: You have total control over your private keys with desktop holders, which means you will have access to your cryptocurrency without the risk of theft from external breaches.
- Stronger security protocols: Most desktop wallets recommend advanced security protocols – such as high-level encryption and multi-signature support – to make your assets harder to steal.
- Offline Storage: Since desktop wallets can operate offline, they are less likely than their online counterparts to succumb to online threats, such as hacking, or phishing attacks.
Comparing Desktop Wallets with Other Cryptocurrency Wallets
As a type of cryptocurrency wallet, a desktop wallet fits somewhere between the extremes of hard- and cold-storage wallets. Here’s how desktop wallets fare compared with other types.
- Online Wallets: Although online wallets can be more convenient for these transactions, they are more likely to be compromised as they will be stored on cloud servers.
Mobile Wallets: Mobile wallets are convenient for quick transactions but come with risks: if your phone is stolen or lost, the thief or pickpocket might also gain access to your money.
- Hardware Wallet: Your private keys are offline, stored in a hardware device like a key. That makes them extremely safe, but also expensive and more difficult to use than desktop wallets.
Best Practices for Securing Your Desktop Wallet
Maximising the security potential of desktop wallets involves following certain best practices:
- Regular Updates: Keep your software updated to protect against the latest threats and vulnerabilities.
- Have Strong Passwords: Use passwords based on long sentences and consider using ‘two-factor authentication’, in which you use a password with separate code that’s sent to your mobile phone.
- Be Wary of the Internet: Don’t download software from any old website, and use a separate computer for your finances if possible.
Back Up Your Wallet: Back up your wallet daily to offline backup media so that you’ll still have access to your assets if your computer breaks.
Conclusion
By adding the convenience of a desktop wallet to the robust security of offline storage, everyday cryptocurrency users can use this software to store their funds safely, while still having access to their coins most of the time. As technology continues to grow in complexity over the coming years, keeping up with what’s out there and staying aware of security issues will be as important to your digital assets as locking your front door is to keeping your house safe.
If you are a crypto trader, someone new to cryptocurrency or just thinking of getting a desktop wallet, perhaps it’s time you took a step forward in securing your crypto assets.
