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OVERVIEW SOFTWARE WALLET SECURITY TIPS

Cryptocurrency software wallets are one of your primary defenses against cryptocurrency theft so you will want to be sure that the wallet you are using gives you the best protection. These wallets are usually downloaded from wallet provider websites, or it may be hosted and used directly on their website. Cryptocurrency software wallets are typically free and are designed in three basic flavors. You can read about each kind here: “cryptocurrency Mobile wallet”, “cryptocurrency Web wallet”, and “cryptocurrency Desktop wallet”.

This page will describe specific cryptocurrency software wallet security tips.

Note that many other types of security tips listed in other areas of this website are also cryptocurrency software wallet security tips:

For this reason, most of these other security sections should also be read for a complete understand of cryptocurrency software wallet security.

This particular webpage does not address the security tips for these other types of cryptocurrency wallets: Exchange wallets, Hardware wallets nor Paper wallets. Security tips specifically for these types of wallets will be found here:

STANDARD SOFTWARE WALLET SECURITY TIPS

To protect your funds, follow these fairly standard software wallet security tips:

  1. WELL KNOWN: Only choose a wallet from a well-known wallet provider that has an extensive reputation and many positive reviews. You can find these types of reviews if you Google “software wallet reviews”.
  2. NEW VERSIONS: After download and installation, keep your wallet software up to date when new releases come out. Wallet software is updated to patch security holes as well as to add new features.
  3. OPEN SOURCE: Consider choosing a wallet which is Open Source code with “Deterministic” builds. This means that anyone can view and recreate the program from the original software source code to confirm there are no bugs or hacks. (Note that you as a user will not be expected to do this but you will be able to sleep at night knowing that others in the software world have been vigilant to do so.)
  4. EXIT WALLET: Exit your wallet program if you are not actively using it. Never stay logged into your wallet if you are going to walk away – even if only for a few minutes. Always log out.
  5. SCREEN LOCK: Set a screen lock timeout which will force you to re-enter your password if you have not used in your device in a certain number of minutes. I have mine set to 5 minutes.

ADVANCED SOFTWARE WALLET SECURITY TIPS

The following advanced software wallet security tips are for those who want additional security and are willing to put in extra effort to get it.  These tips may also address more rare, fringe issues.

  1. CHECK SIGNATURE: After the software is downloaded, check it’s signature to be sure it has not been tampered with. Checking software signatures is not straightforward so watch this in-depth video on how to check the software signature. This specifically applies to Desktop and Mobile wallets but can be done with many other types of software. Here is how you can check if your Exodus wallet software is authentic. This page also will give you a general idea of how to check the authenticity of any wallet.
  2. FULL NODES: Choose a software wallet that is a “Full Node” wallet. This means that the wallet stores a full copy of the blockchain history. Most Desktop wallets will only contain a partial copy, called “lite-node” or SPV node wallets. A full copy will make your transactions more secure and private since you do not have to trust a third party to verify your transactions nor fear that the third party might change your transaction. But a full copy of the blockchain is also a huge amount of data that you will have to store on your computer. Most casual users will probably not want a Full Node wallet.
  3. MULTI-SIG: Consider using a multi-sig capable wallet. “Multi-sig” means that two or more people have to authorize a transaction before they can be completed. This is inconvenient but could be worth it for larger holdings.

See all of our cryptocurrency security tips.

In the comments below, you can add your own tips, and/or correct or dispute our tips.

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