Security Aspects of a Bitcoin Wallet Reviewed by Security Experts
Transaction forgery, phone scams, brute force attacks, MITM attacks, mnemonics leakage, etc.
These are some of the terms we want to know about but never experience. All these cyber attacks are attempts to steal information, phish off money, and confidential data from an online source. One of these sources that these sort of attacks can be targeted is the bitcoin wallet or, in general, crypto wallets.
Where a secure bitcoin wallet is built and improved regularly to protect the user’s assets, we are here to tell what wallets are secure enough. The entire blockchain system is billed as being anonymous and working on the principles of transparency.
However, even the biggest of crypto wallets, Binance, was hacked, leading to a loss of 7000 bitcoin. So, what makes a crypto and bitcoin wallet secure? Let’s find out.
What Makes a Bitcoin Wallet Secure?
A bitcoin wallet needs to have the following security features for it to qualify as a secure wallet.
A secure bitcoin wallet must have a crucial password authentication system. Look for a wallet that secures your wallet with a hash function and allows for two-factor authentication.
When wallets miss out on password authentication systems and fail to implement measures like biometric verification, KYC, Keychain, or Keystore, they become vulnerable to brute force attacks.
In other words, it fails to establish order and control, and losing control is always a risky thing in cryptocurrency.
Several wallets store the bitcoin balance in the local storage. However, during development, the security aspects of the local storage devices may or may not be assessed.
This gives another loophole to the hackers, which they can easily exploit and access the private keys locally. Hence, any wallet that does not guarantee the protection of private keys and wallet data may not be a good choice.
Crypto wallets, including bitcoin, that register every session are more secure than the ones which do not. Session logging records and stores the login time, device, and IP address of the device using the wallet.
The session logging makes it easier to spot devices that are logging in or trying to do so from an unexpected location or IP address.
A secure bitcoin wallet will have the system to record and authenticate every transaction via sending an email to the registered email address. Plus, it should also allow setting a transaction limit, and any transaction above that limit will need authentication. This will help ensure that any user does not transfer bitcoin accidentally.
A secure bitcoin wallet has the best protective features shielding the user’s information, wallet balance, and passwords from any and all types of attacks. While protecting from attacks is necessary, a secure wallet will also integrate measures to keep track of all transactions and allow the users to set transaction limits and authenticate them before sending.
All these aspects are crucial when choosing a bitcoin wallet. For new users, always ensure that you are not sharing your bitcoin balance with a less-than-efficient application and only use the best wallet.