If you start trading multiple cryptocurrencies, managing all your keys can be a lot of work.Ī wallet with private key management features, also known as back up features, makes the process a lot easier.
For example, you may want a savings wallet and a spending wallet - and for each wallet you'll have a different private key that you must manage.įinally, if you're holding more than one cryptocurrency in your wallet, you'll have at least one private key for each of those cryptos. Second, you may want to have more than one wallet.
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Read more on password management best practices here. There are a few reasons it's difficult:įirst, for most people, the safest way to store private keys is by writing them down on paper and keeping that paper somewhere safe. While it's important to possess the private keys to your Bitcoin, managing those keys can be an onerous task. The best wallets make it easy to manage (back up) all your private keys. This means that only you will have access to your private keys (not nor anyone else). Importantly, generating your private keys using the Wallet is done exclusively on your device. The Wallet of course provides you with access to your private keys. By contrast, when you have the private keys, you're interacting directly with the Bitcoin public blockchain, so there's no middleman. Problem is, the custodian may, for example, delay your send request by days and charge additional fees to "let" you use your bitcoin. send it), you need to ask for permission from the custodian (since the custodian is the one in control). In the event that, for example, your custodian goes bankrupt, in all likelihood you'll never see your bitcoin again.Īdditionally, when you don't hold the private keys to your bitcoin, every time you want to use it (eg. This means if you're using a wallet that doesn't give you access to your private keys, you have nothing more than a claim to your bitcoin someone else is taking custody (and control) of it. Whoever is in possession of the private key for an address, has complete control over the Bitcoin associated with that address. The private keys for Bitcoin addresses take the form of randomly generated 12 or 24-word passphrases, and each Bitcoin address has its own private key (passphrase). If you don't have access to the 'private keys' for your bitcoin, technically you do not have control over your bitcoin - so make sure your wallet provides you with access to your private keys. Access to private keys (owning your bitcoin) You can see what people are saying about it in the above mentioned forums, as well as on the App Store, Google Play, and Trust Pilot. The Wallet has been around since 2017 and is used actively by millions. To check that the wallet is on the up and up, search for it on forums such as the Bitcoin Reddit or the Forum to see what people are saying about it.
The reputation of the wallet maker is one of the most important factors because it's entirely possible for a wallet to have built-in security flaws (whether by design or by accident) that put your bitcoin and other cryptoassets at risk. The Wallet integrates facial or fingerprint recognition, making access a breeze while maintaining the highest level of security.
Unlocking by PIN is acceptable, but can be inconvenient if you're using your wallet regularly.
This means your wallet should, by default, require that you unlock it every time you want to use it. It's important that your wallet app have a first line of defense in the event your device falls into the wrong hands.