The crypto market is still relatively new compared to others in the financial industry. However, since its inception in 2009, bitcoin has grown to be the most thriving cryptocurrency that everyone talks about today. The currency has gained wide exposure and more people are constantly looking for ways to invest in and trade bitcoin while making the most of it.
However, to get started on trading this cryptocurrency, you will need a wallet that stores the public and private keys to your funds and help you carry out transactions. There are many wallets today but before choosing one, here are a few factors you must consider:
The reputation of the company behind the app should always come first. Most people try to play it safe by opting for the most popular apps that have earned their reputation over the years. However, if you aren’t sure of their reputation, you can do a background check. This includes knowing their team of experts (which should be available publicly on their website), data management practices, data stored on their server, access to your private key, and how they manage website glitches.
You can also look out for app reviews on the internet such as this bitcoin system review that gives you an idea of what the app is about and what to expect. The idea is to have a full understanding of how it works before trusting your funds to it.
Several apps have several features and most often than not, your choice of wallet would depend on your preference. There are however certain features that you must look out for to ensure you are using an efficient wallet.
For example, the security of the wallet. This is the first most important feature to consider, as the safety of your funds is paramount. In the first half of 2020, crypto scams were calculated to have reached $24M, which is nearly 5x the amount scammers stole from bitcoin users in 2017. Scammers are continuously on the rise but you can play a key part in ensuring your wallet is safe.
Ensure the wallet has a two-factor authentication, biometric authentication, password-protected access, and multi-signature support. The security features vary for different apps but regardless of what they offer, ensure you can enable two-factor authentication.
Also, consider the backup feature to rescue your assets should anything unfortunate happen such as the loss of your phone or any technical difficulties. This helps ensure your cryptocurrencies are as safe as possible.
Other features to consider include a user-friendly interface, easy portfolio management, multi-currency support, payment options, fees or charges, automatic conversion rate, among others.
There was a time when bitcoin was the reigning cryptocurrency but there are other types of crypto today. It’s best to diversify your portfolio and consider trading other cryptocurrencies. However, this will be easier if you’re using a wallet that gives you access to multiple cryptocurrencies. Check the wallet and ensure it has the cryptocurrencies you’re willing to trade.
Before choosing a wallet, compare your options and opt for the one with the most benefits that suit what you want.