Top on the list of priorities when choosing a cryptocurrency wallet is the security features on show. Virtual currencies have in recent times become the target of many cybercriminals. Many notable cryptocurrency exchange platforms have suffered hacks resulting in the theft of digital coins running into billions of dollars.
2018 began with the high-profile Coincheck attack which saw hackers carting away more than $500 million in NEM tokens. In June 2018 alone, two South Korean-based platforms – Coinrail and Bithumb – also suffered hacking attacks. In all of these cases, the attackers were able to steal funds from the platform’s so-called ‘hot wallets’ (online wallets).
With this in mind, it is evident that any wallet choice must be one that places a high premium on security. To this end, factors such as two-factor authentication (2FA) and multi-signature (multi-sig protocol) are vitally important when settling on a wallet choice.
2FA and multi-sig are additional security layers that offer enhanced protection to your valuable cryptocurrency tokens stored in the wallet. 2FA employs a second security code in addition to the usual pin/password. Multi-sig enables the set up of additional permission from a trusted party before any transaction is approved on your wallet.