Dangers of Website Wallets for Your NY Coin
If you’re using an online wallet to store your NewYorkCoin and other cryptocurrencies, then you’re taking a risk. Some of these risks are direct, while others are indirect.
Those risks are enhanced when you choose to store your crypto on a website’s wallet which has no history. Without history, there is no trust.
You could have someone walk away with your wallet and not even realize it until it was too late. There are hacking issues to consider as well. If the app or your mobile device can be cracked, then your wallet can be exploited and even your private keys could be extracted.
There are some very basic risks to avoid as well.
- If you lose your PIN, then you can lose what you’ve stored in your wallet. If your phone isn’t security protected, anyone could gain access to your wallet.
- If you lose your phone number, someone could gain access to your email account, which could lead them to your wallet.
- If you keep your seed keys local, but not encrypted, you are also at risk of wallet theft – even if you keep your wallet on a desktop that is usually offline.
Unencrypted hot wallets where your IP is traceable, or data packets can be analyzed, will leave plenty of digital crumbs to follow too.
How Can I Keep My Wallet Safe?
Always use a website wallet from a provider you know and trust, such as Coinomi. New providers are springing up all the time. Most will likely be excellent crypto keepers one day – just not today.
Then make sure your wallet encrypts your private keys. Verify that you have two-factor authentication available and that it is on. Be aware of your mobile number to ensure it isn’t hijacked.
If possible, use biometrics as an extra security measure on your mobile device.
The only way to avoid this issue completely is to purchase a hardware wallet. If that isn’t an option, then keep this advice in mind to give yourself the most protection possible with a website wallet.