Potential problems with cryptocurrency wallets
When working with cryptocurrencies, you simply cannot do without an application such as a cryptocurrency wallet.
Using a wallet, you can transfer or receive cryptocurrency, exchange one asset for another, and sometimes withdraw money directly to a bank card.
Most often, users prefer to work with wallets installed on their phones; this allows for greater mobility and the ability to access their funds at any time.
When using wallets, users encounter a host of problems that are best addressed in advance. This is much easier to prevent loss than to spend time trying to get it back.
The most common problems when using wallets
Loss of access due to phone failure – the app is installed on your phone, and if it breaks, you lose access to your wallet:
To restore access, you will need to reinstall the application and use a 12-word seed phrase to log in.
But sometimes wallet owners lose this phrase, and with it, access to their funds. To prevent this, it's advisable to install the wallet on another device; this will provide additional insurance.
For example, I have a duplicate wallet installed on my wife’s smartphone. It’s scary, but I have to trust her, especially since she doesn’t know the password to it ;) .
Transfer errors – unlike bank transfers, errors when sending cryptocurrency can make it virtually impossible to recover the money. Most often, it's not the sending address itself that's confused, but the blockchain on which the cryptocurrency is based.
To avoid losing money, be extremely careful when transferring funds. It's advisable to first make a test transfer of a small amount, and only send the main payment after the tokens have been credited
It's also advisable to choose crypto wallets with the maximum number of assets, as even if the address is correct and the blockchain is incorrect, the funds will be credited to your wallet regardless. I experienced this firsthand after I was sent Tron cryptocurrency instead of USDT TRC20, but the coins were still successfully credited to the Tron address.
Wallet hacking is, unfortunately, a fairly common occurrence and typically results in the complete loss of all funds.
To reduce the likelihood of this happening, you should not send or share your seed phrase with anyone, your wallet should be password protected, and your phone should be locked.
Here are some more tips to help you save your cryptocurrency
It's best to store your cryptocurrency not in an e-wallet, but in a Binance exchange . You can enable additional login security via SMS here. Alternatively, you can install the exchange app on your mobile phone and use it like a regular wallet, but with more advanced features.
Don't put your crypto in one wallet; the more diversified your funds are, the less likely you are to lose them all at once.
It is not recommended to store large amounts of money in cryptocurrency, and when funds arrive, convert most of it into real money, as cryptocurrency still remains a rather unreliable asset.
