Possible 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 them to be more mobile and gives them the opportunity to use their money at any time.
In the process of using wallets, users encounter a lot of problems that it is advisable to know about in advance. This makes it much easier to prevent losing money than to try to get it back for a long time.
The most common problems when using wallets
Loss of access due to a broken phone - the application is installed on the phone, and if it breaks, you lose access to your wallet:
To restore access, you will need to install the application again and use a 12-word seed phrase to log in.
But it happens that wallet owners lose this very phrase, and with it access to money. To prevent this from happening, it is advisable to install the wallet on another device, in this case you will have additional insurance.
For example, I have a duplicate wallet installed on my wife’s smartphone, it’s scary, but I have to trust it, especially since she doesn’t know the password for it ;) .
Errors during transfers - unlike bank transfers, errors when sending cryptocurrency can make it almost impossible to return the money. Most often, it is not the sending address itself that is confused, but the blockchain on which the cryptocurrency is based.
To avoid losing money, you should be extremely careful when transferring and it is advisable to first make a test sending of a small amount, and only after the tokens have been credited send the main payment:
It is also advisable to choose crypto wallets with the maximum number of assets, since if the address is correct and the blockchain is incorrect, the money will be credited to your wallet in any case. I was able to verify this from my own experience after I was sent the Tron cryptocurrency instead of USDT TRC20, but despite this, the coins were successfully credited to the Tron address.
Hacking a wallet - unfortunately, happens quite often and usually leads to the complete loss of all funds.
To reduce the likelihood of such a situation occurring, you should not send or share the seed phrase to anyone, the entrance to the wallet should be password protected, and the phone itself should be locked.
A few more tips to help you save your cryptocurrency
It is advisable to store cryptocurrency not on an electronic wallet, but on the Binance exchange ; here you can enable additional login protection via SMS. And if you wish, you can install the exchange application on your mobile phone and use it like a regular wallet, but only with more advanced capabilities.
Do not put your crypto into one wallet; the more differentiated your funds are, the less likely you are to lose them all at once.
It is not recommended to store a lot of money in cryptocurrency; when funds arrive, transfer most of it into real money, since cryptocurrency still remains a rather unreliable asset.