If you’ve been taking deep dives into Bitcoin information lately and tried to find out more about cryptocurrency wallets, you’ve likely come across a web-based software wallet called Blockchain.com. You may also see some mentions of it associated with its former name, Blockchain.info.
Some of the most common concerns expressed by crypto enthusiasts relate to security, and understandably so. What should people know about security if they want to store their cryptocurrencies in the Blockchain.com wallet?
Blockchain.com’s Wallet Is a “Hot” One
Many discussions about options for storing cryptocurrencies talk about hot and cold wallets. Cold wallets don’t have any connection to the internet. One example is a USB drive wallet. Then, a hot wallet is one that does connect to the internet. Blockchain.com provides a hot wallet, and people access it by logging into a dedicated online portal or using the corresponding iOS and Android apps.
So, it’s a web-based software wallet. Because the Blockchain.com wallet exists online, it — like all other hot wallets — carries the risk of getting hacked by cybercriminals. In one of the most recent instances of that outcome, hackers stole the equivalent of $32 million in cryptocurrencies from a Japanese cryptocurrency exchange. And, customers owned the majority of those seized funds.
Then, concerning blockchain technology as a whole, it’s not an unhackable solution. But, some aspects about it, such as the level of transparency provided, make it more secure than some other options. That’s why enterprises and industries often focus on investigating how to use it in industries ranging from banking to health care.
If we go back to focus on this particular wallet, it’s notable that it has not yet been the subject of a large-scale hack. However, some users of online forums reported receiving notifications of attempting logins from unknown browsers or IP addresses.
With these things in mind, you should consider that the wallet initially known as Blockchain.info carries the same risks as any other hot wallet. You should apply best practices for internet usage, but don’t need to worry about an elevated threat risk when using it.
The Blockchain.com Wallet Has Multiple Security Features
When reading reviews about the Blockchain.com wallet, you might notice that those rundowns bring up security and talk about how the wallet has advanced options. Indeed, the Blockchain wallet has numerous security-related advantages that you might not fid in some other hot wallets.
Even better, you can read about all of them on a dedicated page on the Blockchain.com site.
That area explains the functionality of settings about whitelisting IP addresses that have login privileges or enabling password stretching to make it more difficult for hackers to access the wallet through a brute-force attack.
There is also a broader Security Center page that walks people through how to enable two-factor authentication (2FA) or creating a wallet backup. The plain language used for the instructions is a plus if you’re brand new to Bitcoin or other cryptocurrencies and want to start on the right foot regarding security.
Blockchain.com Staff Members Cannot Help With Password Recovery
Many online brands, like those that offer password managers, advertise that not even the company’s employees can see your master password. The team behind the Blockchain.com wallet are similarly in the dark about that detail. A page within the website’s help guide states that employees cannot access your wallet or its password.
However, if you try all the passwords you can remember to no avail, there’s an option to use a recovery phrase to transfer your funds to a new wallet. It’s a random string of 12 words that you need to write down and store somewhere safe.
Tens of Millions of Users Have the Blockchain.com Wallet
A phrase on the Blockchain.com site refers to the product as “the world most popular crypto wallet.” But, you might want more specifics. Fortunately, a graph on the Blockchain.com site shows the total users surpassing 40 million.
On the one hand, you might think that this wallet having such an impact makes it especially appealing to hackers. While that may be true, the features mentioned here and others show that the developers implemented precautions.
It’s also worth realizing that the reviews of this widely used wallet are primarily favorable. If it had major security flaws, some people would undoubtedly point them out and warn others.
Don’t Be Overly Dependent on One Option
In closing, the consensus among cryptocurrency enthusiasts is that using a hot wallet for storage is not as secure as a cold wallet. Many of them specify that if security is a pressing concern — such as when the total amount of cryptocurrencies you hold reaches an impressive high — think carefully about being solely reliant on an online storage option. But, the Blockchain.info wallet, now known as Blockchain.com seems a smart choice if you do want a hot wallet.
No matter what you use, it’s a good idea to spread your cryptocurrencies among multiple storage options instead of just one. That way, if the worst happens, you don’t lose everything.