CoinEx Wallet: Keeping Your Cryptos Secure Through Multiple Layers of Protection

When it comes to asset management, security is always a top concern. For example, you would always take good care of your banking passwords, securities accounts, cash, and valuables in everyday life. As their market cap continues to go up, crypto assets have gradually become a major part of many portfolios. How to keep their assets safe in the crypto space, an area prone to security breaches, is now the biggest worry among users.

At present, crypto users mainly store their assets in two ways. Some of them keep assets in the wallet address of a CEX, allowing them to trade cryptos anytime without having to manage such assets. Though the CEX solution is beginner-friendly, there is no guarantee in terms of security. After all, keeping assets on a CEX is to entrust them to the exchange, which means that such assets could be stolen in the event of embezzlement or hacking due to poor security measures.

Therefore, in addition to the short-term storage in exchanges for trading, there is a more specialized way to store and manage your cryptos — crypto wallets. A crypto wallet stores your private key, and owning the key gives a person control over the assets contained in your address. Most users adopt a wallet mainly to store and manage their assets in a secure manner. As such, CoinEx Wallet has put security first in its product design and introduced multiple ensuring mechanisms to keep your assets safe.

The inherent security of decentralized wallets

CoinEx Wallet is a decentralized multi-chain and multi-crypto wallet. Here, decentralization means that the private key is held by users themselves — The key is only kept on your devices through encrypted storage and will not be saved or uploaded to a CoinEx Wallet server. Furthermore, sensitive operations such as the generation, import, and backup of the private key will also not be uploaded to a CoinEx Wallet server for interactions. Hence, CoinEx Wallet, a decentralized wallet, is inherently safer than centralized wallets or exchanges. It effectively prevents the hacking of your private key through wallet servers.

Twofold protection with the security password

After you create and/or import a wallet through CoinEx Wallet, the system will ask you to set up a security password, which mainly serves as a form of 2-Factor Authentication (2FA). When using the wallet, your private key will be kept on your phone via encrypted storage. Without a security password, if someone steals the device while it is unlocked, he/she will be able to transfer assets from your wallets. Therefore, users will be asked to enter the security password as a form of 2FA when managing their assets (e.g. transfers,and  trades) or performing sensitive security operations such as deactivation of the app lock and importing the private key.

Keep your wallet safe through the App lock

CoinEx Wallet also features a function called App lock. This function will lock your wallet if no operation is executed for a certain period to prevent malicious operations such as authorization to insecure websites as a result of device hacking. Such malicious operations will expose your account to certain security risks.

Protect your mnemonic phrases via encrypted backups

Mnemonic phrases constitute another form of your private key. Right now, you can back up your mnemonic phrases in many wallets. In addition to such basic functions, CoinEx Wallet has introduced a safer way to back up mnemonic phrases. An encrypted mnemonic phrase backup consists of a mnemonic phrase password and a ciphertext QR code, and you must use both of them together to import your wallets.

The mnemonic phrase password is a password of 8 to 32 characters set by users, which is used for secondary encryption of mnemonic phrases. The ciphertext QR code is generated by encrypting mnemonic phrases with the above password. When importing a wallet through encrypted mnemonic phrases, besides a ciphertext QR code, CoinEx Wallet will also ask you to enter your mnemonic phrase password.

Plaintext mnemonic phrases that most people use could be stolen by someone if not properly kept, which that he/she would have direct control over your wallet. When it comes to encrypted mnemonic phrases, on the other hand, your wallet will remain secure as long as the hacker does not have both the ciphertext QR code and the mnemonic phrase password. It is therefore clear that, compared to plaintext mnemonic phrases, the twofold protection with encrypted storage makes your mnemonic phrases safer.

Always putting security first in asset management, CoinEx Wallet prioritizes product security in terms of coding and product design. Ensuring mechanisms including the app lock, security password, mnemonic phrases, and ciphertext QR code add multiple layers of protection to your assets in CoinEx Wallet, which means that you can fully trust CoinEx Wallet when it comes to security. As the APP gets updated, CoinEx Wallet will always remain committed to asset security, allowing all users to store assets in the wallet with confidence.