What Security Features Do Users Expect from Crypto Wallets Today?

[JackWinston]

These days, users expect crypto wallets to be super secure by default. After so many hacks and scams in the space, security is not optional anymore.

Most users look for:

• Full control over private keys, especially in non-custodial wallets
• Two-factor authentication or biometric login
• Strong encryption to protect keys and data
• Easy but secure seed phrase backup and recovery
• Multi-signature support for extra safety
• Alerts for logins and transactions
• Protection against phishing and suspicious addresses

In short, people want a wallet that gives them full control while keeping their funds safe from hackers and mistakes. If a wallet does not clearly prioritize security, users usually do not trust it. That is why modern crypto wallet focuses heavily on layered security, user control, and advanced protection mechanisms from day one.

[Oshosondy]

1. A wallet should be able to connect offline in a way that you can make use of it on an airgapped device.
2. I like the multisig that you mentioned because it is also an additional security that you can add to you online or offline wallet.
3. I like wallet that you can make use of passphrase as it can help you against offline attacks.
4. As the world is becoming something else as crypto users are targeted like what is happening in France, I will like wallet that have ways to fool attackers in a way that they can not have access to your coin and in a way they will not be able to your coins. I do not use fingerprint and face unlock if it can affect this but not in all wallets.

• I do not use 2FA if it is a noncustodial wallet.
•I do not encrypt anything if it is a noncustodial wallet because I do not store the wallet file anywhere and I do not encrypt the seed phrase. I use passphrase instead and keep it in separate location away from the seed phrase.
• I have not seen a noncustodial wallet that will alert users for login before. I do not think this is necessary when it is not a centralized exchange that notifies users of new IP or new device login.

[Findingnemo]

You posted this under web wallet so I assume you are talking about the wallets that we install on a regular device which is also you use it to connect with internet and in that case you can never be sure the wallet is completely secured, non custodial wallets and giving the private keys means you own the fund and no one can have access to it until you knowingly or unknowingly expose it to them others.

Biometric is mostly convenient to skip the passwords to login to the wallet encryption which is not much useful in case of exposed seeds and keys.

Multi signature wallet is whole different thing, that has specific usecase though.

[elda34b]

You posted this under web wallet so I assume you are talking about the wallets that we install on a regular device which is also you use it to connect with internet and in that case you can never be sure the wallet is completely secured,

Has the definition of web wallet changed? As far as I can remember, people usually differentiate between web wallet and hot wallet. Stuff like MEW that is accessible through browser and apps is kinda different though, since they're effectively an app and a web wallet. I think web wallet is one where access is only available through a browser, even though some of them provide offline options or code to launch on the user''s own environment.

[Bitcoin_Arena]

Has the definition of web wallet changed? As far as I can remember, people usually differentiate between web wallet and hot wallet. Stuff like MEW that is accessible through browser and apps is kinda different though, since they're effectively an app and a web wallet. I think web wallet is one where access is only available through a browser, even though some of them provide offline options or code to launch on the user''s own environment.

Web wallets have become so unpopular over the years, and people are now probably confused about them, but in our times, a web wallet was accessible through a browser. Some wallets were custodial and required one to log in using the email and password, such as the old blockchain wallet, old Coinbase web wallet, Freewallet, etc., while others were non-custodial, such as MyEtherWallet.

Most of those wallets have since evolved and do have apps and DApps.

[elda34b]

Most of those wallets have since evolved and do have apps and DApps.

I guess that's true. I can't remember seeing a new wallet that is only accessible through browser nowadays. The standard is probably browser extension, or a standalone app as you mentioned. I wonder if it also changed how users manage their seed phrase. From reading on social media and news, it feels like some people still carelessly store their keys on cloud storage with no encryption and whatnot.

Speaking of security features, I guess 2FA is so popular nowadays. Even my family members who aren't up to date with tech knows about it.

[ABCbits]

• Full control over private keys, especially in non-custodial wallets

It's only possible on non custodial wallets. Some people would also argue the wallet must be open source, to actually know whether it's true or not.

• Full control over private keys, especially in non-custodial wallets
• Two-factor authentication or biometric login

Those two aren't really compatible. If 2FA or biometric needed to create TX, usualy it means the wallet use shared custodial mechanics.

• Protection against phishing and suspicious addresses

This feature sometimes exist on altcoin or multi-coin wallet, such as MetaMask. But i don't remember if such feature exist on any non custodial Bitcoin wallet.

[joniboini]

This feature sometimes exist on altcoin or multi-coin wallet, such as MetaMask. But i don't remember if such feature exist on any non custodial Bitcoin wallet.

Neither do I. I was gonna say one app I used in the past have them, but they're still multichain and some parts weren't open source as far as I can remember. Not sure if this feature is even popular for Bitcoin enthusiasts. I guess they could request such feature on Electrum or build a plugin to do that.