Interest in cryptocurrencies is reaching a fever pitch, both driven by and feeding skyrocketing prices for cryptocurrencies. This has been accompanied by a proliferation of wallets both as standalone wallets and custodial wallets that provide a fuller institutional experience. Less sophisticated users are likely to turn to custodial wallets, which have lower barriers to entry and resemble traditional financial institutions, but which have broader security vulnerabilities. All of this puts the onus of safeguarding those funds on the creators of cryptocurrency wallets — which can either enable or prevent fraud.
For Cryptocurrency Wallet Safety scorecard, Javelin evaluated the customer-facing fraud mitigation features of major cryptocurrency wallets against the fraud threats facing cryptocurrency investors. Javelin selected 14 custodial and noncustodial cryptocurrency wallets that were accessible to the Internet; available for desktop, Android, or iOS; appeared to be actively maintained by a core group of developers; and intended for storage of moderate to large values of cryptocurrencies. Wallets were scored according to Javelin’s Protection, Detection, and Resolution® Model.