How to Keep Your Bitcoins Safe
Bitcoin is virtual money created by modern technology. Essential to keeping this digital currency secured is the use of preventive measures that will prohibit unwarranted transactions from your wallet. Safety of the private key is of utmost importance because unauthorized access can lead to loss of the entire money from your wallet.
How to secure a bitcoin wallet is now a major concern in the industry due to the increasing incidence of digital theft. Moreover, because it is an independent party, it has no association with the government or any financial institution. Another downside is the difficulty in tracing the ownership because it keeps your details private. However, whoever possesses the virtual coins becomes the owner, regardless of how he or she acquired it. Hence, it is crucial that owners are aware of the various ways of protecting their money:
- Keep it private: Never divulge information to your friends, neighbors and colleagues about your digital currency.
- Beware of online services: Never entrust your investment to new and unreliable online services. You should remember that even the most reputable companies could suffer from cybersecurity risks. In addition, it means you are allowing a web-based company to have access to your virtual wallet. The advantage you can get from these providers is that you can exchange your digital currency to dollars easily. Experts agree that you can use their services for a short period. Nevertheless, you should carefully review the company’s profile and feedback from its customers. Evaluate their record of accomplishment and their capacity to secure your account.
- Store it in different sites: Instead of placing a huge amount of bitcoin in a single wallet, explore options to keep it in several wallets.
- Maintain a single wallet for spending transactions: Your wallet is at risk during the time of its set-up and online payment activities. Malware programs that gain entry to your computer expose your money to infringement of security. Hence, experts recommend having a single wallet dedicated for your regular transactions such as transfer and receipt of funds. Your other sets of wallets are for wealth accumulation or buildup. The wallets that store your saving funds should be in offline media such as a USB, CD and other external memory devices. This is the safest way to protect your money because it has no connection to the internet.
- Encrypt wallets: A preventive measure to encrypt all online wallets and backups will lessen susceptibility to network hack. You can create a password to prevent other people from having access to your funds. However, you should ensure that you remember the password because of the very slight possibility of retrieval. Make a copy of the password to have a reference in times when memory fails you. Likewise, the password should have a minimum of 16 characters that include numbers and symbols, so that it is difficult to unlock. It is ideal to create different passwords for every virtual wallet that you have.
- Use two-factor process of verification: Most wallets offer the two-factor verification system to users. Aside from the password required when you log in, the system needs to confirm your identity with a second step. Some systems send a verification code on your mobile phone, which you need to key in to gain access to your wallet. This is an added process, but reduces the threat of theft. This authentication system is also applicable to all your social media and e-mail accounts.
- Multiple signature wallets: The concept is similar to the two-factor verification process, but this requires several signatures to complete a transaction. The system is available, but not many digital currency owners have taken advantage of its benefits.
- Hardware Wallets: This is a device exclusively for your online currency, which stores the addresses and private keys. It accomplishes the signatures needed for the transactions and sends it to your computer through a USB cable connection.
- Updated software: Install updated software for this digital currency to get new functions that will improve its security.
- Virus Protection: Have strong antivirus software in your computer to prevent corrupted files and criminal cyber attacks. Experts suggest that you scan your computer before opening your wallet. If possible, you should use a computer exclusively for your digital currency transactions. To avoid malware threats, you should not allow browsing, playing online games and other web related sessions. Always practice caution in clicking links forwarded to you because these are possible phishing attack.
- Set a target amount: Since bitcoin has an unpredictable status, you should assess market stability before investing all your funds in this digital currency. Set a target amount and sell a portion of it to seal your profit. Then, you can buy other forms of secure investments.
- Include it in your future arrangements: Because keeping the owner anonymous is one of the features of this digital currency, it is best that you incorporate it in your will. Your family cannot recover your investment if they do not know the password and whereabouts of your wallets.
- Backup your bitcoin wallet: Having a regular backup safeguards your money when you encounter technical crash and error on your devices. In addition, it lets you retrieve your wallets in case of computer or mobile loss.
- Mobile Access: If you are outside and need to transact using this digital currency, it is safer to use your mobile device instead of a computer that is not yours. Public computers are vulnerable to Keyloggers software, which can track your keystrokes and transmit your login information. Furthermore, avoid installation of suspicious applications on your phone that can possibly steal your personal details.
- Paper Wallets: Another safe way to keep your digital currency is through paper wallets, which involves printing the private keys and addresses in a piece of paper. The printed paper contains all the vital information to get access to your money. Therefore, it is advisable to store it in a safe vault.
Bitcoin is an innovative currency, but protecting it from the risk of online robbery relies on its owners. If you do not use precautions on the use of your digital money, you are an easy target of cyber crime. Be sure to donate if you wish to see more articles like this one. Thanks.