Bitcoin is an incredible cryptocurrency with several unique features. But being the most valuable cryptocurrency, several risks and threats come along with it. So, if you are planning to invest in bitcoins or use them, you must have proper knowledge about ensuring the security of your bitcoin wallet. Some of the top tips to secure your wallet are as follows.
Stay aware of the online wallets
There are several ways to store bitcoins as there is a wide range of bitcoin wallets available in the market and each one of them provides you with varying features and facilities. There are mainly two types of wallets; online and offline. It is incredible if you are using an offline wallet for storing bitcoins and making transactions. Still, if you are using any online services, you must be careful as there is a massive risk of any cyber theft or fraud while using such services. So, if you want to make any bitcoin transactions or trade bitcoins, you better avoid using an online exchange or service. If you are using one, you must ensure that it has all the necessary security features to secure your funds, data, and information. There are some security features such as two-factor authentication, multi-sig, etc., that you can use while using such online services to avoid losses and common problems about cryptocurrencies.
Keep separate wallets
If you are a novice bitcoin user, maintaining two separate wallets is one of the best security tips you need to follow. Keeping a bulk amount of bitcoins in the same digital wallet that you are using for your day-to-day transactions is not a good idea. So, if you want to keep your bitcoins safe from online attackers, the best option is to maintain two separate wallets. You can keep one bitcoin wallet for storing the bulk of your funds and the other one for storing small amounts to make daily transactions.
There are two types of bitcoin wallets; hot wallet and cold wallet. If you want to keep a massive portion of your funds in a safe environment, a cold wallet is the best option as it is an offline wallet. On the other hand, if we talk about making daily bitcoin transactions, a hot wallet is perfect as it is an online wallet and allows you to make easy bitcoin transactions over the Internet.
Always backup the wallet
It is irrefutable that a bitcoin wallet is a safe place to store bitcoins, but there are certain risks to which a bitcoin wallet is also exposed. First, if you have some knowledge about bitcoins, you must know that bitcoins are irrecoverable, which means if you lose access to your private keys or your wallet, you may lose your bitcoins forever. So, while using a bitcoin wallet, you must ensure to backup the wallet regularly. In addition, some bitcoin wallets have hidden private keys that are not used for the visible addresses but are crucial to access the funds stored in the wallet. So, while creating a backup, you must ensure that the entire wallet gets backed up so that you won’t lose any portion of your funds.
Creating a bitcoin wallet backup is important but storing it securely is more important. There are several places to store bitcoins, such as USB drives, CDs, online platforms, virtual lockers, etc. If you are storing it online, you must ensure that your device is equipped with the latest anti-virus and has excellent security. Offline storage is also a great option to avoid the risk of hacking or online thefts.
Wallet encryption
Wallet encryption refers to setting up a password for the wallet, and it helps a lot to enhance the security of your wallet. There are some things that you need to keep in mind while encrypting your bitcoin wallet. First and foremost, you need to ensure that you don’t forget the password; otherwise, you may end up losing access to your bitcoins forever. To be on the safe side, you can write down the password on a piece of paper and store it in a secure location. Secondly, you need to choose a long and complex password so that the hackers won’t crack it easily. It must be at least 14 characters long and should include alphabets, numbers, symbols, etc.
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