Bitcoin is one of the oldest and most widely used peer-to-peer payment systems today whose market cap value at the present moment is much more than other cryptocurrencies. Owing to the extensive popularity, many companies, as well as individuals, have already started integrating Bitcoin as a payment system.
Cryptocurrencies are going to be an increasingly important part of our future. And it’s important to develop a habit of securing your digital assets properly and knowing what to do if a device fails, or if it’s stolen. This article answers your questions on how to secure Bitcoin wallet and the best Bitcoin wallet for you.
5 Ways To Secure Your Bitcoin Wallet
1. Use Cold Storage
Cold wallets are specifically designed devices that are designated physical cryptocurrency storage. Cold storage wallets are not connected to the Internet and are thus less susceptible to hacking. Since accessing a cold storage wallet can be inconvenient, it’s best to split the bitcoins you own. For users that are particularly concerned about cyber threats, cold storage is most likely a good storage method. One of the biggest benefits that the cold wallets provide is that you can have your cryptos beside you. Makes such as Trezor and Ledger offer diverse models of devices that seem like USB which come with already installed security layers and encryption features. They don’t connect to the internet so cyber criminals will have a hard time trying to access your private key. This is a good way to secure Bitcoin.
2. Encrypt Your Wallet
Bitcoin Core developers enabled a feature inside the bitcoin client that lets you “encrypt” your wallet by protecting it with a passphrase. By using a passphrase, you “lock” your coins from being spent.
Encrypting your Bitcoin wallet adds an extra layer of security. The wallet can be encrypted by using a passphrase. The passphrase allows you to lock your coins and it becomes difficult for the hacker to take anything unless he knows your passphrase. In cases where a desktop, mobile, or hardware wallet is used, encryption is even more important to protect from online rogues. Not only should the password be strong with the use of capital letters, numbers, and special characters, but it should either be memorized or kept at a very safe spot since the password recovery mechanism is very weak in the case of Bitcoin.
3. 2FA Two-factor Authentication
Two-factor is simply setting up your most valuable accounts to check two pieces of identity, instead of one, before you can access your account. In security terms this is called “authentication,” which is simply demonstrating you are who you say you are. That’s why it’s called 2FA, or two-factor authentication. If you’re using a software wallet or an exchange-powered wallet, remember to turn on 2-factor authentication. This will make your wallet ask for confirmation via e-mail, SMS, secret code, or other method, giving double protection.
Backup your entire bitcoin wallet early and often. A wallet backup protects your bitcoins against computer or software failure. It may also help you retrieve your funds after your device was stolen or lost. In case of a computer failure, a history of regular backups may be the only way to recover the wallet.
Ensure to backup the wallet then store the backup at multiple secure locations (USB, hard drive, and on CDs). Depending on the storage location of your Bitcoin, you can look for a “Backup wallet” or “Export private keys” option in your Bitcoin wallet menu. You can then save this exported backup to a flash drive or copy it to a piece of paper and store it in a secure location. You can also encrypt the backup so that no one can access it even if they get hold of the file. Not only this, set a strong password on the backup. Also, do not access unknown or suspicious links
5. Stay Observant
Be careful with your online activity and always check the link of the site you’re on if something feels strange. Internet scammers can clone entire websites and use almost identical URL addresses to the authentic ones. If you use an online wallet or a similar service where you are required to enter the private key, make sure to verify that the website address is the authentic one.
In conclusion, the utmost responsibility of securing your Bitcoin wallet lies on you. As the world of Cryptocurrency evolves, security and operating systems evolve as well. Therefore, the best way to secure your Bitcoin wallet is to stay on top of your watching game. Take necessary precautions and up-to-date security improvement.
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