A cryptocurrency wallet is required if you wish to transmit, receive, or just keep Bitcoin. You must, however, maintain this Bitcoin wallet secure. Scammers, fraudsters, and burglars will always be attracted to your Bitcoin, whether you use hardware, mobile, or desktop wallet – especially if you’re HODLing or dealing with significant sums.
Because Bitcoin is a decentralized asset, some people, particularly newcomers to the market, maybe lulled into a false feeling of security. What they should focus on is the fact that, because there is no centralized body managing the asset, Bitcoin holders must assume complete responsibility for securing and protecting their wallets.
What exactly is a Bitcoin wallet, and how does it function?
The first step in receiving, storing, or sending Bitcoins is to obtain a Bitcoin wallet that is compatible with your operating system or device. Because Bitcoin is a network with lists of immutable transactions, there are no actual Bitcoins saved in a wallet. A wallet instead holds a private key, which is a secure digital code that is only known by the owner.
This private key serves as a link between you, the owner, and a public key (or a group of public keys) (numeric codes associated with a certain amount of Bitcoins).
There are 11 different ways to keep your Bitcoin wallet safe.
- Select a hardware wallet
Which Bitcoin wallet should you select among the plethora of alternatives available?
Cold storage may be the ideal alternative for those who are particularly worried about cyber dangers.
The use of a hardware wallet to store your Bitcoin is a secure option. Trezor and Ledger, for example, provide a variety of USB-like devices with pre-installed security layers and encryption capabilities. Because they are not connected to the internet, cyber attackers will have a difficult time accessing your private key.
- Store your private key in a secure location.
Take your private key off the grid and store it in the real world’ to secure your cash. Rather than keeping your private key on any electronic device, simply write it down on a piece of paper. To minimize degradation, store it in a cool, dry location away from heat and direct sunshine.
- Always connect to the internet over a secure connection.
The number of public infrastructures is vulnerable and insecure. If you have a Bitcoin wallet on your laptop, try using your phone’s hotspot instead, and stay away from public wifi at all costs.
Stick to private or well-known connections where you may be confident that your relationships aren’t subject to security concerns. Most of the wallets use app shielding techniques to secure their source code.
- Ensure that your antivirus software is current.
While Windows computers are more likely to be infected with a wider selection of viruses, malicious software may be found on any operating system. As a result, make sure you have up-to-date and reliable security software installed on your computer. Because the majority of cyber attacks employ viruses and malware to get connected to that and tamper with your device, it’s critical to properly examine that before installing your wallet.
To stay secure out from forms of malware packages, keep your up-to-date.
- Do not click on any links that are unfamiliar or questionable.
Keep an eye on your internet activities and check the link of the site you’re on if something doesn’t feel right. Scammers can clone whole websites and use URL addresses that are nearly identical to the real ones. If you use an online wallet or any service that requires you to enter your private key, double-check that the URL address is correct.
- Protect your online wallet with a secure password.
If you use an online wallet, choose your password carefully. Phone numbers, birth dates, names, and favorite movies should all be avoided. Rather, use an alphanumeric combination that only you understand. According to statistics, 52 percent of consumers use the same password for several accounts. Make sure your wallet password is one-of-a-kind.
- Never give out your private key to anyone.
Only you have access to the private keys. Don’t give them out to anybody, and don’t ask someone else to perform your transactions for you. Ignore any offers or requests that require you to share your private key with a third party or individual.
- Keep your day-to-day transactions in a different wallet.
If you need to make minor daily transactions, using a second wallet that you can top up as needed is an excellent idea. You may create as many Bitcoin addresses or wallets as you like.
Sorting your transactions and keeping the most essential ones distinct will make your entire portfolio more secure.
- For online wallets, use two-factor authentication.
Two-factor authentication is available in most online wallets, and you should always utilize it. It’s a low-cost, high-impact security solution.
- Double-check the Bitcoin address at all times.
Always pay special attention to the recipient’s address while conducting transactions. When you copy and paste a Bitcoin address and modify the copied output to another address, malware programs can ‘intervene.’ You may wind yourself transmitting your Bitcoins to someone else if you are not careful.
- Create a backup of your digital wallet
If you lose your smartphone or it malfunctions, you’ll be able to access your wallet thanks to a backup. Make a backup copy of your data in a different or secure location. If your smartphone is stolen, you can use the backup file to regain access to your wallet. You might shift the cash to another wallet as a preventive step.
Finally, the security of your Bitcoin wallet is totally your responsibility. Because the cryptocurrency industry is always growing and security systems are improving, you should take all necessary steps and remain up to speed with the newest security enhancements and updates to keep your Bitcoin or another cryptocurrency wallet secure from ill-intentioned individuals. Same goes with other parts of crypto world, like Helium Mining.
Disclaimer: The author’s thoughts and comments should not be construed as financial advice. We do not provide financial product advice.