How to secure bitcoin?

Securing your bitcoins is quite essential. Otherwise, you might lose your investment at once. Bitcoins are stored in Bitcoin wallets. Consequently, you need to secure your Bitcoin wallet to ensure your Bitcoin security. Let’s find out how you can do that:

Storing the money

The first thing you need to take care of is where you store the money. Most of the time, people use online exchanges and wallets to store Bitcoins. However, recently several exchange platforms and wallets have confirmed data breaches. It’s because such platforms do not implement the required security and privacy as the banks do.

So, where should you store the money then? Well, you need to find some reliable wallets that offer the required security. You can find a secure bitcoin wallet here. Also, you can use paper wallets in case you don’t like the online world. Whatever the case, make sure to protect your private key. It’s because a private key will help you access your wallet.

Small amounts only

Would you keep thousands of dollars in your pocket or wallet? Maybe some of you will, but most of you won’t. The same goes for Bitcoin wallets too. You must keep only small amounts of Bitcoin money in your wallet for daily use. And the rest of the money should be in a safer environment. This way, even if something weird/bad happens, you won’t lose much of your money.

Wallet backup 

What if your computer crashes or someone steals your phone? How would you recover your Bitcoin wallet?

Well, if you use Bitcoin wallets, it’s best to take a backup. This backup will save you in time of need. However, you need to ensure that it’s well encrypted. Here are some important things you need to consider for a wallet backup:

Backing up the entire wallet

Certain bitcoin wallets may use an internal private key. So, if you take the backup of private keys for the Bitcoin wallet address that is visible, you might not be able to recover all of your money. Therefore, you must take a complete backup of your Bitcoin wallet. 

Encrypt the backup

If you simply take a backup, it’s only partially secure. You need to encrypt the backup to make sure that only authorized people have access to it. It’s because any online computer device is at the risk of being hacked.

Multiple backups for multiple locations

Let’s say you have a backup of the wallet on your computer. If our computer crashes, the file will crash with it unless you have a cloud backup. So, it’s recommended that you make multiple backups and store the same at multiple locations. You can use CDs, USB pen drives, papers, etc.

Backup regularly

It’s important that you take regular backups of your Bitcoin wallet. Your backup needs to have all the bitcoin change addresses and the new addresses you might have added.

Encrypt your wallet 

Encrypting your wallet is different from encrypting the backup. You need to either encrypt your smartphone or wallet or both. And when you do that, you can set a password that will be required to access the wallet.

However, there are two important/essential things you need to know about encryption: –

Do not forget your password.

Your Bitcoin wallet is not your food delivery application, wherein you can change passwords when you forget them. There are very limited options meant for password recovery. So, make sure that you never forget the password. You can do that by writing the password down on paper and secure it somewhere safe.

Set a strong password

The password you set for encryption must not only contain letters or numbers. Instead, it should be a combination of special characters, numbers, and alphabets, both capital and small. Also, it should be 16 characters long. This way, you can ensure the complete safety of your wallet.

You can use password generating tool like this one and generate a hard password. However, such passwords are hard to memorize. So, make sure to write it on a piece of paper and store it somewhere safe.

Use hardware wallets

One of the best ways is a complete disconnect with the online world. Of course, you’ll need an online computer for generating the wallet address and keys. But once you get through the initial steps, you can store the keys in a pen drive or any other physical storage device. This way, you can drastically lower the risk of losing any money.

There are several other tips like using a secure bitcoin exchange platform and updating the wallet software regularly. However, if you take all of the above steps into consideration, you can significantly boost your Bitcoin safety.