5 Must-Have Tips For Securing Your Bitcoin Wallet
2017 main highlight was BitCoin – People who have invested in BitCoin back at the start of the year, they become a millionaire by the mid of it and so the hype continues. With so much potential in BitCoin, many who have no idea about Cryptocurrency or blockchain methods heavily started investing in BitCoins.
But what they don’t realize is that even virtual money can be robbed easily. The concept of BitCoin wallet has its loopholes. Does that mean you stop investing in Bitcoins since it has loopholes in its security system? Absolutely Not!
Unlike banks and vaults, virtual money is much easier to steal. There are no guards or alarms fixed with these online wallets to intimate you when someone tried to rob your money. So it’s all you who need to protect the wallets from all kinds of threats by exercising best security practices. Here we have listed a few tips for you to secure your Bitcoin Wallets.
Let’s check them out.
Use Encrypted Wallets And Strong Password
In the digital age its highly recommended that you encrypt your wallet on the highest level to avoid any uncertain mishaps. Nowadays Bitcoin wallets come with encryptions to protect private keys but if your wallet lacks it, then it would be harder for you to set a password which cannot be penetrated easily. Passwords with alphabets and numbers are very weak and can be breach easily.
Always use a complicated password like ‘Acvb7%3>0?nbGji’ which is not easy to break. Also, avoid using a computer generated password which has no authenticity of not being used or compromised. It is also suggested to keep a record of your password somewhere safe and far from the computer which you always used.
Unlike a Bank or your email, Bitcoins security features work differently. An emails address password can be recovered, but Bitcoin Wallets passwords are not secure to recover which is why it’s suggested memorizing your password no matter what happens. Make a copy of it on a piece of paper if you like to because once you forget it there’s a chance, you will lose your funds.
Two Factor Authentication
Nowadays it’s a common practice for many social apps and online platforms which require two-factor authentication. Even the bank you use to make transactions asks for your permission twice before making the transaction. Same procedure needs to be adopted for Bitcoin wallets. Two Factor Authentication or 2FA is a double shield of authentication about who you are.
In Bitcoins it is advised to choose those bitcoin wallets which have the option for two-factor authentication as otherwise, it won’t be as secure. In case if someone breaks into your wallet, they will still not be able to withdraw the funds as they will need the second verification which can be either a code send on your phone, or finger Scan, etc.
Separate your Bitcoins to Hot and Cold Wallets
Bitcoin Wallets are two kinds depending on your usage. The Wallets that are connected through machines called ‘Hot Wallets,’ since they are interlinked to the World Wide Web and are stated to be more vulnerable to network-based thefts since it’s the digital age, anything can be hacked online. While on the other hand, Offline Wallets pose a lesser threat since they are not connected to the internet.
It is advised by analysts that if you run your business through Bitcoins online, use offline wallets as much as you can. Why? They are much safer, and they do not give hackers the opportunity to penetrate your encryption. If it’s a necessity to make use of web-based wallets than try to store your Bitcoins on an offline Wallet called as a Cold Wallet.
These Cold Wallets could be placed in a safety deposit box for instance. And you can keep a small number of Bitcoins online as well to run your day to day business transactions. Another tip for the day, as soon as you get Bitcoins on your online wallet, transfer them to your offline wallet to be safe.
Store Private Keys Offline
If you want to keep your security in check for your Bitcoin Wallet than it’s advised to remove its private keys and place them somewhere no one can access it, maybe on a separate hard drive no one knows about or a portable USB which isn’t connected to the internet. Any device not connected to the internet in any way is safe and far away from hackers.
For doing that the best tip would be to keep private keys offline under all circumstances. It is self-explanatory if you use Bitcoin Wallets you would know these wallets make use of Public Keys for sending and receiving Bitcoins. Moreover, the public keys also keep a check on your Bitcoin account balances as well, while it is the public keys which authorize the payments under your command. Now hypothetically imagine if someone had access to your private keys than what would they do with your bitcoins.
Next time you decide to make a payment online, make sure you bring your computer offline with the use of a USB stick for instance, and when you are sure it is offline, then you enter your private key. After the transaction, it is safe to be back online. The process is barbarian and old school, but that’s what you need to do to secure your investment from thefts.
Lastly, when it comes to your privacy, use the ultimate measure to secure your bitcoins. The last tip to secure your Bitcoin Wallet would be to use a VPN, which works as a Kevlar against unwanted hacks and thefts. Most online payment methods leave a trail of breadcrumbs which can be traced back.
VPN, on the other hand, keeps the details anonymous using military-grade level of encryption for you. Information that passes through the VPN server is jumbled so that no one can read or pin point it. Moreover, the VPN keeps no logs which means the server won’t save your data and no third party could track your location. The same procedure should be used on the Bitcoin Wallet, use a VPN service and your Bitcoin transactions will be double-anonymous. VPN changes your IP address to a different country IP address making your transactions secure and safe.
There are always pros and cons attached to everything and so is with BitCoin wallets. But if you follow these security tips, there are 99.99% chances that you will never encounter any online hack. Stay safe and be watchful always!