You’ll need a cryptocurrency wallet if you want to send, receive, or keep Bitcoin. However, it would be best if you kept this Bitcoin wallet safe. Scammers, fraudsters, and hackers will always be drawn to your Bitcoin, regardless of whether you use a physical hardware wallet, mobile app wallet, or a desktop software wallet – especially if you’re HODLing or dealing with large sums of money.
Some consumers, particularly newbies to the market, may be lulled into a false sense of security because Bitcoin is a decentralized asset. They should concentrate on the fact that Bitcoin holders are solely responsible for safeguarding and maintaining their wallets because a centralized organization does not manage the asset.
Obtaining a Bitcoin wallet compatible with your operating system or device is the first step in receiving, storing, or transmitting Bitcoins. No actual Bitcoins are held in a wallet because Bitcoin is a network with lists of unchangeable transactions. Instead, a wallet stores a private key – a secure digital code only the owner knows.
This private key connects you, the owner, to a public key (or a collection of public keys – numeric codes associated with a certain amount of Bitcoins).
Here are eleven distinct methods for safeguarding your Bitcoin wallet.
1. Get yourself a hardware wallet
Which Bitcoin wallet should you choose among the several options available?
Cold storage may be the best option for people who are particularly concerned about cyber threats.
Keeping your Bitcoins in a hardware wallet is a safe solution. Trezor and Ledger, for example, offer a variety of USB-like devices with security layers and encryption features pre-installed. Cyber attackers will have difficulty accessing your private key because they are not linked to the internet.
2. Keep your private key in a safe place
To protect your money, take your private key off the grid and keep it in the real world. Instead of storing your private key on an electronic device, write it down on a piece of paper.
3. Always use a secure connection to access the internet
A large number of public infrastructures are insecure and vulnerable. If you have a Bitcoin wallet on your laptop, try using the hotspot on your phone instead, and avoid using public wifi at all costs.
Stick to private or well-known relationships where you can ensure your relationships aren’t at risk of being hacked. To protect their source code, most wallets employ app shielding strategies.
4. Malicious Software
Malicious software can be discovered on any operating system, while Windows machines are more likely to be infected with a broader range of viruses. As a result, ensure your computer has installed up-to-date and dependable security software. Because most cyber assaults use viruses and malware to connect to your device and interfere with it, it’s vital to thoroughly inspect it before installing your wallet.
Protect your software up to date to keep yourself safe from malware.
5. Don’t click on any links that you don’t recognize or aren’t sure about
If something doesn’t feel right, keep an eye on your internet activities and check the link of the site you’re on. Scammers can clone entire websites and use URL addresses that are remarkably identical to the actual ones. Double-check the URL address if you use an online wallet or any other service that asks you to enter your private key.
6. Use a strong password to secure your online wallet
Choose your password carefully if you use an online wallet. Instead, create an alphanumeric combination that only you know. According to studies, consumers use the same password for several accounts in 52 percent of cases. Make that your wallet password is unique.
7. Never share your private key with others
The private keys are only accessible to you. Do not give private keys out to anyone, and don’t entrust your transactions to someone else. Any offers or requests for you to give your private key to a third party or individual should be ignored.
8. Use a distinct wallet for your day-to-day transactions
Using a second wallet that you can top up as needed is an excellent idea if you need to conduct tiny everyday transactions. You can create as many Bitcoin addresses or wallets as you want.
Sorting your transactions and keeping the most important ones separate will improve the security of your overall portfolio.
9. Use two-factor authentication for online wallets
Most online wallets provide two-factor authentication, which you should always use. It’s a low-cost security solution with a significant impact.
10. Always double-check the Bitcoin address
When completing transactions, always pay close attention to the recipient’s address. Malware programs can ‘intervene’ when copying and pasting a Bitcoin address and changing the copied output to another address. If you’re not careful, you can send your Bitcoins to someone else.
11. Make a copy of your digital wallet as a backup
You’ll be able to access your wallet if you lose your smartphone or it fails, due to a backup. Make a backup copy of your data and store it somewhere safe. If your smartphone is stolen, you can restore access to your wallet by using the backup file. As a precaution, you can move the cash to another wallet.
Finally, you are solely responsible for the security of your Bitcoin wallet. As the cryptocurrency market is always evolving and security methods are improving, you should take all necessary precautions and stay up to date on the latest security advancements and updates to keep your Bitcoin, or another cryptocurrency wallets, safe from hackers. The same can be said for other aspects of the crypto world, such as helium mining.
Disclaimer: The author’s opinions and observations should not be taken as financial advice. We do not offer financial product recommendations.