Money has been changing its form since its inception. It was starting with gold coins to bills, credit proof, and now digital wallets. But no matter what, it is always backed by institutions and government. All these include the fiat currencies of the official monetary system. In This Article, We Will Show You Five Easy Ways By Which You Can Protect your Bitcoin.
Just the way you ensure that all the cash in your wallet is safe, you also must ensure that you maintain your bitcoins’ safety. You must know that bitcoin wallets can be hardware-based or software-based. But really, how safe is these wallets is the question.
All wallets have some password or private keys using which bitcoin owners can access the wallets. If you forget the password or if you lose the wallet key, then you will not be able to access the wallet. The biggest threat that bitcoin possesses is that the user often forgets the password or loses the resolution, and sometimes the key even gets stolen. You can slowly lose your access if there is some malfunction in the computer like the hard drive crashing and other software-related problems.
Five Easy Ways To Protect Your Bitcoins
1. Use Multi-Signature
The idea of multi-signature has been creating a lot of buzzes lately. The process involves some people ( 2 to 5) to approve a transaction for it to take place. This process lessens the intermittent threat of theft as a single person cannot support a transaction. The people who are given the authority to approve the method of multi signature are decided from the beginning, and when someone from the group wants to use bitcoins for some transactions, they need the approval from others to continue with the transaction.
2. Keep Your Software updated
The software needs to be kept updated. If a wallet is not updated, it becomes a very target for hackers and thieves to hack into it. Ensure that your wallet is updated with the latest version as the latest versions come with all the security fixes. Just by doing this simple update, you can potentially stop an attack from hackers. Also, keep the Operating system that you are using on your mobile and computer updated to ensure your bitcoins’ safety.
3. Use Bitcoins In Offline Mode As Much As Possible
Using cold storage is the way to go. Using bitcoins in the offline mode is called Cold Storage. Using cold storage all the time can be quite problematic so what you can do is you can use some bitcoins from cold storage and some from online. It is even better to split to ensure your safety. Cold Storage methods include a USB drive, Sound wallet, hardware wallets, and paper wallets.
4. Always Encrypt Your Wallet
With the blockchain technology, an extra layer of security is added. Our WhatsApp messages are end-to-end encrypted; hence, you can rest assured your messages are well protected. The same is the case with bitcoin wallets; it would need a key or password for it to allow access. Ensure that you create a strong password using various characters on your keyboard, like utilizing some block letters, using some small letters, and some special characters. You write it down and keep it in the safest possible place you know, or the best you can do is to memorize it by heart.
5. Always Make A Backup Of Your Bitcoin Wallet
People have been taking backups for ages, and it’s the best to backup your total bitcoin wallet. In case if your computer crashes, the only source is regular backups of your computer. Make sure you set a solid password on your backup.
Since the inception of bitcoins, there have been several bitcoins, either getting hacked or stolen. Ensure you follow all the safety precautions mentioned above to protect your bitcoins. You can know more about Wallets at bitql.