Welcome to the interesting world of Bitcoin. Now what? We all know that Bitcoin is a rollercoaster of the financial world where you get to experience some thrilling adventures. But at the same time, you need to be prepared. This blog post talks about some basic security tips that will help you keep your Bitcoins safe and sound. So, let’s get cozy and talk about Bitcoin security.
1. Understand The Basics
Before talking about Bitcoin security, you should know what Bitcoin is and how it works. Bitcoin is a digital currency that has no existence outside of the internet. Its place is in the internet and it is not like the money you have in your real wallet. Bitcoin is money, but it is virtual money. And while you keep your real money in your wallet, you keep this virtual money in a ledger that is known as blockchain. Blockchain is a digital wallet that records every transaction you make with Bitcoin. When you know the basics of cryptocurrency, it will help you make informed decisions about your Bitcoin security.
2. Use Reputable Exchanges
When you want to buy or sell Bitcoin, you will have to use a cryptocurrency exchange. There are many exchanges out there, but you will have to find one that has a good reputation. Check for the reviews, and ask for recommendations from other people who you know are into cryptocurrency. Most importantly, always keep two-factor authentication (2FA) on because it adds an extra layer of security to your Bitcoin wallet.
3. Secure Your Wallet
Having a Bitcoin wallet is like having your own personal bank. There are two types of wallets: hot wallets which are connected to the internet, and cold wallets which are offline wallets. Cold wallets are more secure but their security depends on you. You will have to keep a cold wallet safe somewhere out of malicious reach. Hot wallets are convenient to use on a daily basis. Whatever you choose to use, make sure to keep it secured with a strong and unique password.
4. Backup Your Wallet
If you ever lose access to your Bitcoin wallet, you will lose all your precious Bitcoin. But you should not let that happen. Most wallets will give you a recovery option such as a recovery seed or passphrase. You will have to write them down and store them somewhere safe. The best way to store a passphrase is by creating a physical backup and storing it somewhere secure, like an offline device.
5. Update Your Software
Software updates are not hassle-free, but they almost all the time contain important security patches. When you are getting into cryptocurrency, you will have to keep your devices safe. Keep your operating system, Bitcoin wallet software and anti-virus programs updated. Security is not a one-time thing; it is an ever-evolving game and you have to be on the winning side.
6. Enable Two-Factor Authentication
2FA adds an extra lock to your virtual wallet. With two-factor authentication, you will have to enter a one-time code they will send to your mobile number or email address. Additionally, you will also have to use your password. 2FA is an efficacious way to protect your digital account from unauthorized access.
7. Avoid Public Wi-Fi For Transactions
Public Wi-Fi connections are convenient to use, but they are not secure. Don’t make transactions while you are connected to a public Wi-Fi network. Public Wi-Fi networks allow hackers to thwart your data. If you are transacting with Bitcoins, stick to your mobile data connection or a trusted private wifi.
8. Get A Hardware Wallet
If you have a lot of Bitcoins to protect, then consider investing in a hardware wallet. Hardware wallets are physical devices that specialize in offline storage for your cryptocurrencies. When you have your Bitcoins locked up in a physical device, it makes it impossible for hackers to have a hold of them.
9. Use Strong And Unique Passwords
This is not only for your Bitcoin wallet but also for other accounts you have online, you will have to use strong and unique passwords. Don’t use light passwords like your pet’s name, your surname, or anything that is too easy to crack. Create unique and strong passwords and have a password manager to help you save the day.
Bonus Tip
Protect your private keys that are the keys to your crypto Kingdom. Don’t share them with anyone and keep them secured in a safe place, ideally offline. Only allow your loved ones to access them if something happens to you.
There is a future plan you need for your crypto legacy. For example, in the future, you need someone who will inherit your assets and in that case, you will have to keep them secured in a document or safe deposit box. Following these security tips will help you protect your digital wealth better and enjoy the journey without always worrying about security.
