How to Keep Bitcoin Wallet Safe – Guide
Bitcoin is on a wild ride. The cryptocurrency’s value has surged from $3,000 to nearly $13,000 in the last three months, and is currently hovering around $10,000. People are more likely to purchase bitcoins under such conditions in hopes of making a profit. However, as the price of Bitcoin rises, malevolent hackers see an opportunity to steal money from gullible users who are unfamiliar with Bitcoin’s security principles. If you are new to Bitcoin, these indicators will help you protect your digital wealth. ..
Bitcoin is a digital asset and a payment system invented by an anonymous person or group of people under the name Satoshi Nakamoto. Bitcoin is unique in that there are a finite number of them: 21 million. Bitcoin can be exchanged for other currencies, products, and services.
Online wallets are not as safe as they seem. Anyone with your email and password can gain access to your coins and steal them, and unscrupulous agents can do that with just a phishing email. Also, unlike traditional payment systems, it is very difficult to recover lost bitcoins.
Here are some best practices that can improve the security of your wallet:
Enable two-factor authentication (2FA)
Two-factor authentication (2FA) is a security measure used in online accounts that requires users to provide two pieces of information in order to gain access: a username and password. If someone unauthorized accesses your account, they will need both of these pieces of information in order to log in. Two-factor authentication can be enabled on most online wallets by linking your account to a phone, mobile app or physical dongle. If someone unauthorized accesses your account and has the username and password, they still won’t be able to access your account unless they also have the additional factor, such as a mobile app or physical dongle. ..
don’t use your Phone Number for 2FA
Two-factor authentication is a security measure that helps protect your account from unauthorized access. Some methods of two-factor authentication are SMS passwords, phone numbers, or online accounts. If you use one of these methods to protect your account, be sure to keep your secret SIM card separate from your main account.
Use a separate email for your Bitcoin wallet
Most of us use the same email address for our online communications, but we use different email addresses for our Facebook, Twitter, and PayPal accounts. We share them with friends, family, and co-workers. If your online wallet is linked to this email address, the hacker will have one of two important pieces of information needed to access your wallet: your primary account email and a secondary account email. Use a separate email address for your online wallet — one that you don’t use for any other purpose. This minimizes the chance of your account being discovered by a cybercriminal.
Use an offline wallet
A Bitcoin wallet stores its cryptocurrency in one or more “addresses.” These addresses are long, unique strings of alphanumeric characters. Each address has a pair of public and private encryption keys. When other users want to send bitcoins to your address, they use your public key. When you want to spend your bitcoins, you use the private key to sign your transaction. The private key proves that you own the bitcoins stored at a specific address. So the key to securing bitcoins is to keep your private key safe.
Using an online wallet means that the service provider is responsible for protecting your private keys. This makes online exchanges an attractive target for hackers, as they can easily access your account information. However, these companies do their best to protect user accounts, and are breached quite often. ..
-Desktop wallets: These are installed on your computer and allow you to access your Bitcoin wallet from any device. -Mobile wallets: These are downloaded onto your phone and can be used anywhere, even if you don’t have a computer. -Online wallets: These are websites that allow you to access your Bitcoin wallet from anywhere in the world.
software wallets
Software wallets are applications that you can install on your computer, portable memory drive, or mobile device. A wallet app like Electrum stores private keys on your device and uses them to sign Bitcoin transactions whenever you want to make a payment. If you want complete security with a software wallet, you must install it on a computer that is not connected to the Internet and transfer the signed transactions to a computer that is connected to the Internet. The process is more difficult, but also safer.
hardware wallets
Hardware wallets are physical devices that generate and store cryptocurrency key pairs. They usually come with an associated application that you must install on your computer or your mobile device. When you want to send bitcoins to someone, you need to connect the hardware wallet to your computer or pair it with yours. phone by Bluetooth. Each transaction is signed into the hardware wallet with the user’s approval. Hardware wallets are very secure because the private keys never leave the device; Trezor and Ledger are two popular options. ..
paper wallets
Bitcoin paper wallets are a way to store and use Bitcoin. To receive money in your paper wallet, scan the public key with any Bitcoin wallet app and send it to the payer. To send bitcoins from your paper wallet, scan your private key to sign your transaction.
Paper wallets are a secure way to store bitcoins, but they’re not very useful for making daily payments. You can print a paper wallet and keep it safe, but once you’ve printed it, you need to destroy the digital copy so no one else can use it. ..
Offline wallets are not as secure as online wallets. If you lose your offline wallet or forget your security PIN, your bitcoins will be lost forever.
Final note
This guide is designed to help you keep your bitcoin wallet safe. If you have any questions about this article, please don’t hesitate to ask us. Additionally, please share this article with your friends so they can also benefit from its information.
