Bitcoin is the currency of the future. Actually, forget that- Bitcoin is the currency of today, specifically today’s internet.
This digital form of currency was launched in 2008, and can now be used to make a variety of online purchases, just like traditional currency can.
Also, just like traditional currency, it is a potential target for thieves, hackers, scams, and con artists. But there ways to keep your Bitcoin Wallet safe and secure
#1 Use Hardware Wallet
Are you using a Bitcoin hardware wallet? If not, you should.
The basic idea is that you buy a device that stores your Bitcoin. You can only access your Bitcoin with your device and its ability to generate passcodes for you to unlock on your computer. If you lose the wallet, it’s not a big deal if you save your passphrase in a secure physical location.
If you want the best Bitcoin hardware wallet, check out KeepKey.
#2 Regularly back up your Software Bitcoin Wallet
One of the easiest, but most effective ways, to secure your Bitcoin and prevent loss is to regularly back up your bitcoin wallet. Since Bitcoin is an entirely digital form of currency, data can be loss through system failures, technical issues, or losing the computer or device that the Bitcoin Wallet client is installed on.
Backups can be stored offline, such as in an external hard drive, for even greater insurance against loss. A good Bitcoin Wallet client will have an easy to use back-up feature built in.
Use Wallet encryption and secure your passwords. Encrypting your Bitcoin Wallet means creating secure passwords that must be entered in order to access the wallet and to withdraw funds. It is required that Bitcoin passwords be at least 16 characters long and not use any recognizable words or phrases.
They should use a variety of different symbols, numbers, upper and lower case letters. Keep in mind that Bitcoin has very strict and limited password recovery options so make sure you have your password saved in a safe and secure place.
#3 Use a VPN to Protect Bitcoin
Anytime you buy or sell anything with Bitcoin that transaction will use identifying data like your IP address. As per policy, Bitcoin does not automatically encrypt any transactions.
With an unencrypted connection, this IP address and its related data can be intercepted and used to find out information about you that can be used to steal your identity and access your accounts.
A VPN will also provide protection when using a computer or device that has a Bitcoin Wallet while being used in an unsecured area, such as public Wi-Fi. VPNs will both conceal your IP address and provide encrypted connections during Bitcoin transactions.
Which VPN to use? Check out TorGuard VPN.
More Quick Tips to protect your Bitcoin Wallet:
- A Bitcoin wallet is essentially Bitcoin’s version of a bank account. Let’s take a look at simple but important steps that will help to keep your Bitcoin Wallet safe.
- Use an updated Wallet client from a reputable provider.
- There are actually quite a few different providers and types of Bitcoin Wallets out there, such as online, desktop, and mobile wallets.
- However, no matter which type you choose to go with make sure you know the source. Read reviews, and go for well-known Bitcoin Wallets brands with high download rates.
- Make sure to regularly update the Bitcoin wallet software as well, as these upgrades will contain security patches and updated protection features. An out-of-date Wallet version could leave you more vulnerable to hacking attempts. It is also advisable to use more than one wallet at a time and to also vary the types of wallet used.