Undeniably, bitcoin has become a vanilla investment vehicle, but the more bitcoin goes mainstream, the more hacks, and scams in the cryptocurrency industry increase. That is why nearly 2 million bitcoin disappeared from circulation. Moreover, there are articles online that discuss how bitcoin is taking finance to the next direction.
Even though cryptocurrency wallet incurs the best security protocol to protect cryptocurrency assets from hack and thefts, there is still the possibility that hackers might access these wallets. It is not impossible to have access to your wallets if you do not follow proper security protocols. These are some of the top bitcoin wallet tips for securing your cryptocurrency wallets.
Make a Private Key Secure!
A private key is a code that allows you to access your bitcoins and other virtual currencies stored in a bitcoin wallet, but this private key should be stored somewhere safe. To ensure the security of your cryptocurrencies, you can correspondingly memorize the said private keys.
The best way to make a private key non-public is by writing it down many times on paper or imagining it as a word consisting of many words and letters. This technique is usually beneficial when dealing with large sums of bitcoin or other cryptocurrencies like ethereum and itecoin.
There are also email and SMS services available online, where people can send a message that includes a link to the private key. According to experts, when one is sending bitcoins to another person via private key, they should also provide a valid email address so that the receiver can confirm it without asking them directly. The best part about making your private key safe is that you can still be sure of what you have stored in your wallet without disclosing other people who do not have access to your keys.
Choose the Right Wallet
Choosing the correct type of self-custody wallet is also essential, and investors should check and verify their wallets carefully. Various online wallets are available on the market today, but you must go for offline storage as it is considered the most secure option.
For example, instead of storing your cryptocurrency assets online, you can store them in a safe hardware wallet that you can access very easily. Remember that leaving your bitcoin wallet on a computer connected to the internet exposes them to hacking. Also, it is highly recommended that you not use common file extensions for your cryptocurrency wallet files since these extensions are easily noticeable by hackers.
Cold Storage
If you are a bitcoin user, you can use an offline wallet. An offline wallet is also a cold storage method where people can store their cryptocurrency assets offline. It is considered the best way to protect cryptocurrencies from online hackers and scammers, but still, they can occur if people do not take the proper precautions.
Investing in hardware wallets such as Trezor and Ledger Nano S is always better because they provide high-level security and protection against hackers. Also, investors can secure their digital currency in a paper wallet.
Use Multi-signature
Multi-signature addresses a secure technique that works with cold storage by protecting your bitcoin assets from hackers and scammers. The technique allows you to add as many private keys as you wish to access your bitcoin assets. Multi-signature also provides the same level of security available with cold storage.
Use Online Security Services
There are specific wallets that are often subject to hacks and thefts. Therefore, it is always recommended for users to use online security services such as xapo or blockchain.info online signing service to store their cryptocurrency Wallet signer, the public key and private key. The first thing one must do before investing in this type of service registers an account and generate a unique set of keys for these services.
Use A Backup System
With the help of blockchain technology and other software downloads, investors can easily back up their cryptocurrency assets to different media such as USB flash drives in case of losses. Everyone should keep a copy of their wallet file if they lose it. Using a lightweight or mobile bitcoin wallet, you can easily backup the wallet file through a QR code.
You Can Always Confirm Your Address
It is always advisable for bitcoin users to confirm their wallets’ addresses with the help of online tools and check if they are valid. Since there are scammers and frauds in the cryptocurrency industry, investors must know how to identify them. Unfortunately, many investors have chosen to disclose their identities, making them fall prey to scams and frauds.
