Bitcoin is a digital currency, and they are vulnerable to some risks such as hacking, phishing, etc. So, it is necessary to ensure their security by storing them in a safe location. One of the safest ways to store bitcoin is using a bitcoin wallet. Bitcoin wallets are also prone to cyber-attacks, so you need to take necessary steps to enhance their security and ensure that funds are safe in it. Some of the top security tips that you need to follow are as follows.
Store small amounts
It is obvious that you won’t keep thousands of dollars in cash with you, and the same goes with bitcoin wallets. No matter how many precautions you take, there is always some risks of getting your bitcoin wallet hacked. So, it is better if you store small amounts in it so that even if anyone attacks it, you won’t lose a huge amount of money. If you need to make bitcoin transactions on a regular basis, the best practice to follow is to store small amounts for daily uses. You can deposit funds in the bitcoin wallet every day according to your needs and requirements of the day. It will help you to ensure the safety of your bitcoins and will allow you to store the funds in a secure environment. If you want to know more about bitcoin, then you can read more from here.
Don’t use online web wallets
There are different types of bitcoin wallets that you can use to store funds, and each one of them has a different security level. If we talk about web wallets, they have the least security, so you must avoid using them. These are online services that allow you to store bitcoins, and they’re also the primary target of hackers. Several online bitcoin wallets and exchanges have been hacked in the past as they don’t have any security system that can stop the hackers from gaining access to the funds stored with them. So, if you are looking for a bitcoin wallet, you must avoid choosing a web wallet. There are several other wallets, such as hardware wallets, paper wallets, etc., that can provide you with better safety for your bitcoins.
Backup the wallet regularly
Bitcoins are irrecoverable, which means if you lose your private keys or your wallet gets hacked, you won’t be able to get the bitcoins back ever. As you know, bitcoin is completely dependent on technology, and it can fail at any time. For instance, if you have stored your bitcoin wallet on a computer and it suddenly crashes, there are massive chances that you may lose access to your wallet forever. So, to cover such risks, it is highly important to create backups for your bitcoin wallet. While creating a backup, you must ensure that you are backing up the entire wallet instead of backing up only the private keys.
Moreover, after creating a backup, you also need to store it in a safe location. If you are storing it over the Internet, you must encrypt it by setting a complex and difficult password. It will be better if your store the backups in an offline location such as a USB drive or CD, as it will safeguard it from all kinds of online threats such as hacking, phishing, etc.
Use a complex password
If you want to enhance the security of your bitcoin wallet, you must encrypt it. Encryption of a bitcoin wallet refers to setting a password on it. It will ensure that if anyone would try to gain access to your wallet or steal the funds, he will first need to insert the password. So, it will protect your bitcoin wallet from hackers, thieves and cybercriminals. When you are setting a password for your wallet, you must ensure that you remember it properly because if you forget the password, you will lose the funds stored in the wallet forever.
So, you need to make sure that you never forget the password, as there is an option available to recover the password. To cover the risk, you can write down the password on a piece of paper and keep it in any vault or safe. The password must be strong so that no hacker would be able to guess it easily.