Now that you have got a Bitcoin (BTC) wallet, you have embarked on a journey of cryptocurrencies. You should have it in mind that you should keep your wallet safe and secure from hackers, cybercriminals, thieves and all forms of unauthorized persons. Through this article, you will get to know on how you can protect your crypto coins and get your bitcoin secured.
Before we ride into the context of the day which is securing your bitcoin wallet. You might have been hearing kinds of stuff about bitcoin mining, bitcoin trading and you want to know how to get bitcoins. Firstly, you need to understand what a bitcoin wallet is before you can go into it.
A Bitcoin (BTC) wallet is a form of a digital wallet that allows you to retain cryptocurrencies like the Bitcoin. Now that you have purchased bitcoins, you cannot just store or keep your bitcoins anywhere, this is why you must have a wallet. The wallet serves the purpose of keeping your bitcoins.
Also, bitcoin wallets come with private keys which aren’t supposed to be revealed to anyone. In addition, there are different types of crypto wallets, they are hardware wallets, software wallets, electronic wallets, online wallets, and the electronic wallets. A good example of wallets for storing cryptocurrencies are Ledger Nano S wallet, Coinbase Wallet etc
How To Protect Your Bitcoin Wallet
We would like to mention a handful of methods used by cybercriminals to defraud Bitcoin wallet holders of their crypto tokens.
Indeed, con artists do not steal the fiat currencies of people, they also dupe and defraud people of their hard-earned digital currencies. Since the world is going digital, theft goes digital along with it. This is why you must pay attention to illicit phishing links, passwords for your devices, fake crypto coins, and cryptographic keys.
2. OLD PASSWORD BACKUPS
Hackers can also get unauthorized access into your accounts using an old backup method. As smart as they are, hackers can create a recovery program and your frequent change of password wouldn’t count because they would gain access to people’s wallet and empty the funds in the wallets.
3. SYBIL ATTACK
Wondering what the Sybil attack means? The Sybil attack is a situation when a cybercriminal blocks people from performing their transactions as they make moves to take over the network. Also similar to the Sybil attack is the DOS attack which is the Denial-of-Service attack.
In this case, an attacker attacks for the purpose of stealing coins. However, the DoS attacks usually happen to wallets that perform exchanges. No matter the type of attacks you get there is always a way out to keep your bitcoin wallet secured.
The question on your mind is on how you can be able to keep your wallet safe and secured from cyber attacks. You will get 5 important tips which you can always use to keep your bitcoins secured and safe from unauthorized access.
1. OFFLINE MODE OR HARDWARE WALLET STORAGE
Basically, offline mode is an ideal way of keeping your Bitcoin wallet and funds safe from the prying eyes of cybercriminals. Offline mode or cold storage is all about moving and transferring your bitcoins to a location without internet connection. Indeed, this method is safe because it is not prone to hacking.
This method is just like transferring files between two computer system without being connected to the internet. However, you are strongly advised not to retain all your bitcoins in this method; you can share your coins into two portions, you can keep some coins in the cold storage and retain some of your bitcoins online. You can check out the best cryptocurrency hardware and software wallets.
2. CREATE A WALLET BACKUP
Just to stay on a safer side, you can create a backup for your bitcoin wallet. These backups guard your wallet against possible errors and computer failures
3. WALLET ENCRYPTION
Apart from the two security tips mentioned above, another method you can use in securing your bitcoin wallet is to encrypt your wallet. Encrypting your bitcoin wallet helps to provide and guarantee protection for your wallet.
Bitcoin wallet encryption helps to keep the hackers frustrated and confused as they get to go through a tough time in gaining access to your wallet. Wallet encryption is a perfect option if you use a mobile device, computer or a laptop for your Bitcoin trading.
4. PASSWORD MANAGEMENT
As a bitcoin wallet holder, you should learn how to manage your wallet password. A strong password is essential in securing and protecting your bitcoin wallet.
Ensure that you include characters from numbers to special characters, alphabets to caps when creating a password but do not come up with a password that you cannot memorize. You can also try to change your wallet password from time to time, but writing your password in a diary is not advisable.
5. TWO FACTOR AUTHENTICATION (2FA)
Have you ever heard of the 2FA? The 2FA is referred to as the two-factor authentication, this technique is an advanced security method which you can use to protect your bitcoin wallet.
If you are a crypto user, do not do any business with a crypto exchange that doesn’t provide the two-factor authentication service. The two-factor authentication works in two ways, the first is the use of Google authentication. In this case, you have six-digit numbers which change frequently from time to time. The good news is that you’ll be able to know the digits. Secondly, there is biometrics.
Through this option, you’ll use your fingerprint to gain access into your Bitcoin wallet. In some other cases, the cryptocurrency exchanges send a text message to your mobile phone before you can be able to log into your dashboard. Therefore, you must ensure that you enable the 2FA on your Bitcoin wallet.
In summation to all that has been said, we advise that you apply these steps to secure your bitcoin wallet from hackers and cyber incursion. If you are still new in the crypto-sphere, there are opportunities and possibilities of hitting the goldmine. However, before you can achieve that, you will have to overcome some obstacles and hurdles.
Unarguably, one of the biggest hurdles to bypass is cybercriminals. These cybercriminals aren’t just IT savvy; they also stay up all day and night long diving on schemes to empty your bitcoin wallet. This is not to scare you but it is to help you become more careful and vigilant.
Zara is a business consultant, life coach, content creator and a media entrepreneur. On this blog, I share various tips as I inspire my readers and provide business ideas that would generate revenue for them. Feel free to read and share my posts with your friends.