The cryptocurrency known as Bitcoin has changed the way we conduct online transactions. It is the fastest and freest way to transfer money to any place in the world. It is easy to shrug off an idea as novel as Bitcoin. But is not easy to find out an alternative to something as robust as Bitcoin. The brainchild of Satoshi Nakamoto has now become the world’s most sought after form of cryptocurrency. So many people in the media keep bashing this currency and it has become widely criticized throughout the world. It's valuation and acceptance rate have fluctuated wildly over the last few years after all. Nevertheless, there are also many real reasons why Bitcoin is here to stay and prosper in the long-term:
Are you planning to invest for the first time in Bitcoin or any other form of cryptocurrency? Before you proceed to invest in Bitcoin, you should first invest some time understanding how it works and educating yourself about it to keep your currency safe. So, this week with Crypto-Talk with Chris Mentillo I would like to talk about 9 Simple Tips for Beginners to Keep Your Bitcoin Safe and Secure:
1. Maintain Separate Wallets
You may be interested in investing only on one type of currency but that does not mean you use a single wallet to store all your cryptocurrencies. Have you ever stored all your cash in a single wallet? Then why would you do that while storing cryptocurrency?
There are different types of crypto wallets available in the market with different features and benefits. Choose the wallets which fits your purposes and distribute the cryptocurrencies accordingly to reduce the risk of your currency being stolen if stored in one wallet.
2. Keep Your Private Keys Secure
The most important thing to remember while transacting using bitcoin is that you should never share your private key with anyone as that is like a code which lets any transactions take place. If someone else has access to your private key, they can unlock your account too.
3. Use A Hardware Wallet for Daily Use
A hardware wallet is known to be the most secure way of storing cryptocurrency as there have been no incidents reported for stolen currency from it. Another benefit is that hardware wallet lets you store a small amount of cryptocurrency to be stored on your phone which you can use for everyday purchases.
4. Do Not Keep Your Funds in The Market for A Long Duration
Many people are interested in crypto trading nowadays due to the increased chance of gaining high profits resulting from the volatility of the market and efficient crypto trading software provided by sites like ethereumcodebots.com available to do all the computations using algorithms predicting accurate future market trends.
If you are planning to invest in trading, never leave your funds in the market for a long time. As soon as you see your funds profiting, withdraw it as the market is volatile and can drop anytime which will result in you incurring a loss.
5. Use Two Factor Authentication (2FA) For Additional Security
You must all have heard of Two-factor authorization in banking. It is also applicable in the world of cryptocurrencies where an additional security layer can be added to your wallet for extra safety. Activate 2FA across all your exchange accounts and every time you log in to your wallet, you will need to enter the private key along with the OTP (One-Time Password) which you will receive on your registered phone to get through.
6. Implement Multi-Signature to Shield Against Theft
2FA means just adding an extra layer for security but having multi-signature wallet requires another person's permission before you can access your wallet. This is like having a joint account with someone in your family whom you can trust, and it makes the process more secure.
7. Create A Backup of Your Wallet
Any digital transaction system means you will have to depend on your phones and computers hence you also need to be careful about taking a backup of your wallet as if your device is lost or damaged, you can recover your private key and gain access to your wallet with the help of the backup.
Once you choose a wallet to send and receive bitcoins, one important step you’ll need to take to protect your money is to back up your wallet.
8. Update Wallet Software
A bitcoin wallet is the software program which is used to keep your public and private keys hence you will have to always keep the software updated to enhance the security of it so that your wallet is secure.
9. Secure Your Computer
Apart from all the other securities, you also need to secure your computer by updating all the software and adding a reliable anti-virus to protect your system against being attacked.
Bitcoin wallets need a slightly different safety approach to keep your currency secure but once you spend some time to thoroughly educate yourself about it and get used to the way it works, it will not be difficult to keep your cryptocurrency secure.