Top security tips that every Bitcoin user needs to follow!
When it comes to digital currency such as bitcoin, security is the biggest concern. Bitcoin has minimum regulations, which make it easier for hackers to steal or misuse them.
So, before you start using bitcoins, you need to know how to store them safely and maintain your wallet’s security. There are several risks when you are using bitcoins, but you can avoid all those risks and maximize security if you take certain precautions. You can use this software for some crucial security tips that you need to know about.
Maintain separate wallets
One of the biggest mistakes that most novice bitcoin users make is using the same bitcoin wallet for all transactions. It makes it easier for hackers to trace your wallet and hack it.
If you want to enhance your crypto wallets’ security, you must keep different wallets for varying purposes. For instance, you can maintain a separate wallet for savings and a separate one for making daily transactions. It will allow you to store the bulk of your bitcoins in a different wallet and use the daily purpose wallet for making transactions.
There are different types of bitcoin wallets, and each one of them serves a different purpose. So, for daily transactions, you can use a mobile wallet as it is highly accessible, and for keeping your savings, using a cold wallet will be an excellent option. It will store the bitcoins offline and safeguard them from different types of online risks.
Choose a good password
If you are using an online wallet for storing bitcoins, it is crucial to choose a strong password for it so that no one is able to crack it. You must avoid using the same password that you are using for your other social media accounts, as it will increase the risk of hacking. Using an identical password will make it easier for hackers to gain access to your wallet and steal all your bitcoins. Setting a password is a crucial task, and you need to know that how you can make your password strong and unique.
You must avoid using any common word related to you in the password, such as name, date of birth, etc. The password for your wallet must be strong and should be a unique combination of numbers, alphabets, and symbols. The better combination you will choose, the more difficult it will be for anyone to guess it. For additional security, you can turn on some security features such as 2FA in your wallet.
Avoid keeping bitcoins with an exchange
There are several online bitcoin exchanges that allow you to store funds with them. You should avoid keeping your money with any exchange as it increases the risk of losing. Keeping your funds with the exchange means that you are offering control on your money to the bitcoin exchange, which not safe. You should not hold that many funds which you need to make a transaction, and once it is completed, transfer your funds back to the wallet.
Bitcoin exchanges are at significant risk of being hacked, and if that happens, you may lose all the bitcoins that you have kept with the exchange. The worse part is that lost bitcoins cannot be irrecoverable, so you must take all the precautions and ever store bitcoins with any online exchange.
Use hardware wallets
There are different types of bitcoin wallets that confuse the users as they are unable to find which one is the safest. If security is your priority, there is no better option than a hardware wallet. A hardware wallet is an offline USB device in which you can store bitcoins and access them by inserting them into any computer system. A hardware wallet keeps your investment safe from all risks, so it is highly recommended. It is almost impossible to hack offline wallets, as even if you connect them to an infected system, your crypto assets will not be harmed.
If you don’t have enough knowledge about hardware wallets, you must gain some information so that you can compare different options and choose the one that offers the most convenient and useful features.