As Bitcoin’s popularity grows and reaches remarkable milestones, it’s necessary to apply precautions by acknowledging some ways of keeping your cryptocurrency secured. So let’s start talking about how to protect your cryptocurrency investments. Let’s see the tips and tricks, prepared by the team of Bitcoin Circuit.
Back up is a must
A backup is what will save you in case of a computer failure. It’s the only possible way to retrieve the currency in your digital wallet. Remember to have a backup of all the wallet.dat files and then save them in a secured location such as USB or a hard drive. This strategy will also help you recover your wallet whenever your mobile or desktop is stolen as long as your keys are encrypted.
Beware of mobile phishing.
The number of people using cryptocurrency wallets continues to increase. As this happens, hackers are more inclined to target investors with mobile phishing campaigns to steal vital information from your wallet, like your login credentials. Whether you are connecting or logging in to your online wallet, always check that the website address is correct. Many scam websites imitate the network of online wallets.
Keep your software updated.
Non-updated bitcoin software is also vulnerable to hacking. The latest version of the wallet software will have a better security system, elevating the safety of your crypto assets. In addition to this, a massive crisis is prevented since the security of your wallet is enhanced. Update your desktop or mobile phone habitually to make your bitcoins safer.
Do not dare to share
Private keys are essential for validation. By authenticating these keys, the person sending or receiving the digital coins proves he is the actual owner of the wallet. You can store your keys in a more secure location or cold storage.
Multi-signature for protection
Bitcoin features a multi-signature property that lets a transaction have multi-independent approvals to be spent. For example, corporations could use this to give their associates access to their funds while only permitting withdrawal if 3-5 signed the transaction.
Some digital wallets provide multi-signature features for users to control their money while averting a thief stealing their finances by compromising a single device or server.
Never fall in love with giveaway scams!
Bitcoin is a volatile investment. Don’t increase your chances of losing money by falling for bitcoin scams. Be cautious and aware of the potential for possible Bitcoin tricks and fraudsters. It will somewhat help if you trust your instincts. Don’t easily be bothered with an offer like, “send us bitcoin and get it doubled.” This type of scam also exists on various social media platforms through the impersonation of celebrities, renowned crypto personalities, and even higher authorities.
Preferably, use a cold wallet.
Cold wallets are not connected to the internet, so they are less prone to cyberattacks. Keeping your private keys in a cold wallet, commonly known as a hardware wallet, is one of the most feasible options you could select since these come encrypted, making your keys secured.
In 2019, the Cryptocurrency exchange BITpoint became the most recent victim of hacking attacks. The transaction took five cryptocurrencies in its hot wallet: Bitcoin, Ethereum, Lirtecon, and Ripple. However, BITpoint confirmed that its cold wallet was not affected.
Small amounts can do
A bitcoin wallet is just the same as an actual wallet. You will consider setting aside some amount of your money and placing it in your other pouches for future purposes. Generally, it is only good to store small amounts of bitcoins in your computer or mobile for daily life uses and keep the remaining part of your finances in a safer environment.
Investing in cryptocurrency requires enough prior knowledge on handling it. Digital assets are not managed by an authoritative organization or even a central bank, so it is your accountability and responsibility to protect your money.
The digital world is expanding as cryptocurrency is continual; therefore, it is your responsibility to protect your digital assets by securing your wallet with the necessary safety precautions. It will also help to keep up to date with the latest prevention techniques and security news.
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