It is not enough to download a Bitcoin wallet before you start trading Bitcoins; you need to make sure the wallet is safe from cyber attacks and hacks. For receiving and sending crypto assets you will need a wallet, whether it is an online wallet, mobile wallet, desktop wallet, etc. But cyber criminals will always be on the lookout for these wallets for stealing money, especially when you are making large transactions or holding onto your coins in the long term for higher returns at a later date.
8 Ways to Keep You Bitcoin Wallet Safe:
- Choose a hardware wallet: While there are multiple wallet options in the market it is best to choose a hardware wallet or cold storage wallet as this is more secure. Manufacturers of hardware wallets like Ledger and Trezor can provide different models like the USB devices with preinstalled encryption and security features. Since these will not connect to the Internet, cyber-criminals will find it a big challenge to access the private keys.
- Use secure connections: Public Wi-Fi networks are not secure and you should use your phone’s hotspot instead when you have a Bitcoin wallet in your computer.
- Keep private key offline: This is the best way to protect your Bitcoin wallet; you should ideally store the key physically by writing it down on paper rather than keeping it on any device.
- Use updated software: All operating systems can be vulnerable to malware and it is important to keep them updated with the latest security and anti-malware software so that hackers cannot infiltrate or tamper with the device.
- Avoid suspicious links: A big mistake that many traders make is to click on a link without verifying its authenticity. If you suspect something is wrong, you must always check it first before accessing the URL. Scammers can easily clone websites and use practically identical site addresses to con you.
- Use strong passwords: When you choose to keep your Bitcoins in an online wallet, you should protect it with a robust password. Never use phone numbers or birth dates to create a password. It is best to choose an alpha-numeric combination with special characters. You should also use dual-factor authentication for accessing the wallet. This provides a second-line-of-defence after a strong password.
- Use a separate wallet for other transactions: When you wish to conduct small daily trades, you can create another wallet for this. This is easy to achieve because there is no limit on the number of Bitcoin addresses one can hold. When you sort out your transactions you will ensure that the more important one will be protected better and this automatically protects your entire portfolio.
- Back up the wallet: This will ensure that the password stays secure even if your device crashes or gets stolen. You can use the backup file to access your Bitcoin wallet. For this backup, you have to choose a safe and distinct location.