24 Nov Best Ways to Secure your Bitcoins
It is extremely inconvenient to face the constant moving prices of Bitcoin and then, face the threats of losing them at some point. The most inconvenient part is that these threats aren’t static; they are dynamic and move with the pace of technological advancements.
True, cryptocurrencies can feel secure in themselves especially with their decentralised nature, but the recent hacking episodes on crypto exchanges is enough proof that this security does not cut across their holders.
So, be it a phishing scam attempt, the set up of a fake wallet to coerce crypto owners into giving up their coins or malwares, there’s always something to be on the lookout for. Now, though keeping your Bitcoin completely secure is no easy feat, with a few practicable steps, you can be sure that your coins will remain where they belong.
Keep your Private Keys Private
One of the cons of modern technology is the fact privacy is not exactly an easily achievable thing anymore. Someone in one part of the world could just one day look up your details and decide to take over your accounts.
Hence, it is paramount that when on the internet, you learn from the cryptocurrencies you are trying to keep safe and remain anonymous. Nowadays, a tap or a click on the right link could get your personal details in the wrong hands and Voila! your private keys are out of your account.
Hence, it is crucial to secure your private keys in such a way that no one can link them up to you. You could choose to create a separate email address that cannot be in anyway linked up to you or bolster your control over your accounts by adding extra defences such as a password and constantly changing it.
Also, carefully screen the sites and offer your visit and accept respectively and be careful not to reveal your crypto keys to anyone. You could try your hands at encryption, just let them remain private.
Use a Hot Wallet
Cryptocurrency exchanges offer their customers ways to take the security of their coins off their hands with hot wallet services. You could choose to store your Bitcoin in hot wallets and in truth; this is one of the easiest route to take in securing your coins.
You could see hot crypto storage as the proverbial killing of multiple birds with just a slingshot. Crypto exchanges offer you a means of buying and selling your cryptocurrency. Thus, using a hot wallet service means that you get to keep your cryptocurrencies safe and easily trade them.
Try out Cold Storage
No, I don’t mean storage in a cold-room. It simply means you keep your Bitcoins and private keys offline. You see, though hot wallet services are quite easy to work with, cyber security issues faced by these exchanges has proved that hot wallet services aren’t exactly infallible.
When these exchanges get hacked or threatened at any level, because they are centralised, you stand the risk of losing all your investments. Hence, a cold wallet service is one sure way to avoid being a victim and keeping your Bitcoin safe.
One of the key ways to adopt cold storage is through the use of a physical device (more like a hard drive) that keeps your private keys and other relevant information offline. So, short of being physically burgled, the chances of losing your coins are remotely small.
Hardware wallets like Ledger Nano S, KeepKey and Trezor offers optimum security services. What’s more they are easy to set up and not very pricey. All you need with them is a security number as well as a recovery key that allows you afford the possibility of losing them.
You could also choose to go analogue. Forget cloud networks for now, just keep your information documented on paper and file them. Save physically losing them, you are perfectly safe from digital prying hands. Be sure to make as any copies as you can and keep them in tamper-proof safes.
One of the cons of using a cold storage is that there are tendencies of encountering troubles in validating transactions. A viable solution is to keep a little amount of Bitcoins you won’t miss in the case of cyber security issues, in a hot wallet or even a wallet app. As such, you don’t miss out on using your coins for whatever transactions you need them for.