There are a lot of ways to lose your Bitcoins, and it can be easy for beginners to fall into some common traps. Here’s a list of 10 tips that will help you avoid these pitfalls and keep your bitcoins secure.
Cryptocurrency is a digital currency that uses cryptography to secure transactions, control the creation of new units, and verify the transfer of assets. It’s not hard for someone to become a cryptocurrency investor. But it is important to be aware of security risks when investing in cryptocurrencies Read more in detail here: cryptocurrency for beginners.
If you’re new to Bitcoin, the time you spend learning about the currency should be your first investment.
Learn how to buy, store, and use bitcoin securely.
As you may already know, Bitcoin is fundamentally different.
It’s unlike anything you’ve seen or experienced before. It does not, in any way, shape, or form, exist.
In the world of cryptocurrencies, if you lose your private keys, you may lose your Bitcoin forever.
If you lose your backup phrases, there is no bank or customer service that can assist you recover your money.
There are no “help” or “forgot password” buttons.
While Bitcoin gives people back power over their money, it is also your responsibility to protect your digital assets from any attacks or human error.
I recognize that it seems to be a tough task.
But don’t panic; we’ve come up with a few quick and easy methods to keep your Bitcoin secure.
Whether you’re new to cryptocurrencies or an experienced user, these are all things you should do (and not do) to protect your bitcoin investment.
Even if you just invest in one kind of currency, you will almost likely need several wallets for a variety of reasons.
Do you carry your whole life’s worth of cash in your wallet?
If you don’t store all of your fiat money in one place, you may want to split your Bitcoin and other cryptocurrencies across multiple wallets.
There are many different types of crypto wallets, each with its unique set of features, functions, and benefits.
Mobile wallets, desktop wallets, paper wallets, and hardware wallets are just some of the options. You can read more about the many types of Bitcoin wallets here.
Because there is no such thing as a “one-size-fits-all” wallet, crypto investors have taken to storing their funds in several wallets.
A mobile wallet may be used to make little purchases or trades on a regular basis.
To keep large amounts of money, use a cold wallet like Ledger.
To reduce the risk of losing money in one of your wallets, you should spread your crypto assets over several wallets.
There is one catch, though: the more wallets you have, the more responsibility and attention you’ll have to spend to keeping track of, monitoring, and safeguarding them.
2. Choose a Strong Password for Your Cryptocurrency Wallet.
If you store your money online using a crypto wallet, a strong password may be your first line of protection against cyber-attacks.
For various services, such as Facebook, email, and an exchange wallet, use separate passwords.
If you use the same password for several websites, hackers would be able to quickly identify you.
Your personal information may be compromised, and hackers could get complete control of your cryptocurrency wallet, including all of your funds.
Create a password that is lengthy, strong, and unique for each service. For further security, use two-factor authentication (2FA) on all of your online exchange accounts.
Two-factor authentication (also known as 2FA) provides an additional layer of security to your wallet. To enhance your security, you should activate 2FA on all of your exchange accounts.
Every time you log in to your exchange after activating 2FA, you’ll be prompted to enter both your wallet password and a one-time passcode (OTP) as a second form of confirmation.
If you have to go through two-step verification to access your wallet, hackers and criminals will have a tougher time taking your money.
Use two-factor authentication (2FA) for additional security:
- Install a free authenticator app, such as Google Authenticator or Authy, on your phone.
- Go to your e-mail account and sign in.
- From the security settings, choose “Two Factor Authentication.” On the exchange, a QR code will be shown.
- Open the authenticator app on your phone to scan the QR code.
- When you link your exchange to the authenticator app, it will automatically generate a 6-digit number every 30 seconds.
- This 2FA verification code will be required when you log in to your exchange or wallet.
- Enter the code and click the Verify Code button to confirm it.
Never leave your money on a trading platform for longer than is strictly required.
Set aside sufficient funds to trade, and then withdraw your funds from the exchanges after the deal is completed.
This is something I cannot overemphasize.
Many people start their Bitcoin adventure with cryptocurrency exchanges like Coinbase. As a consequence, many individuals would just buy something and then abandon it on the website.
This is an abominable act that must be avoided at all costs!
You’re putting your Bitcoin ownership at risk if you keep your crypto money in free wallets on controlled cryptocurrency exchanges!
You’re basically giving these third-party companies, who are vulnerable to cyber-attacks, access to your hard-earned money!
Avoid using online wallets if at all feasible.
It’s entirely okay to have small quantities of bitcoin on your phone for everyday transactions or trading on an exchange.
However, if you want to store significant amounts of Bitcoin for an extended period of time, you should use a hardware wallet such as the Ledger Nano.
By far the safest way to keep Bitcoin and other cryptocurrencies is using a hardware wallet. So yet, no verified instances of Bitcoins being taken from a hardware wallet have been reported.
This is an excellent place to start if you don’t already have a bitcoin hardware wallet.
Note: Always buy a brand new hardware wallet from the authorised store.
Avoid buying from a third-party seller who may offer you a better deal. If the device is tampered with, you may lose all of your hard-earned money.
Regardless matter whatever wallet you choose, your private key is the most important component. Private keys are secret codes that let you to instantly transfer coins, sign transactions, and manage all of your funds.
Your Bitcoin is only safe if you have control over your private key.
That’s why having your own hardware wallet is so important, since it allows you to generate and keep your own private keys.
That is, anybody with your private keys has the ability to access your box and steal your bitcoins.
As a consequence, the primary priority should be to keep your private keys safe, offline, and hidden.
After you’ve chosen a wallet for sending and receiving bitcoins, you’ll need to back it up to protect your money.
If your device is lost, stolen, or destroyed, your backup allows you to recover your keys and regain access to your bitcoins.
This backup process is simple and straightforward. All you have to do is write down a recovery phrase, which is a collection of words that is unique to you (a.k.a recovery seed).
When putting up a new Ledger Nano, for example, you’ll need to record a 24-word recovery phrase. As long as you have the 24-word recovery seed, you may recover all of your bitcoin assets in a new wallet.
Keep in mind that your recovery seed should not be saved on your machine. Don’t snap a picture of your secret keys using your phone.
If malware infects your computer, the attacker has access to all sensitive information, including your password and recovery phrase.
Keep your recovery phrase safe and off-site to protect yourself from fire, water, robbery, and other threats (e.g., write it down on paper).
You may use Multi-signature (or MultiSig) as an extra layer of security in addition to 2FA to prevent a thief from stealing your digital assets.
Multiple people will need to sign in order to complete a multi-signature transaction.
Take a minute to think about it. Cold wallets may have faults or be lost, while hot wallets may be easily hacked.
Only ONE person holding the key is needed to execute a typical Bitcoin transaction. This is very hazardous.
Security is greatly enhanced when several users’ permissions are needed before anybody can access the wallet, especially when the wallet is compromised.
MultiSig is supported by a number of wallets, including:
A Bitcoin wallet is a piece of software that keeps track of both your private and public keys.
You should update your wallet software on a regular basis to guarantee you have the most up-to-date security, bug fixes, and useful features.
You’ll also need to upgrade the software on your phone or computer to the most current version to keep your money safe.
The recommended practices for safe computer and Internet usage are as follows:
- Avoid visiting any potentially hazardous websites.
- It is best to avoid downloading any suspicious files, software, or apps.
- Verify that your antivirus software is up to date.
- Please refrain from clicking on unrelated links.
- Double-check URLs wherever possible, especially if you’re using a web-based wallet.
- To access your wallet, don’t use a public WiFi network or a public computer.
- Check to check whether the website you’re on is secure. In your browser’s top address bar, look for “https://.”
Did you know that all Bitcoin transactions are permanently recorded and available to everyone online?
If they have your bitcoin public address or can link your identity to a transaction over time, they can see your bitcoin balance, when and what transactions you’ve made.
If you want to send large amounts of cryptocurrencies and want to protect your identity, consider using a coin mixer or Bitcoin mixer.
Transactions become increasingly difficult to trace and anonymous when a coin mixer destroys the connection between a Bitcoin sending and receiving address.
That’s all there is to it! Here are 10 easy methods to keep your Bitcoin and other cryptocurrencies safe from theft, cyber-attacks, and other dangers.
While safeguarding a Bitcoin wallet necessitates a somewhat different approach, it shouldn’t be difficult if you follow these 10 best practices.
Spend some time studying about how to improve your security, privacy, and overall safety on all of your devices.
I hope you find this compilation of Bitcoin resources as helpful as I did.
Do you have any crypto security advice that you think everyone should know about? Please let us know what you think in the comments area below.
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Following that, I’ve chosen a few novels for you to read:
I’m completely fascinated with making money on the internet.
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The cryptocurrency investment is a new and exciting market that has been gaining traction over the past few years. In this article, I will be giving you 10+ Bitcoin security tips for beginners.
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