Simple ways of securing your bitcoins

bitcoin

In the internet world, security is just as important as survival. Any breach of your security protocols can signal the end of your company. When it comes to internet security, people remain the weak link. Digital security can be likened to warfare. The people out there seeking to do mischief are quicker, and they maneuver faster than their enemy. Some hackers today go about their trade as a way of life and make good money from it. Here are a few tips on how to secure yourself:

If you do not understand, avoid altogether

Bitcoin trading

As of today, cryptocurrency is still a complicated concept, which many people find difficult to understand. Securing digital money requires a great deal of personal responsibility and skill. If you have no clue of what you are getting into, it’s much better to keep off. It would be unfortunate if you have to wake up one morning just to find some hacker penetrated your wallet and ran off with $10,000 of your hard-earned money.

Many people love cryptocurrencies due to their decentralization. Additionally, there are no greedy middlemen such as banks, or any centralized body which might try to manipulate it. It’s often said with great power comes great responsibility. This being said, if you become a victim of cryptocurrency theft, there will be no one to fall back to. There is no laid out mechanism for disputing such a transaction. If you forget your password, there is no one to offer resets too.

Have a backup

This is the best approach. Most cryptocurrency experts advise their audiences to diversify their cryptocurrency portfolios. Have three to four. If possible, some offline and others online. Just as with the human body, your DNA is replicated in every body cell for a reason. For that reason, one may lose millions of cells but it would not count as all other cells have backup copies. It’s important to note that it’s not the laptop you use, but rather what you create that important. Remember that software and hardware are replaceable, but the data is not.

Have an external drive or extra USB sticks. Storing backup wallets does not take a lot of time. Around 16 GB worth of backup space is good enough. Ensure that you place your offsite backup somewhere safe like a safety deposit box. Additionally, you can also back it up to a cloud. Do not entrust anyone with the responsibility of managing your private keys.

Encrypt your data

You can add an extra layer of protection to your wallet by having encrypted file containers for your wallet passwords and backups. Do not store your wallets and passes within a single virtual file store. This will only make it easier for an attacker to access your wallet and its passwords. Use different passwords for your containers.

Wallets everywhere

bitcoin 2Your first instincts may be to have a core wallet. Most projects have them. This becomes highly essential for cold storage where the user adopts an offline buy and hold approach. When your coins are offline for several months, the file format remains incompatible with other coin wallet versions. Core wallets are more conservative and stable. Unfortunately, for everyday usage, you might find the core wallets a little clunky, slow and frustrating. Imagine having to wait for over twenty minutes for it to sync as you try sending coins to an exchange.