Bitcoin enables moving throughout the internet too easily, but anything easy also comes with a risk. As cryptocurrencies are exposed to the internet they can easily be hacked. So it is up to us to secure our cryptos. In this article, we will talk about some Bitcoin security tips that will help you to keep your cryptos safe.
Bitcoin Security Tips For Keeping Your Funds Safe
It is crucial for the user to understand that the risk to their digital currency is not via blockchain but rather via their exchange or wallet. Data can be tracked and stored at the admin level, and that includes your private keys. And in most of the scenarios, hackers access these data as it becomes easy for them to access your data. So here are some bitcoin security tips that include the one dealing with your wallets or cryptocurrency exchanges. So your doubt of how to secure cryptocurrency will be answered in this answer.
Store Your Private Keys Offline
It is obvious that your private keys are your prime crypto lifeline and nobody should know them except you. To ensure their safety, you can store the key in the cold storage of Bitcoin such as in a computer device that has no access to the internet. It will not allow you to fall prey to hackers or malware attacks. Also, the private keys can be stored safely on a paper piece, or a special hardware which is also known as a hardware wallet that looks similar to a USB stick.
Use Hardware Wallets
This is among the most important Bitcoin security tips. You may already know by this time that using a cold wallet is safer than a hot wallet. This is because they are not directly connected to the internet so there are fewer chances of your wallet getting hacked. So if you are wondering how to protect crypto from hackers, this is your answer. There are many good Bitcoin wallets that you can use. Some of them have been listed below.
It may seem like what hackers in any bad movie would state, but it is real that using the Linux operating system is a safer option. Linux has a great record of resisting any attacks that are based on USB so if you can, use it for shifting Bitcoin-related transactions from online to offline devices. It has been proven effective on cryptocurrency security numerous times.
Backups are very crucial as they can save you from your hardware failure. Keeping a backup of all your credentials will help you if you even lose your keys or your hardware gets damaged or your crypto wallet hacked. So always ensure to keep a backup handy.
Protect Your Identity
Violent attacks on BTC holders at gunpoint are rising, so you would be clever to keep a low profile on your activities and holdings of investments. In one of the recent instances, a 38-year-old Dutchman was agonized with a drill in an try to steal all his crypto holdings. Hence, anonymity and privacy are good not only for your digital currency holdings but for your wellbeing and safety, too.
Do not reveal any personal information which can be employed to access your personal data like PINs, email addresses, phone numbers, passwords, and many more. Not even the maiden name of your mother or the name of your first pet, as these are some of the common backup questions. Avoid transactions that are suspicious and that involve the exchange of personal information. If you do not have the right feeling about any deal, do not be afraid to pull the plug.
Use An Escrow Service
When you are required to purchase or sell something and you are not sure who is on the other end, you can always use an “escrow service.”
In these scenarios, the person who is required to do the payment sends their BTCs or other cryptos to the escrow service while they wait to get the item they are purchasing. In the meantime, the seller recognizes their money is safe with the escrow service and sends the agreed product. When the buyer gets the merchandise, they notify the escrow service to finalize the payment. That way, both the purchaser and seller stay safe.
Use 2FA (Two Factor Authentication)
An added layer of security is important for Bitcoin security. Even though it may be exhausting to go through the process of authentication all the time, it is better than losing your cryptos.
2FA (Two factor Authentication) has a second layer of protection wherein after entering transaction details or passwords the system sends in a verification code on your trusted machine so it becomes too hard for hackers to intervene and steal your crypto funds.
Bitcoin or any other cryptos are completely digital. So it is obvious that they are exposed to the internet highly, and anything that is exposed to the internet has the tendency of getting hacked. So it is important for us to keep some Bitcoin security tips handy that can be incorporated when we feel there is a risk to our cryptos. One prime tip here is using a crypto hardware wallet. So if you are wondering should you put your crypto in a wallet. The answer is, you should. But, you should always prefer a hardware wallet. Since hardware wallets are exposed to the internet directly there are fewer chances of your credentials getting leaked.