5 effective ways to keep Bitcoin safe
You can’t reverse a Bitcoin transaction. Therefore, always treat Bitcoin as digital cash.
Human error and theft are the main risks for Bitcoin owners and users. Using Bitcoin comes with numerous benefits. However, Bitcoin users must keep their funds safe. Losing the private keys for your crypto wallet can lead to the loss of your money.
Also, you can lose Bitcoins if you send money to the wrong person. That’s because a Bitcoin transaction is irreversible. What’s more, there’s no authority you can complain to if you lose your Bitcoins. For this reason, try these effective ways to secure your Bitcoin.
- Reduce Counterparty Risk
Most people lose Bitcoin when cybercriminals hack the crypto exchanges, they use to trade this virtual currency. In some cases, a crypto exchange can mismanage customers’ money. A crypto exchange like cryptotrader.software is a helpful platform for trading Bitcoin. That’s because it enables you to access this cryptocurrency or sell it quickly. What’s more, the system uses algorithms to gather, analyze, and interpret market data. And this enables you to make informed trading decisions.
However, these platforms have their risks. For instance, the safety of your Bitcoin might not be the priority of a crypto exchange. Therefore, don’t use an exchange as permanent storage or bank for private keys. Once you decide to use a crypto exchange to purchase or sell Bitcoin, break the amount you want to spend into several transactions. That way, you can reduce this risk. What’s more, use multiple Bitcoin exchanges to minimize counterparty risk.
- Opt for Cold Storage
Cold storage enables you to keep private keys outside the internet because it’s offline storage for Bitcoin. And you can do this using a hardware wallet or paper wallet. Nobody can hack private keys in your cold storage if you use it properly.
The most convenient and most straightforward approach is to use a sophisticated hardware wallet. That way, you can enjoy the security that comes with a cold wallet and a web wallet with one storage method.
- Set Strong Passwords
To keep your Bitcoin safe, create strong passwords for any account related to your funds. Ideally, come up with unique passwords that people can’t guess. A common mistake individuals make is using one password for multiple accounts. That means if a hacker gets the password, they can access several accounts. To secure your cryptocurrency:
- Create a 16-character password.
- Combine symbols, capitals, letters, and numbers.
- Avoid reusing passwords or storing unencrypted copies in digital form.
- Check Addresses Keenly
Before you receive or send Bitcoin, double-check the address. If you don’t do this, you can make a costly Bitcoin address. Therefore, take the time to ensure that you’re sending Bitcoin to the correct address.
Additionally, check addresses for web pages carefully because scam sites can attempt to steal your Bitcoin. A scam website can appear similar to the company site you want to use with only one or two different digits. Also, be wary of social media and email accounts that solicit Bitcoins from you.
- Use 2-Factor Authentication
Activate the two-factor authentication once you register for an account with a crypto exchange. This feature generates an extra password on the device, like a phone, when you log into the wallet account. That means a hacker won’t access and send your Bitcoin without your phone even if they get your username and password.
The Bottom Line
You can’t reverse a Bitcoin transaction. Therefore, always treat Bitcoin as digital cash. Failure to protect private keys is like leaving a cash-filled wallet open and lying in a public place. While Bitcoin allows you greater control of your money, you must be responsible. That’s why you should learn different ways to secure your Bitcoin.