As a beginner, the first thing you need to do is buy coins as you get started with the cryptocurrency ecosystem. If you have succeeded in buying coins, the next thing you should be bothered about is protecting your assets from loss or theft.
In the article, we will look at 10 ways you can secure your bitcoin and your cryptocurrency wallet in general.
Offline Storage of Your Private Keys
Your private key is the lifeline of your digital assets. No one except you should have access to it. You have to keep your keys safe by using Bitcoin cold storage to store them, for example, on a computer without an internet connection.
When you store your keys in cold storage, they will be free from hackers and malware attacks. You can also write down your private keys on a piece of paper or a USB key.
Make Use of a Dedicated Hardware
You can use a special USB to move data from your computer connected to the internet to the one without an internet connection. Such USBs can be used to store your private keys, it will reduce the risk of viruses and hacker attacks.
Use a Hardware Wallet
Using a hardware wallet is one of the safest ways to keep your Bitcoin safe. Bitcoin Hardware wallets use a USB key with encryption. This encryption is with an onboard computer with its custom operating system just for running the Bitcoin wallet.
Below is a list of the common Bitcoin Hardware wallets;
- Trezor
- Ledger
- BitLox
- KeepKey
Keep Your PC Secure
Make sure your antivirus and other security software are always updated. All your computer needs to get attacks from hackers is just one vulnerability in security. You must be vigilant all the time, stay away from malicious websites, and learn so well about security in cyberspace.
Make use of the Linux Operating System
One of the most secure choices you can make is using the Linux Operating System. Linux has a track record of withstanding any USB attack.
So, if you can lay your hand on a Linux operating system, it is safe. You can use it to transfer transaction details in Bitcoin from an online computer to an offline computer.
Create Backups
Even with Bitcoin, you should learn not to keep all your eggs in one basket. Always back up your bitcoin wallet in a secure place. This move will save you from loss even if your hardware fails, faces unforeseen issues, and encounters human errors.
Furthermore, you can always restore your bitcoin wallet in cases where you misplace your phone or your PC gets stolen.
Keep Your Identity Protected
People with large bitcoin holdings and assets are now being ripped off their assets at gunpoint. If you started with a large number of digital assets, you will be wise if you keep your profile low.
When we talk about staying anonymous and private, it is not for your crypto wallets alone, it is also for you as a person. Do not give out any details that will give anyone access to your personal information.
Keep the answers to your backup questions safe. Stay away from any transaction that requires your private details.
Make Use of an Escrow Service
If you are not sure of the person you are transacting with, then you should involve an escrow service. When you use an escrow service, the person you want to sell to or buy from will send the Bitcoin to an escrow service, when you are sure the item has been received, you will fulfill your part of the transaction through the escrow service too. Both parties in this case will be safe.
Make Use of 2FA (Two Factor Authentication)
Two-factor authentication is a second security layer that makes sure your assets are secure. Using 2FA can get tiring sometimes because you will have to go through the process whenever you want to access your account or carry out a transaction.
However, it is safer and less stressful than losing your assets to scammers and hackers.
The 2FA is an additional security layer that will make sure you enter a verification code sent to a registered trusted device, even after you have typed in your password.
In this way, even if a hacker has your password, as long as they do not have access to the trusted device, they cannot steal your funds.
Make Use of MultiSig
This is a security method made for corporate users, although anyone can use the security method. MultiSig is short for Multiple Signatures, it means that before a transaction will be complete, some selected people will need to permit it by signing.
In this way, funds will be managed properly.
Mentioned below are some wallets that use MultiSig:
- Electrum
- Armory
- GreenAddress
- Coinbase
- Xapo
Starting as a newbie in the cryptocurrency ecosystem can get very challenging, starting from the wallet to choose from, the exchanges to trade with, and so on. I am sure that no beginner wants to start out losing their assets to carelessness.
So, if you are getting into the bitcoin ecosystem, you have to know that your security is of utmost importance.
The blockchain ecosystem is a decentralized ecosystem, it means that power is in your hands. So, as a decentralized user, you will be responsible for your private data and security. If you do not take responsibility for your security, you may lose them to theft and hacks.
From this article, you have seen 10 tips on how to keep your asset secure as a beginner in the bitcoin ecosystem. You have to know that one tip may not be effective as you might not know the route through which your security might get vulnerable. You must know that as a smart bitcoin investor, one security measure is not enough.
You should try more than one security tip to ensure full security. You can start out and not lose any of your assets to thefts and hacks by applying most or all of these security tips in this article.
Bitcoin is getting a lot of attention, and most people are looking for who they can rip other people of their hard-earned money. Don’t be in the number of people that hackers will rob, protect yourself with these security tips.
Learn more:
WHAT WILL HAPPEN IF YOU LOSE OR BREAK YOUR CRYPTO WALLET?
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