Original article: http://finance.alot.com/personal-finance/protecting-your-bitcoins–1871
Regardless of whether you have been there since the birth of Bitcoin or you have gotten into BTC mining very recently, keeping your Bitcoin secure should be on the top of your list of priorities given the vast popularity the virtual currency has gained over the last couple of years.
Bitcoin is the hottest and most famous cryptocurrency currently on the market. In a nutshell, cryptocurrencies are virtual currencies developed utilizing multiple virtual blocks whose algorithms need to be deciphered in a process known as mining, which is how people unearth Bitcoins. Understanding how to keep your Bitcoins safe and secure is an integral part of safeguarding your investment.
Have More Than One Wallet
A Bitcoin wallet is the equivalent of an online checking account used to store your BTC. Having numerous virtual wallets is a practical and efficient way to store your BTC in a safe and secure space in an attempt to prevent frauds and hacks. Due to Bitcoin’s sudden wave of popularity, it is important to weigh the option of taking advantage of more than one wallet to store all your Bitcoins to circumvent the potentiality of a scam or hack.
Keep the Amount of BTC You Keep to a Minimum
It is ideal to restrict the number of Bitcoins you store in any single wallet to lower the risk of a loss. Keeping the amount in each wallet is not unlike holding only a certain sum of cash on you when you are out and about in real life.
Make Sure Your Password Is Strong
Always make sure that your password is strong enough to keep your BTC safe. It is also essential to have one specific, hard-to-crack password that you do not use for any other virtual services for your BTC wallet account, which ultimately lowers the risk of getting your wallet hacked. Another important recommendation is to switch up your Bitcoin wallet passwords regularly for an extra measure of safety.
Use an Encryption
Encryption for a BTC wallet enables you to set up unique passwords that need to be input before you can make any type of transactions. Encryption applications and assistance are easy to look up and implement online, most of which can be downloaded via various app stores.
Only Opt for Authenticated Exchange Services
Every time you want to buy or sell BTC using your Bitcoin wallet, make it a habit to check the reputability, legitimacy, and ratings of the service or platform you are about to use. Choosing only verifiably legitimate and reputable services for your Bitcoin transactions dramatically lowers the risk of fraudulent activities.
To sum up, the more knowledgeable you are about safeguarding your Bitcoin from scammers and hackers, the easier it gets to get a handle on the management and upkeep of your virtual wallets. Having more than one wallet and using encryption for every transaction are two critical pillars of keeping your BTC funds safe and secure.
Featured Image: Depositphotos/© PromesaStudio