A Guide for Protecting Your Bitcoin Wallet from Theft

Are you afraid of getting your wallet hacked? If so, here are safety precautions you can apply to protect your Bitcoin wallet from theft.

Bitcoin is considered a very volatile asset, and its different price swings attract both investors and criminals. Since its creation in 2009, users have reported several hacks and heists on cryptocurrency exchanges and crypto-wallets. However, your digital wallet’s main threat to your digital currencies. Here is a guide on protecting your Bitcoin wallet from theft by criminals.

Use Secure Internet

While trading or making Bitcoin transactions, ensure you use a secured internet connection and avoid public Wi-Fi networks. When using your home network, use a VPN for additional security because it changes your IP address and location, keeping your browsing activity safe and private from threat actors.

Maintain Multiple Wallets

You can create as many Bitcoin wallets as you want since there is no limitation to the number of wallets you should own. In the end, you can diversify your Bitcoin investments successfully. You can decide to use one wallet for transactions and keep the rest in the other wallets. As a result, you will protect your portfolio and limit the loss of any breach to your Bitcoin account.

Use a Reputable Exchange

There are hundreds of online exchanges with the same features, making it difficult to distinguish between a reliable and genuine one. Please do your research to find out which exchange had been compromised in the past because hacking reflects poor security practices or vulnerabilities; hence you could be risking your investment. A crypto exchange we highly recommend is bitcoin system. It is a reputable exchange that offers secure transactions.

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In most cases, the cryptocurrency exchange you choose to use does not legally ensure your Bitcoin investment in the case of a cyber-attack. If your exchange gets compromised, you could lose your holdings. It’s wise to choose a business that uses security best practices, requiring multi-factor authentication [MFA] and enforcing TLS/SSL encryption. Also, determine if they have any safety measurements such as balance transfer limits and notifications or the option to freeze the account to mitigate damages. 

Change Your Password Regularly

It is not uncommon to assume that criminals will eventually crack your passwords. To protect your passwords, use a complex one, store it safely and change it constantly. Also, don’t use a similar password on multiple sites you register with, and your password should not include any personal information. 

What’s more, save your passwords in your manager because it’s more secure than keeping them in your browser. Lastly, ensure that you change your password every six months.

Install Updates Automatically

Whatever device you choose to use, keep it up to date with the latest software, whereas you can set updates to install automatically. Ensure that your device and all the applications installed on that device are up to date. What’s more, it is essential if you make use of endpoint security such as anti-malware and antiviruses.

Use a Cold Wallet

To secure your crypto wallet, store it in a cold wallet. While you may need some online for transactions, only keep what you need in the short-term and store most of it offline. The hard crypto wallet is similar to a USB device, and it holds a private key that somebody can use to access your funds. 

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You can set your private key, but you lack access to your investment once you lose it, so ensure you store it very well. Also, avoid sharing your private key with anyone and for secure top-notch security, keep it in a physical space like a safe deposit box.

Final Thoughts

The Bitcoin industry is growing immensely, and it is your responsibility to protect your wallet from criminals by following the above safety precautions.

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