Digital currency such as Bitcoins can be vulnerable to theft.It's not as vulnerable as cash you may carry around in your wallet.Basic safety measures that don't require a lot of tech know-how can be used to adequately protect your Bitcoins.If you're worried about the security of your investment, you may want to keep it offline.
Step 1: Carry small amounts.
If you carry a physical wallet in your pocket or purse, you should treat your online wallet the same.Don't carry a lot of Bitcoins online, it's like carrying around thousands of dollars in cash.Unless you're planning on spending or trading them immediately, don't keep more Bitcoins in your wallet.If you're keeping most of your Bitcoins online, use several different services so that you don't keep all of them in one place.You won't lose everything if you are targeted by hackers.
Step 2: Change the password frequently.
Password is perhaps the simplest form of security.It should be long with both capital and lowercase letters.It's easy to remember if you make it difficult to guess.If you have a password manager on your computer, you can use it to suggest and keep passwords.Passwords will be automatically entered for you.Make sure you have a strong password for your computer if you use a password manager.
Step 3: For online accounts, set up a separate email account.
Before setting up an account with an exchange or online wallet service, you should have a unique email address.Random letters and numbers can be used as the address.Personal email addresses and other information about you won't be given to hackers if they get user data from the service.It is possible to keep as anonymous as possible on the exchanges.
Step 4: Two-factor identification can be used with online storage.
Before your wallet can be accessed or a transaction completed, you must verify your identity with another device.The wallet service usually sends you a code.The service will usually send a code to your phone in a text message.You have a short time to enter the code.When setting up two-factor identification, make sure the code is sent to a device that you have access to, and that no one else uses it.
Step 5: It is advisable to check the security of online services.
Users of the virtual currency have been affected by security breeches that cost them thousands of dollars.It is not possible to get back Bitcoins that have been stolen.The service's architecture will be exploited by hackers.You don't have a way of knowing if these vulnerabilities exist as a user.The site's history and reputation can be evaluated.Online wallet and exchanges don't offer the same levels of protection as banks.They are not subject to the same regulations.When storing your Bitcoins, keep that in mind.
Step 6: You should keep your software up to date.
Software manufacturers push out patches and security upgrades to address vulnerabilities that could be exploited by hackers.You should download updates for your software on a regular basis as well.Automatic updates are the easiest way to make sure your software is current.When the automatic update won't interrupt your use of the device, set it to run.
Step 7: Multiple signatures are required.
Exchanges and wallet services allow you to select several people who must be contacted for approval before a transaction can take place.The risk of theft is decreased because no one person controls the transaction.It is more difficult for you to complete a transaction because you have to get approval from everyone you've selected.
Step 8: You should protect your phone.
Many basic security measures focus on your wallet and the devices where you access it, but your phone can also be used to gain access to it.A hacker can port your phone number to a device they control and use it to steal your identity.Find out what security options are available by calling your mobile phone provider.Don't give someone your phone number online or talk about Bitcoins in public, especially on social media.
Step 9: You should keep your wallet and private keys safe.
Your keys are turned into a code that can only be deciphered by your password.You can enable encryption with most wallet services.You can use your computer to protect files.Under your security or advanced options, look.
Step 10: You should protect your entire system.
You can provide extra protection for your Bitcoins by encrypting any device that you use for transactions.Any connected device that can be used to access your computer should be locked up.If you want to prevent anyone from accessing any data stored on your network computer, you need to protect your wireless network.
Step 11: Make backups.
Your keys should be backed up on a regular basis.If a backup is destroyed, you are vulnerable.You can make backups using different media.You can use a disc for one backup and a thumb drive for another.DropBox is a cloud storage system that you might consider storing a backup on.Cloud systems can still be vulnerable.If you store a backup on the cloud, make sure it's secure.
Step 12: You should store your backups in different places.
Your backups are vulnerable to physical destruction if they are on a physical storage device.A thumb drive can be damaged.If one of them is destroyed, you still have a good backup.Make sure you keep at least one backup off-site.If you want to keep a backup at your bank, you could open up a safe deposit box.It's possible to keep a backup at the home of a trusted friend or family member.
Step 13: Offline signing transaction can be used.
The bulk of your Bitcoins are kept on a computer that isn't connected to a network.The offline computer needs to be used to sign the transaction.You would use your online computer to initiate a transaction and then save it on a thumb drive.You use the thumb drive to sign the transaction on the offline computer.To complete the transaction, return the thumb drive to the computer.
Step 14: You can record your wallet on a disk.
Not everyone can keep one of the two computers offline.Creating a sound wallet is a good idea if offline transaction signing isn't appealing to you.Your private keys can be recorded on a CD or even a vinyl record with a sound wallet.An app is used to decipher the files.If you make a lot of transactions, this may not be the most convenient option.
Step 15: You can buy a hardware wallet.
Hardware wallet are more popular for keeping your money safe.These small devices are meant to be a wallet.They can't connect to a network and no software can be installed on them.If you lose a hardware wallet, you can still backup it.Multi-signature verification is one of the security methods that can be combined with a hardware wallet.Hardware wallet can be ordered online.Most popular brands cost around $100.
Step 16: It's possible to try a paper wallet.
If you're not convinced that cold storage is right for you, a paper wallet can allow you to keep your Bitcoins offline while at the same time being able to access them quicker.If you have a paper wallet, your keys can be turned into two codes, one for your public and private keys.You can add Bitcoins to your wallet by scanning the codes.If you're using a paper wallet, make sure to keep your print-out safe.Anyone who finds them can use them.You can take out a safe deposit box at the bank.