Bitcoin, the oldest and largest Cryptocurrency by market cap, has seen phenomenal growth over the last couple years and with that growth the added danger of storing large sums of money, on an online exchange wallet or mobile phone. In most cases, this is not a problem for smaller amounts of not more than a couple dollars but with the rise in the Bitcoin price over the last few months it’s best to revisit some of the best security practices to keep your funds “safu”.
Make sure no one has seen you write the seed words down. Be sure to store them in a safe place in case you lose your original wallet, you can then easily restore the backup and safely recover your Bitcoins. Just remember if someone else finds your backup it’s as good as gone! Find out more about how to store your bitcoins in this video:
Whilst it’s perfectly okay to have Bitcoin on your mobile phone wallet or on your computer for smaller amounts, for larger amounts it is best to keep your money in cold storage. Cold storage is when your wallet and its keys are kept offline with no connection to the internet. Good examples of Cold storage Bitcoin wallets are Paper Wallets, an encrypted flash drive or a specialty device like a Ledger or Trezor which also keep your private keys offline.
Exchanges are targeted every day by hackers, there exists the very real risk of your wallet and even the exchange itself getting hacked. Rather than keep your Bitcoins on the exchange once you have bought or traded them, rather send them to your cold storage device where you can control your private keys and control your own security.
If you do have funds on an exchange or an online wallet service then take some simple but effective precautions, enable 2FA authentication and use a unique strong password. Never use the same password for other services or accounts otherwise if someone hacks into that account they will also be able to gain access to your Bitcoin wallet. You can’t think of any strong unique passwords? Easy! There are many password services out there you can try.
This one sounds simple enough and is probably the most overlooked! The internet is full of weird and sometimes nefarious people who can access a vast amount of information on you with just a few clicks of a mouse. Avoid talking on forums about how much Bitcoin you have bought, or how much you have traded or saved – You never know who may be watching or reading your posts and comments, most of which will remain available online for a very long time. Avoid being scammed by simply guarding your own privacy.
It’s important to note, Bitcoin is the next stage in the evolution of value transfer and wealth storage but this new form of money is áctually a bearer instrument, meaning that whoever holds the keys holds the money, so with this great power and personal sovereignty in your hands comes great responsibility. Be careful and take your time to make sure you keep your bitcoins safe. For more information on keeping your Bitcoins or Cryptocurrency safe head on to our Video Learning Portal here.
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