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How to maintain maximum security while using bitcoins?

13 Jun 2021 Developer News
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When it comes to bitcoin, security is one of the biggest concerns. Bitcoin is entirely dependent on Internet technology, which exposes it to some online threats such as hacking, phishing, malware, etc. If you are using bitcoins, it is crucial to take all possible precautions so that no hacker can gain access to your wallet and steal your bitcoins. There are several ways through which a hacker can steal your sensitive information and take away your money. If you are planning to do trading, you must visit the Crypto Investor App. But at the same time, there are some tips too that can help you to protect your bitcoins from such threats. You can read below to learn about some of the best security tips you need to follow while using bitcoins.

Have different wallets

Bitcoin is a digital currency, so all the transactions related to it are made through a digital wallet termed a bitcoin wallet. All your bitcoins are stored in these wallets, which makes them the primary target of hackers. So, to minimize the risk of hacking, you must maintain multiple wallets. If you keep all your funds in the same wallet, it will increase the risk of losing all of them in one go. So, it is better if you maintain a separate wallet for your savings and a different one for the day-to-day transaction. You can create unlimited bitcoin addresses, which means you can maintain as many wallets as you want to without paying any extra charges.  It will not only minimize the risks of theft but will also keep your funds well-organized and allow you to keep track of all the transactions and avoid any confusion.

Web wallets are not safe

 A vast range of bitcoin wallets are available in the market, and one of them is a web wallet. It is an online wallet that you can access through any browser and make bitcoin transactions. It offers excellent accessibility as you can access it anywhere, but when it comes to safety, it is not the best option. Most of the web bitcoin wallets are controlled by third parties, and they store your private keys on the server. Your private keys can easily be stolen from web wallets, and if it happens, you won’t be able to recover them ever. So, you must avoid using web bitcoin wallets, and if you are using one, you must keep the smallest amount in so that even if it gets hacked, you will face minimum losses.

Bitcoin is different from traditional payment methods as if you face any fraud and lose your funds, you cannot file a complaint to anyone. Lost bitcoins are irrecoverable, which is why you need to be highly cautious and take all possible precautions so that you don’t suffer a loss due to your negligence.

Cold wallets are best

Bitcoins are stored in digital lockers called bitcoin wallets. There are different types of bitcoin wallets, and they offer varying features. Bitcoin wallets are mainly classified into two types; cold wallet and hot wallet. When it comes to safety, you can trust the cold wallet with closed eyes. They store bitcoin offline and protects them from all kinds of Internet threats. The primary security threats for bitcoins are hacking, and phishing and both of them are not possible if there is no Internet connection. Most of the cold wallets are a type of USB flash drive that you can connect to any system to access the private keys stored in them.

Backup time-to-time

Bitcoins are irrecoverable, so you must not take any risks and backup your wallet regularly. Creating regular backups will keep you on the safe side and will allow you to recover the bitcoins even if something goes wrong. When you are choosing a bitcoin wallet, you must check if it offers you an option for backup. Once you have created a backup, you must store it in an offline location such as a flash drive, hard disk, etc.

Activate two-factor authentication

If you want to add an additional layer of security to your bitcoin wallet, there is no better option than two-factor authentication. It is a security feature that will ensure that even if some gains access to your private keys, he won’t be able to use the funds or make any transactions as the final approval will be needed from your side.

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