Just like how you keep your cards or cash in a physical wallet, bitcoins are stored in a wallet that can be online or web-based. Your bitcoin wallet can also reside on your mobile device or computer. But, you can also keep your wallet safe by printing the private keys and addresses on paper. How safe your bitcoin wallet depends on how you manage it. Each wallet has a set of private keys you will use for accessing the digital currency. But, you will have to keep these keys safe because you won’t get your bitcoins again without them. Also, you can lose your bitcoins through computer malfunctions and hacking. Thus, if you are not ready to sell bitcoin online at Quebex and just store it in a wallet, know how to protect your bitcoins:
Use Cold Storage Wallets
Cold storage refers to securing bitcoins offline. Cold storage wallets are less susceptible to hacking since they are not connected to the internet. But, because it is usually inconvenient to access a cold storage wallet, you must consider splitting your bitcoins. Thus, try to store a small amount of bitcoins in a digital wallet. Popular cold storage methods include paper wallets, storage devices such as a USB drive, hardware wallets, and sound wallets.
Back up your Bitcoin Wallet
This is important to ensure you don’t lose your bitcoins if your computer fails. A history of regular backups might be the only way to recover your digital wallet currency. Store the backup at several secure locations like on CDs, hard drive, or USB. Also, the backup should be protected with a strong password.
Update your Software Regularly
A bitcoin wallet that runs on non-updated bitcoin software can be a sensitive target for hackers. Software providers will release a version that has a better security system in place, thus, increasing your bitcoins’ safety and security. You can make your bitcoins safer by regularly updating the operating system of your device or software.
Encryption means using a password to accessing your Bitcoin wallet. It offers an extra layer of security to a certain folder, message, or file because only someone who has the right key to it can lock it. Encryption is especially important if you are storing your bitcoins in digital wallets. Aside from using a strong password, you must memorise or keep it in a safe spot because recovering passwords with Bitcoin is very weak.