The growing popularity of Bitcoin is no surprise. Its driving force is the realization of the value of Bitcoin and its other benefits. For an ordinary user, Bitcoin provides a more convenient way to pay for goods and services. It also provides a cheaper, faster, and safer way to send money abroad, which is why you need to secure your Bitcoin wallet.
For investors, Bitcoin is an excellent digital asset. The value of Bitcoin is highly volatile. However, overall, it keeps increasing. It reached its highest value in November 2021, when the price hit $68,000. For someone who had bought enough Bitcoin a year earlier, the profit from selling some of it at this time would have been massive.
Before we look at how to secure your Bitcoin wallet, have you heard about the incredible crypto trading software Crypto Superstar?
Security of Bitcoin Wallet
Bitcoin wallets have become primary targets for hackers intent on stealing Bitcoin. If a hacker can access your Bitcoin Wallet, he can steal all your Bitcoin. The growing value of this crypto is a significant driver of increased cyberattacks on Bitcoin wallets.
Additionally, different entities from the Bitcoin blockchain network provide crypto wallets. And this means that while your Bitcoin may be safe within the blockchain network, which is almost impossible to hack, it does not enjoy the same level of security as it is in your Bitcoin wallet. Moreover, your provider may not provide insurance to cover theft cases due to hacking.
So, with the increasing security risk and the fact that you may not have insurance coverage, you need to take several measures to ensure the security of your Bitcoin wallet. Overall, your conscious alertness and awareness of security issues will be critical.
Type of Wallet
Bitcoin wallets come in two versions. Hot wallets that connect to the internet. These online applications, platforms, and website allow you real-time access to your Bitcoin. Cold wallets are offline-based and store the users’ private keys offline.
It is vital to have both types of wallets. A hot wallet is convenient because of its ease of access from anywhere. However, it is more vulnerable to cyberattacks. A cold wallet is not susceptible to cyberattacks because it doesn’t connect to the internet. You can store part of your Bitcoin in a cold wallet for better security.
Secure Passwords and Authentication
No one can access your Bitcoin wallet without your private keys. Therefore, it is essential to protect your private keys . One way of doing so is to use strong and unique passwords that you will need to access. Additionally, when using your smartphone or computer, ensure that the device is locked and will require a password, fingerprint, or face to open. It is also essential to install the latest versions of antimalware to protect against malware attacks.
Backup
There have been reports of people forgetting their private keys and hence losing their Bitcoin since they cannot access their Bitcoin wallets. It is vital to back up your private key in a different place to avoid such. For example, you could have a paper backup that you will hide from anyone else. If you forget your private keys, you can get them back by fetching the paper backup.
Conclusion
The security of your Bitcoin wallet is primarily your responsibility. Be proactive in ensuring that hackers don’t get past you and you lose all your Bitcoin. Keeping yourself updated on the emerging trends in Bitcoin wallet security is crucial.
