It’s amazing to think of how far Bitcoin has come since its inception in 2009. Prices have peaked late in 2017, and although this year hasn’t been the same roller coaster ride, there are still plenty of reasons why you should hold on to your digital assets. Just be sure you know how to keep your Bitcoins safe by following these 10 tips:
1 Avoid using online wallets
If you’ve invested in Bitcoins for some time now, then you should know the purpose behind online wallets. These digital wallets aren’t meant to keep your coins for an extended period. They’re fine if you’re transferring your assets from one place to another but move them to an offline wallet to avoid getting hacked.
2 Limit access to corporate Bitcoin wallets
Are you accepting Bitcoin as a form of payment in your business? If so, then you should be careful with who you give access to your Bitcoin wallets. Remember that Bitcoins are anonymous in nature, so it can be tricky to track down where your coins have gone in case of a cyber-attack. It’s best to limit access to employees you trust the most.
3 Use secure trading platforms
Day trading can be profitable when done correctly. However, you should avoid using trading platforms that haven’t demonstrated credibility and security. You should limit your choices to cryptocurrency trading robots such as Bitcoin Code which has proven to be safe and secure.
4 Know when to use hot and cold wallets
Hot wallets are digital wallets that remain connected to the internet. Again, these wallets are exposed to more vulnerabilities than cold wallets. You should use cold wallets for storing Bitcoins for a long period.
5 Keep your private keys offline
Regardless of the kind of Bitcoin wallet you’re using, make sure that the private keys are kept offline. The last thing you want is hackers to get access to your keys, leaving the door open for all your coins to get stolen.
6 Use a dedicated Hardware
This may sound costly, but it helps a lot in keeping your digital assets safe. Consider using dedicated hardware for doing all your cryptocurrency transactions. This includes using a dedicated USB key each time you move data from your online computer to an offline computer.
7 Switch to Linux on online and offline computers
Even if you’re using a dedicated USB key, you may still be exposed to security risks especially if you’re running Windows or Mac. Compared to these two operating systems, Linux has the better track record regarding resisting USB-related attacks.
8 Keep a secure backup offsite
What will you do if your computer breaks down or gets stolen? Surely, you’d want an offsite backup, so you can still have access to your digital coins. Be sure that you back up your digital wallet elsewhere. Consider having multiple backups and then keeping them in different locations.
9 Learn fragmented backups
A backup of your seed may appear to be enough, but to add an extra layer of protection, you’d want to have multiple copies. A fragmented backup is the best way to go if you worry about the physical security of your backup. This involves splitting the seed into six fragments which you can store in different locations.
10 Use a secure hardware wallet
For utmost safety and security, invest in a hardware wallet. This wallet uses a USB key and a dedicated-on board computer with its operating system.