Keeping your cryptocurrency safe is one of the biggest challenges you’ll face as an owner. Because of their anonymous nature, Cryptocurrencies like Bitcoin are extremely attractive to scammers and hackers. That’s why it’s so important to keep your digital money secure at all times. If you own any amount of BTC, then you’re probably aware by now that keeping your private keys to your wallet is a major security risk. Fortunately, there are many easy ways to secure your Bitcoin wallet that protect user anonymity and prevent attacks from outside intruders. In this guide, we’ll explain the top 4 ways you can secure your Bitcoin wallet – from storing it safely to keeping it protected from cyber criminals.
Create a new wallet
Just like you create a new bank account for each new purchase you make, you should also create a new wallet on Bitcoin Buyer for each new purchase of BTC. This process is called “cold storage”, which basically means keeping your BTC in an offline wallet. Even if you’re extremely diligent about regularly transferring your BTC to a cold storage wallet, if your laptop gets stolen or hacked, you still have all of your BTC in your online wallet. That’s because you can’t store keys offline. That means any online hacker could steal your funds at any time. By creating a new wallet, you create a new set of keys that only you have access to. This method is the most difficult and time-consuming way to secure your Bitcoin wallet, but it’s also the safest.
Update the existing wallet
If you have a Bitcoin wallet that’s been open for a while, you should periodically update it. This means you should transfer all of your funds to another wallet and then delete the old wallet from your computer. By updating your wallet, you make sure that all of the addresses in your wallet are known and correct. This is extremely important to prevent a number of problems. First, you want all of your addresses to be known and correct. Otherwise, when someone sends you money, it will end up in one of the addresses that’s not known and correct. As a result, your transaction will go into “hidden” limbo. Second, updating your wallet makes sure that the private keys of your wallet are up to date and correct. Otherwise, if someone steals your computer and finds the original keys from a previous wallet, then they could steal your funds whenever they want.
Install a hardware Bitcoin wallet
Many months ago, most Bitcoin wallet providers recommended using a “cold storage” wallet for keeping your BTC safe. However, as the value of BTC rose, more and more people began to own significant amounts of BTC. That led to a huge increase in the number of cyber-attacks targeting wallets. That’s when hardware wallet manufacturers stepped in to provide “hot wallet” solutions. A hot wallet is a wallet that is connected to the internet, so hackers can easily steal your funds. A hardware wallet, on the other hand, is connected to your computer via USB, so it’s offline and hackers can’t access it. The most popular hardware wallet is the Trezor.
Use a secure browser extension
A secure browser extension is a browser plugin that encrypts and decrypts your data before it gets to your computer. This protects your wallet address and private keys from being seen by anyone but you. There are many browser extension options available. The most popular are: Google Chrome Extension – Cipher Browser Extension Microsoft Edge Browser Extension Opera Browser Extension Firefox Browser Extension There are, of course, many other options, but these are the most popular and widely used.
Keeping your Bitcoin wallet secure is an important aspect of owning any cryptocurrency. When you create a new wallet, keep it offline and protected. When it’s time to spend your funds, then make sure you’re only using a new, secure wallet. When you use a hardware wallet such as a Ledger Nano S, then you can store your private keys on a physical device that will be difficult to access. These best practices will help you keep your Bitcoin wallet secure and help you avoid losing your funds if someone were to get their hands on your computer or find your paper wallet.