Over the past few years, we’ve seen numerous threats to the security of data stored virtually and also to data in transfer during the performance of commercial transactions. Bitcoin is an innovative payment network which has revolutionized business transactions and get the cyber world by storm. It’s the first “decentralized digital currency.” Just like a regular wallet, you have to take care with your bitcoin wallet since you don’t want to lose your money. It may seem a bit hard to secure a virtual wallet, but if done properly you can definitely secure it. The following guide will tell you how to protect your bitcoin wallet. So, check out and leave comments if you like it!
Ways To Protect Your Bitcoin Wallet
Keep Only a Small Amount of Bitcoins in Your Wallet
In having a wallet, whether a virtual or physical one, you wouldn’t want to have all of your money in it since if you forget your wallet you’re broke. Therefore, it’s advised that you store only some coins on your smartphone or PC which will be your everyday spending money.
Avoid using Wallets on the smartphones
The user should make it a point to never do any transactions through the smartphones as this device is prone to thefts and also to hacking. It’s always preferable to keep the virtual wallet data on devices which don’t have any internet connection, such a storage is known as Cold storage.
Secured backup of the virtual wallet
When the wallet is stored it’s advisable to take daily backups of the wallet by using regular updates, changing its location and keeping the data in encrypted format.
As already mentioned the Bitcoin transactions are irreversible and when the user is into a transaction of buying or selling something it becomes very difficult as the person on the other end is unknown. “Escrow Service” in this case comes in helpful. Here buyer will send bitcoins to the Escrow service and now the seller would send the product across to buyer. Once the buyer receives the product they send a notification to the escrow agent to make the payment to the seller.
Use of Multi-signature addresses
This is mainly useful for high profiles and Corporate. Sometimes if multiple users are using the Wallet then it becomes difficult to make out if some anonymous user misuses the Wallet. Mostly if there are many employees in a corporate firm who need an access to the wallet for making payment then for each user a sub-wallet can be generated which is encrypted and then they can be given access to the main wallet. In this case, all type of misuse can be caught and it’s safe also.
This is a web-based wallet that save your private bitcoin key online. This means your coins are controlled by someone other than you. In addition, it can store large power into the hands of the organization that runs your online wallet because they have the private key. On the other hand, having a web-based wallet is a good for when you want to have access to your bitcoins anywhere at any time.
Here are a some of known online wallet sites: Blockchain, Coinbase, Strongcoin. In these 3, Strongcoin is one of the only that allows you to encrypt your private keys before sending them online, offering a bit more security.
So above is all about How to protect your Bitcoin Wallet?. Hope you like it so please don’t forget to share this post with others.