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Cyber Security Essentials: 5 Essential Principles to Keep Your Bitcoin Wallet Safe

Cyber Security Essentials: 5 Essential Principles to Keep Your Bitcoin Wallet Safe

bitcoin wallet

A Few Essential Principles to Keep Your Bitcoin Wallet Safe

The price of Bitcoin reached a high point of $19,000 in December of 2017. In August of 2017, the price of Bitcoin was $4,400. This rapid increase in value is part of why this cryptocurrency has continued to grow in popularity. With more people purchasing Bitcoin, it is a worthwhile idea to look at how to keep that investment safe. The three main types of wallets that are used to store the Bitcoin information are desktop, mobile, and web-based. Each of these platforms can be susceptible to security concerns if steps aren’t taken to protect them.

How Do I Invest in Bitcoin?

The first step to protecting something of value is to secure the item itself. There are many options to learn about where to buy bitcoin online, and many of them work in similar ways. There are Bitcoin lenders, exchanges, and even ATM locations now where the currency can be obtained. In each scenario, cash is exchanged for a certain amount of Bitcoin. The amount is based on the value of the Bitcoin at the time of the transaction.

Use Offline Storage

With paper bills and a regular wallet, it would be unusual for someone to have a huge sum of money in their wallet. The same concept holds true when it comes to a Bitcoin wallet. Using an offline storage space, known as cold storage, is a highly recommended method of keeping Bitcoin safe. Taking a small amount of the currency to keep in an online wallet may be needed for trading or day to day use, but the rest should be kept offline. The key to offline storage is that the storage space or device is not connected to a network, thus greatly reducing the chances of theft. A paper wallet is one method of offline storage. This involves printing out the information stored in the digital wallet including the public and private keys. Another option is using a USB device to store the Bitcoin information. A third option is a hardware wallet. This option seems to be one of the most popular methods today. A hardware wallet is a small device that is designed specifically to store Bitcoin information. They are waterproof and virus proof and are proving to be a very safe storage method.

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Make a Backup

As with most digital information, making a backup of the Bitcoin wallet is another strategy to keep the currency safe. A backup can protect against a computer failure or some other mistake that is made. One key is to make an entire backup of all the Bitcoin information, including all of the wallet.dat files. Once the backup is made, the next step is to store that backup in multiple locations. Using a USB device, a hard drive and other secure locations is the best way to protect that information. A final step that can be taken is to encrypt or password protects the backup. Taking all of these steps can be the difference between recovering the information and losing out on a sizable investment.

Another measure in Bitcoin security that is being used more often is the requirement of having multiple signatures for any transaction to take place. This can be set up when the Bitcoin account is initially established. A typical arrangement could be three of five people need to approve of a transaction before it can happen. This will stop any transaction where only one controller is trying to make a transaction. The use of Bitcoin continues to grow in popularity and that means that security concerns are rising as well. Taking a few steps can ensure your Bitcoin stays safe and is able to be used in an effective and efficient manner. 

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