Five steps to security: how to protect your cryptocurrency wallet
Switzerland has a special bank for bitcoin storage. It is a data center with secret coordinates located in the mountains. Digital millionaires keep their cryptocurrencies in its isolated rooms: without unauthorized access, off-line, and under twenty-four-hour guarding. However, there are no prizes for guessing that few people can afford such a storage. So, if you have only several digital coins, their security is totally in your hands.
We will tell you how to protect your wallet and not to allow lawbreakers to steal your cryptocurrencies.
Step 1. Right choice of storage place
Some types of wallets are initially less safe than others. Mobile and online storages (everything kept in the cloud service) can be hacked. Software wallets are more safe: they store data on your PC. And, finally, the most reliable wallets for bitcoins are the off-line ones: on a separate memory card or disc integrated with the special software. It is the so-called cold storage. If you choose this way, you should be very careful with the data storage device; do not lose or damage it.
The most unreliable storage place is an exchange where you buy cryptocurrency: these resources are frequently hacked. Besides, they can be closed or suspended because of legislation challenges. However, if you conduct a lot of cryptocurrency transactions (for example, exchange trading or ICO token purchases), some of the assets should be in easy access. Therefore, the best possible way is to divide your bitcoin capital: for instance, you can keep some funds on the exchange, others on the mobile or online wallet, and store core assets using the cold method.
This video will allow you to see wallets – market leaders – and discover their pros and cons.
Step 2. Make backup
Life sometimes throws us a curve we are not ready for. Even if you keep your memory card with bitcoins in the bank, there is no guarantee that the building won’t suffer from the earthquake. Therefore, you should cover all the bases and make data backup. When it comes to cryptocurrencies, you should copy and reliably safe a seed key and seed phrase. It is a password able to restore your wallet in case of losing or stealing. Find details about this process on News.bitcoin.com.
Besides, you should make a backup copy of your wallet, because some of them use internal private keys. If you want to protect your savings as well as possible, the backup copy should be encrypted and stored in several places (for example, on a USB carrier, on a computer, or in the cloud). It should be regularly updated.
Step 3. Select a reliable password
What are the types of passwords, and which of them are the most reliable for a Bitcoin wallet? Similar to all other online service passwords, it is important to use a combination of upper-case and lower-case letters, figures, and symbols (preferably randomly selected). It is recommended to create a combination of at least 16 symbols. Write the password on a piece of paper and put it in the safe deposit in order not to forget it.
Step 4. Protect yourself from hackers
If you store cryptocurrencies in the wallet installed on your laptop, smartphone, or tablet, follow the computer security rules: install an antivirus and constantly upgrade databases; do not connect with suspicious Wi-Fi networks, and do not leave the device unattended.
Step 5. A closed mouth gathers no feet
If you do not have a personal security team, you’d better not tell everyone about your cryptocurrencies. Rumors about your richness (surely, hyperbolical) can reach criminals engaged in racketeering or stealing. It will pose a threat not only to your wallet, but also to your personal security.
Register at Blockchain & Bitcoin Conference Malta and learn more about how to protect your crypto-currency wallet