Important tips you need to follow for securing your bitcoin wallet!

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FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken November 19, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Bitcoin is an incredible cryptocurrency, but still, some people are hesitating to adopt it because there are some risks related to it. Being a digital currency, bitcoin is exposed to a wide range of online threats such as hacking. It is the primary reason that bitcoin wallets are used to store the currency as they safeguard it from such risks. If you want to increase the security of your wallet, there are some tips listed below that you can follow.

Wallet encryption

One of the most important things for securing the bitcoin wallet is wallet encryption. It refers to setting a password on the wallet so that no unauthorized person can sign into it. Encrypting a bitcoin wallet is an easy task, but there are some important things that you need to keep in mind. First and foremost, you need to ensure that you remember the password properly. Bitcoin wallets don’t have any password reset option, so you do not forget the password because if that happens, you will lose access to the wallet forever. So, to cover the risk of forgetting the password, you better write it down on paper and store it in a secure location.

Moreover, you must set such a password which is difficult for the hackers to crack. Using simple terms such as names, surnames, etc., are weak passwords and can easily be cracked. So, you must add some symbols, punctuation marks, upper and lower-case letters to the password as it will increase its complexity. But choosing a complex password has a drawback as it is hard to remember, so you must keep its physical copy with you so that you never forget it.

Use secure wallets

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There are numerous types of bitcoin wallets in the market, and each one of them has varying security features. So, if you want to ensure that your bitcoins stay protected from online threats, you need to pick a wallet that offers maximum safety. A hardware wallet is an excellent option for securing bitcoins as it is an offline wallet that automatically eliminates all the internet risks such as hacking. If there is no internet-connected connection, it is impossible for hackers to attack your wallet and steal the funds. Hardware wallets are USB devices that can be connected to any computer for accessing bitcoins and making transactions.

You can connect these wallets to any system as it is immune to all the viruses. The best feature of hardware wallets is that they allow you to create a backup for the wallet. So, you can back up the entire wallet to ensure that even if you lose the private keys or the system gets corrupted, you will be able to recover the private keys easily.

Update software regularly

Bitcoin wallets are a kind of software that you can use on computers or mobile phones. The safety of your bitcoin wallet highly depends on the efficiency of the software on which it is running. So, if you want to keep the bitcoin secure, you must update the software on a regular basis. If the software is up to date, the chances of facing any security issue will be minimum, and you will also be able to access the latest features of the wallet easily. Updates are used for solving the current issue with the wallet, so if you update it, it will enhance its safety will and offer better protection to your funds.

Regular backups

Mistakes are unavoidable as even if you be highly careful, there is always some chance to make a mistake. So, to ensure that you won’t have to face any losses due to your silly mistake, you must create regular backups of your bitcoin wallet. You must back up the entire bitcoin wallet, including the private and public addresses. If you don’t do this, you may not be able to recover the funds if something goes wrong and the wallet crashes. Adding to it, you also need to store the backup in a secure location as if you store it over the Internet, it will be exposed to hackers. So, for better safety, you must keep the backup in an offline location such as a USB flash drive, CD, etc.

 

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