In late 2017, Bitcoin experienced a massive surge in the price. However, through the test of time, it faded in popularity. However, now amidst the global pandemic COVID-19, the prices of bitcoin, just like any other commodity, has crashed to its lowest low. But that doesn’t mean we do not take enough measures to keep our bitcoins safe. Since the prices are alarmingly low these days, a lot of new investors are investing in Bitcoin.
However, the problem is they do not know how to keep their coins safe. Every day hackers are applying ingenious methods to steal the funds from you. A lot of prominent thefts happen in plain sight. In some cases, the funds are re-routed from one wallet to another. A lot of victims have actually witnessed their funds being stolen, but they cannot really do anything about it. Now, let’s understand this further.
All of you you keep your cards or cash in a physical wallet. Similarly, your bitcoins, too, are kept in a wallet. It is the digital wallet, which can be either web-based or hardware-based. You can have this wallet either on your computer or your mobile phone or keep it safe by printing the address and the keys for easy access on a paper.
But, did you ever wonder if these digital wallets are safe? Honestly, the safety of your wallet depends on how well you manage it. Your wallet has a set of keys, without which nobody can access your wallet. So, if you lose this key or if your key is stolen, then your currency is at a risk. You will never be able to see your bitcoins if you lose the key. Further, you might also lose your bitcoins via hacking, computer malfunctions, i.e. by crashing of the hard drive, or by physically losing the laptop where your wallet is stored.
So, here are some ways that will help you keep your bitcoins safe.
The wallets that aren’t connected to the internet are known as the desktop wallets. Some even refer to these wallets as the cold storage methods of storing bitcoins. There are a bunch of benefits of using a desktop wallet over a digital wallet. Linda, who offers online assignment help, says that though digital wallets are easily accessible from anywhere around the world, they are susceptible to hacking.
On the other hand, the desktop wallets are accessible only via your personal computer, with the security key that is available only for that machine. As a result of this, the exposure of the security key is absent. However, if your computer gets a malware attack, your bitcoins can be stolen.
Hardware wallets are naturally more secure than a desktop wallet. In this type, there is a USB stick where the wallet is present, and you can easily carry it around. So, one big advantage of this wallet is that there’s anonymity with where or how you make a transaction. Moreover, since no personal information is associated with the hardware, there’s no possible loss of data. Also, hardware wallets are not vulnerable to malware attacks. Thus, even if you do lose the wallet, you’ll still be able to recover the funds via seed phrase.
Another relatively safer method of storing the bitcoin is the paper wallet. However, to use this wallet, a bit of an advanced understanding of the digital currencies is required. You can easily generate a paper wallet offline for higher security. George, who offers online assignment help services, says that the paper wallets take less space, so you can easily store them. Further, there’s due anonymity maintained with them.
Now, there’s a provision that lets the bitcoin owners get physical coins. These cons have a tamper-proof sticker on them that states the amount of the bitcoin. When you request a physical coin online, you’ll have to bear a small premium fee over the price of bitcoin, but it is definitely safe.
Other security measures
Zain, who offers online write my essay services, says that a good way to maintain the safety of the bitcoins is taking the backup of the bitcoin wallet every now and then. So, even if there’s a computer failure, you can retrieve your currency via the backup in your digital wallet. Do not forget to add a password to your backup file.
Further, make sure that the software that you are using is recent and up-to-date. If your wallet is running on a non-updated software, it can become an easy target for the hackers. The latest software versions usually have a better security system and are naturally safer.
David, who offers the best digital marketing course online, says that multi-signature is a method in which approval of 3-5 people is required before formalizing a transaction. It is a great method to limit the threat of theft, as there are different servers and controllers involved in a transaction.
So, these are a few effective methods to keep your bitcoins safe and secure.