If you just started using Bitcoin, there are certain things that you must be familiar with. Bitcoin allows you to send and receive money and make transactions differently from what you are used to. For this reason, you should be careful to learn about using this digital currency for any serious business. You should treat Bitcoin as carefully as you do your common wallet or even more in certain instances.
Normally, you would dearly guard your regular wallet. Bitcoin allows you to transfer money globally in very simple steps and it gives you control over your money. Needless to say, such great features would not be free of security concerns. However, Bitcoin is highly secure and credible when used correctly. It is important to note that you are responsible for adopting good practices to protect your money.
To help you further, here are some of the ways recommended by the Bitcoin revolution official site to secure your wallet.
Be Cautious of Online Services
You are advised to be extra cautious of any service that offers to keep your money online. Several exchanges and digital wallets have experienced security breaches before and such services still don’t offer security and insurance for storing money as banks do. Consequently, you might use other kinds of Bitcoin wallets or be very careful when choosing such services.
Backing Up Your Wallet
A backup of your wallet protects you from computer malfunctions and other human errors. It can also be a means of recovering your wallet if you lose your computer or mobile device if you kept your wallet encrypted. You should use various points to back up your wallet since a single point is not good for security.
Also, you need to make regular backups to ensure that all new bitcoin addresses and change addresses you made are featured in your backup. Nevertheless, soon, all apps will be using wallets that require to be backed up once.
Use Small Amounts Daily
A bitcoin wallet is similar to a regular wallet with money. If you would not have $1,000 in your pockets, you might also do the same with your bitcoin wallet. Generally, it is advisable to normalize keeping just a small amount of bitcoins on your, PC, server, or mobile for daily use and store the rest at a safer place.
Encrypting Your Wallet
Having your wallet or smartphone encrypted enables you to have a password for anybody who attempts to withdraw your money. This guarantees protection against thieves, however, it is not safe for keylogging software or hardware.
In this regard, you should always remember your password or you risk permanently losing your money. Unlike regular banks, Bitcoin has very few password recovery methods. By all means, you must never forget your password.
Always Update Your Software
To receive crucial security and stability fixes, you must use the most recent version of the bitcoin software. Updates safeguard your money against various problems, include new important features, and guarantee the security of your wallet. Also, you should install updates for the rest of the software on your PC or phone to further secure your wallet environment.
Save In Offline Wallets
An offline wallet is also referred to as cold storage and it gives your savings the highest degree of security. It entails storing your wallet in a safe area that is not linked to the network. If done well, an offline wallet is very reliable in preventing computer vulnerabilities. According to the bitcoin revolution official site, an offline wallet can be used alongside encryption and backups for maximum security.
Use the Multi-Signature Feature
Bitcoin offers a multi-signature aspect that requires a transaction to have several independent approvals to be used. This can be applied by a company to allow its staff access to its treasury only accepting a withdrawal when three of five members sign the transaction. Some digital wallets also offer multi-signature wallets that enable consumers to track their money and prevent theft by corrupting a single server or device.
For those that already have an idea of what bitcoin is, there is no doubt that you agree on how much profitable the investment can get. As is the case for any serious business, putting in place security measures is vital for the success of any business.