Your Bitcoins Might Be At Risk

bitcoin

Which security measures do you take to ensure that your Bitcoins are safe and sound?

In order to efficiently and safely use cryptocurrencies especially Bitcoins, we should follow several steps and be cautious when it comes to the way how we store our funds and in which way we make transactions. There is plenty of ways to make sure your assets are safe and easily accessible but not every one of them is fully reliable despite their popularity.

We bring you some of the tricks and tips based on the customer experience that can help you in order to keep your Bitcoins safe and sound.

Wallets

Most owners of Bitcoin consider that online wallets provide the best safety features for their assets since they use private keys and addresses while being user-friendly. There are several wallet options at your disposal such as online and offline, hardware and software as well as paper wallets which are also referred to as cold wallets.

A side note about hardware wallets: do not use them, it is a waste of money since the same level of security can be achieved with the free, open-source Bitcoin-core software, and you do not really know what software those magic ‘vaults’ are running (there were recorded cases of breaches and phishing).

The problem behind wallets is that they are still 3rd party that gets involved in transactions, which means a higher level of risk from hacking.

bitcoin safe

Private and Public Keys

data chart

So what’s the solution?

“It’s never going to happen to me” – Average Joe

Bitcoin Core

open tab information

Do not forget this passphrase, since by doing that you will irreversibly lose access to your funds (I always say that it’s better to lose money over one’s own stupidity).

Cold Storage

Two-Factor Authentication

This feature is available in most online wallets, connecting your account or mobile phone with the wallet so that hacker attacks face additional security factors and therefore breaching into your account becomes much more complex.

Additional remarks

Lastly, the basic tricks that you can also implement are protecting your transactions by not sharing your credentials with other people, skip wallets that are hosted by providers or cold wallets in general, and monitor how is your wallet used in transactions.

1. During the years, a number of open-source, decentralized exchanges appeared, such as BitSquare.

The exchange of cryptocurrencies now runs smoothly via digital currency exchanges which are independent platforms that connect fiat and cryptocurrencies.

As mentioned, due to significant risks, it is very much recommendable not to keep too much trust in exchanges especially in storing your funds.

n.exchange screenshot