Due to cyber attacks, a huge amount of Cryptocurrencies are being stolen every week. World’s most famous Digital currency “Bitcoin” is the biggest victim in the past years. Here you will know how to minimize the risk of Bitcoin Hacking and keep your bitcoin safe. Basically this applies to all cryptocurrencies.
Why keep Bitcoin safe and secure?
Bitcoin is a digital asset. There is no hard money of Bitcoin so that you can save them at your house. Although, Bitcoins wallets provide security measures still you have to do some extra efforts to make sure that no one could steal your Bitcoins. Your one little mistake could prove to be very expensive. As they say, nothing on internet is fully secure, several exchanges have been hacked in the past and they lost hundreds of millions of dollars. Here are the guidelines to keep bitcoin safe. These are listed in the increasing order of difficulty and security (obviously!). You’d be surprised as most people don’t even follow the first advice. Try to be as careful with your assets as possible.
Use Strong Password
A strong password is the first thing you have to do. It works like a protective shield which protects you from day to day hacking. Use Capital Letter, Small Letter, Special Character, Numbers in your password. Moreover, don’t select the password with your name or wife’s name or children name. After selecting a strong password. write it down in your personal diary. Many people use a password generator to prevent from dictionary attacks. That is also a good way to improve security. Firefox browser has a plugin to generate password for you.
Keep Your Bitcoin Public and Private Keys safe
Bitcoin Public Key and Private Key is used to send and receive Bitcoin respectively. Generally, Public Keys are longer than Private keys. They look like a string of different numeric and alphabetic character. Since the private keys make it possible to spend your Bitcoins, it’s important that you keep them safely and securely. After all, if they get stolen or leaked due to human error or poor bitcoin wallet security, you won’t be able to protect or retrieve your Bitcoins.
Some people use a software wallet on their phone. It is an app that will help you make the transaction. It is very easy to use. Android and iPhone and Tizen all have software wallets that you can use. There are only two problems with that. First, if your wallet is running on an older version of the software, you’re a potential target for hackers. Technology is growing every day, so as the hackers are changing their way. So keep your Bitcoin wallet updated to allow your Bitcoin Wallet company to provide you more security. Second problem is that if you lose your phone somehow then it will be impossible to retrieve your assets back. Always remember to have a backup when you take control of your private keys.
You can use hardware wallets to keep the private keys. That way it is only visible for a short duration when you make the transaction (for signing). Because most of the time we are not trading, right? It is only during the few seconds we need the keys to be used for signing. The hardware wallet is like a pen drive with some memory and few software installed to release the key for short duration. The most popular hardware wallets are Trezor and Ledger Nano S
Trusting the Coin Exchanges
As for trusting a cryptocurrency exchange, whether it’s centralized or decentralized. You need to do your homework first by researching the exchange’s reputation and history. By the way, in my opinion, decentralized exchanges are much better than centralized exchanges. Still, you can go with the reputation. There have been several hacks from the exchanges, so only go for the reputed ones like bitstamp.com and coinbase.com.
Can Use Cold Storage
Cold Storage means, no connection of Bitcoin Wallet with the Internet. You can use this feature if you are not trading daily or regularly. If you are investing in Bitcoin for a long-term, then you may use this feature. This allows you great security and safety from hackers. Some people write their private keys on a paper and keep in a safe box or bank safe. That is a very full proof way to keep the secure keys. Remember to keep backup copies because if the paper is lost there is no way to get the money back.
General guidelines to keep bitcoin safe
In general while using an electronic transaction, it is advisable to be cognizant of vulnerabilities out there in the web. Try to be smart about your electronic devices as they can be easily targeted to compromise your personal information.
Secure Your Device
Use a proper password on your device so that no one can access your device without your permission. You can also use fingerprint sensor technology if your device allows. Moreover, use password or pattern to the application of Wallet. Two Factor Authentication will do this work for you. Also, install and run Antivirus on your devices.
Use limited device to do important transactions
Do not use your friends or your companies laptop to do a bank transaction unless absolutely necessary. Your employer might have a key-logging software on the device or on the network. It can compromise your financial assets.
Do not use public wifi to make transactions
It is simply naive to use public wifi for anything personal. Even facebooking is risky. Some one might be sniffing the entire network! Public wifi at airport or in the restaurant are nice spots for hackers to get information.
Alike securing your hard wealth, you should review your options carefully and decide the best way to keep your soft wealth safe as well. Look through the points we’ve given you and apply them.