7 Steps To Securing Your Bitcoin Wallet

7 Steps To Securing Your Bitcoin Wallet

So you finally got over your doubts and decided to buy your first bitcoins using a crypto exchange or maybe got some from a friend.

It has landed safely into your wallet, and then you remember that news article you read about stolen bitcoins. Wait, how do I make sure I don't lose my Bitcoins? You ask yourself.

Well, here are seven steps to securing your Bitcoin wallet. But before we get to that, let's define what a Bitcoin wallet is.

Bitcoin Wallet Explained

In its early days, the Bitcoin wallet was only a software program that you install on your computer so that you can manage your bitcoins.

A Bitcoin wallet usually has-

-public and private keys

-an address.

Public keys are used by the wallet to verify transactions on the Bitcoin blockchain while private keys refer to your password for accessing the software.

To make it easy for anyone to use Bitcoin, crypto exchanges like www.addisonchurchil.io takes away the stress of installing the Bitcoin wallet software on your computer. You can easily create a wallet after signing up on their website and use your wallet address to receive bitcoins instantly.

Now that you understand what a Bitcoin wallet is, here is how to keep it safe from hackers or intruders.

Step 1Use a Trusted Bitcoin Wallet Provider or Exchange

Whether you're using a hardware Bitcoin wallet or creating one on a crypto exchange, ensure that the company offering the wallet is following strict security compliance rules.

If the platform gets compromised in the future, you will lose your bitcoin wallet and the assets therein. So do a little research about the exchange or wallet provider before you sign up for their service.

Step 2Enable 2 Factor Authentication (2FA)

The safest cryptocurrency exchanges allow users to enable 2-Factor Authentication instead of using only a password to sign in.

With 2FA enabled, you will be required to provide a unique code from your mobile device to complete your sign in or to send money out of your Bitcoin wallet.

Usually, hackers cannot access your Bitcoin wallet or steal your funds unless they have access to these unique codes.

Step 3Double Check Addresses Before Each Transaction

Before you send or receive bitcoins, it is vital that you confirm the address of the receiver before releasing the funds.

Some malicious programs created by hackers can replace the original receiving address with a different address belonging to the hacker. Also, there is a chance that the receiver has lost access to their wallet address or simply created a new one.

Therefore, verify the address before you send. Bitcoins sent to wrong addresses are nearly impossible to retrieve.

Step 4Pay Attention To Phishing Emails

One of the primary method used by hackers to attack Bitcoin wallet is a phishing email.

In some cases, the phishing email requests that your reset your password by clicking on an embedded link to a site that may look like that of the crypto exchange you signed up with for a Bitcoin wallet. Submitting your information on this site will result to you losing your Bitcoin treasures.

To avoid falling victim to such scams, always keep an eye out for phishing emails and then make sure that you're visiting the right website each time you log in to a crypto exchange.

Example of a phishing site URL maybe

www.addisonchurchillcompany.co while the original URL is www.addisonchurchill.io

Step 5Device Safety

If you ever have to service any of the devices that are associated with your Bitcoin wallet address or it's private keys, then take care to remove any traces of this important information before releasing the device.

Also if you ever have to use a public device to access your wallet (this is not advisable), then ensure that you log out and clear your password from the browser before leaving the place.

Step 6Separate Your Funds

Remember the saying: do not put all your eggs in one basket. It applies to your Bitcoin wallets especially when you have a lot of money locked in.

You can create multiple wallets on the same exchange or create multiple wallets on different exchanges and then split your funds.

Experts recommend keeping one wallet for trading and daily transactions and then a separate wallet for saving up your Bitcoin treasures.

Cold storage wallets allow you to store Bitcoin on a platform that exists outside the internet, so they are the best for savings because it is less susceptible to hack and other vulnerabilities.

Note that the reason to separate your funds is to reduce losses if a hacker somehow manages to gain access to your wallet. But there are very slim chances of that happening if you take care to apply all the steps mentioned above.

Step 7Change Wallet Addresses and Passwords At Least Thrice in A Year

Although this is a general tip for staying safe from cybercriminals, it takes up more importance when it comes to your Bitcoin wallet.

Using the same wallet address or password for a long time makes the safety of your assets thin over time since hackers place more attention on old wallets. Remember, there is always no limit to the number of wallet addresses or passwords you can create so maximize the opportunity to stay safe.

Thrice in a year is just a recommendation. You can do it more often if you want to.

Final Words

Another look at the seven steps to secure your bitcoin wallet mentioned in this article may trick you into believing that keeping your bitcoins safe is a Herculean task.

Well, remember that one of the core principles behind bitcoin is allowing people to be their bank. So, you need a little extra carefulness, and then nothing will go wrong.

Millions of people around the world are already transacting with their Bitcoin wallets, and you just got all the information you need to stay safe right from the go.

Millions of people around the world are already transacting with their Bitcoin wallets, and you just got all the information you need to stay safe right from the go.