Bitcoin is getting increasingly popular all over the world. People have started using it as a common medium of exchange, which has gained the attention of hackers. The more balance people will have in bitcoin wallets, the higher risk they will have from hackers. So, if you are using bitcoins, you need to ensure that you are taking all the necessary precautions to increase security. You can visit crypto engine if you want to become a successful Bitcoin investor. There are some tips listed below that you can follow to enhance the security of your bitcoins.
Create separate wallets
One of the most popular tips, followed by several bitcoin users to safeguard their assets, is that they create separate wallets. There are several purposes for which people buy bitcoins, such as spending, investment, savings, etc. So, for better security, you can create separate wallets for different purposes such as savings, receiving payments, making payments, etc. There is no limit on the number of bitcoin addresses that you can create, so you must create separate bitcoin wallets. When you have different bitcoin wallets, hackers will get confused about which one to attack, and it will help you keep your funds safe.
Avoid using web wallets
There are different types of bitcoin wallets, but one of the most unsafe wallets is a web wallet. Web wallets are online wallets that you can access over the Internet through any device. It is relatively easy for hackers to hack web wallets, which is the primary reason that you better avoid using them. You can use them to make transactions, but if you want to store bitcoins, it is not a good option. So, even if you are using it, you should only keep small amounts of bitcoin so that the risk is minimum.
You should take no risk when it comes to bitcoin wallet as it is a decentralized currency, and there is no institution or authority that you can complain to even if you get cheated or frauded. So, you should never use a web wallet for storing bitcoins as lost or stolen bitcoins cannot be recovered.
Store private keys carefully
The private key is the key used to access a bitcoin wallet, and it is crucial to store it safely so that no one else can gain access to it. If you lose or disclose your private key to someone else, he/she can easily gain access to your wallet and use your bitcoins. It is an easy task for hackers to find out that two wallets belong to the same owner as they track the wallet address. So, along with the private keys, you must keep on changing the wallet address, so hackers won’t be able to spot any particular pattern in your transactions.
Store bitcoin in cold wallets
There are mainly two types of bitcoin wallets; hot wallet and cold wallet. If we talk about security, cold wallets are better as they allow you to store bitcoin offline, which removes the risk of cyberthreats such as hacking. Cold storage refers to USB drives, hard disks, etc. You can store your wallet in a USB key or in the form of a QR code on paper, which is also termed a paper wallet. These options offer better security and safeguard your bitcoin easily.
Set a password
You can set a password for your bitcoin wallet, which is also known as encryption. It will ensure that the wallet will ask for a password whenever anyone will try to log into it. It will protect your wallet and will ensure that no one other than you is able to enter it. But if you are using this feature, you should never forget the password because if it happens, you will lose all your funds forever. So, you must set a familiar password, or you can also create a paper copy of it and store it in your vault.
Moreover, you should always set a strong password as if you use a simple password; hackers would easily break it and steal all your funds. So, you must use a mix of symbols, numbers, and alphabets so that it is difficult to break. Strong passwords are usually challenging to memorize, so you better write them down on a piece of paper.