Bitcoin Security for Newbies
Although bitcoin is elusive and at times seem invulnerable to external influence, every now and then we hear about them being lost or stolen.
Although bitcoin is elusive and at times seem invulnerable to external influence, every now and then we hear about them being lost or stolen. That is why we gathered some tips to help you keep your cryptocurrency safe and sound.
Nothing on the Web is secure Every device that is linked to the Internet is susceptible to hacking and web wallets are not and exception to this rule. Web wallets best fill the role of “middleman” in operations with digital currency. The point is to fill these with small amount of bitcoin that you intend to use in the nearest future. No one will miss a few stolen “digital pennies” if the rest of their bitcoin is safely kept somewhere on the external drive.
And another thing. While bitcoins partial independence from outside economic streams is one of its greatest benefits, there is never a refund of any sort. If you lose them by any means, they are gone.
Never put all of the eggs in one basket
Though the above written rule is the same for all the types of currency, many underestimate its importance. It’s not fun to lose all your money due to some pesky digital thief. It’s much less fun to lose all of them. Keeping in mind that the number of bitcoin wallets (addresses) that one can create and use is not limited, divide your funds as much as convenient.
Digital protection is not the only kind
Continuing with security issues. Nor laptop neither PC are well enough protected from the extraction. Local digital currency wallets hold data that is vulnerable to copy by Trojan horses. To prevent these events from happening there must be another mean of protection and not a digital one.
Put as much information barriers between you and a perpetrator. You need a QR code that must be scanned prior to any operation with your bitcoins. Maybe a password written on a sticky note or carved on a stone tablet. Anyway, it should be something that can be used outside of the WWW.
Another good idea is the encryption of private keys. Lack of encryption password would render them useless to thief.
Sharing can be bad
Probably the most banal of all rules. Any service provider that has password protection of your personal details asks you not to tell it to anyone. It should be clear as day why you need to follow this rule.
When we consider financial security you are your worst enemy. As with any data backup is everything. There should be at least three different places containing private keys to your wallets. Speaking of which, whose should be backed up to, as it would be a drag to find that a large amount of coins were left on your burned hard drive.
Another thing – do not fully rely on your own memory. Always leave a breadcrumb trail for yourself to remember security information. It could be a book you like, a painting you adore anything that is so familiar to you that it momentarily associates with the required phrase or word.