Creating Security For Your Stored Bitcoins

The rising value of Bitcoin makes it an appealing target for scammers. Don’t let them drain your online wallet; here’s how to secure your online bitcoin wallet.

Bitcoin is on yet another wild ride. Over the last few months, the cryptocurrency’s value has spiked in the range of 14L INR to more than 35L INR; at the time of writing, it is close to 18L INR.

Such circumstances encourage people to purchase bitcoins in the hope of making a profit. However, Bitcoin’s rising price attracts malicious hackers who see an opportunity to steal the funds of unwary users who are unfamiliar with Bitcoin security basics.

If you’re new to Bitcoin, these pointers will help you secure your online bitcoin wallet.

Safeguard Your Online Wallet

Signing up with an online wallet is the simplest way to get started with Bitcoin and other popular cryptocurrencies. Many of Bitcoin’s technical challenges, such as managing private keys and addresses, are hidden behind online wallets, making them an appealing option for those who are less tech-savvy or new to Bitcoin. Most online wallets take only a few minutes to sign up for, and accessing your account requires only a search engine, username, and password.

Online wallets, on the other hand, are not the most secure way to store your cryptocurrency. Anyone who has your email and password can access and steal your coins, and bad actors can do so with as little as a phishing email. Furthermore, unlike traditional payment systems, recovering lost bitcoins is nearly impossible.

Here are a few best practices for increasing the security of your wallet:

  • Turn on two-factor authentication (2FA): Enabling two-factor authentication, Your account is linked to a phone, mobile app, or physical dongle. Even if a malicious hacker obtains your username and password, they will still require that additional factor to gain access to your account.
  • Avoid using your phone number for 2FA: If you rely on SMS passcodes to secure your online bitcoin wallet, skilled hackers will be able to intercept your 2FA passcode. If you’re going to associate a phone number with your account, it’s best to use a separate, hidden SIM card.
  • Create a separate email address for your Bitcoin wallet: If your online wallet is linked to your email (one that you use to log in on various social media platforms), the hacker has one of two critical pieces of information required to gain access to your wallet. Use a unique email address for your online wallet that you don’t use for anything else. This lessens the possibility of a cybercriminal discovering your account.

Other Ways to Secure your Online Bitcoin Wallet

Software Wallets: Software wallets are programmes that you can install on your computer, flash drive, or mobile device. When you want to make a payment, a wallet app like Electrum stores your private keys on your device and uses them to sign Bitcoin transactions.

The Bottom Line

Despite the fact that online wallets have proven to be secure, hackers are constantly devising new ways to compromise your online bitcoin wallet. When it comes to bitcoin wallet security, offline wallets, hardware wallets, or paper wallets seem to bethe best options.

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