Bitcoin is the first cryptocurrency developed in 2009, and it is the only currency that has changed the trends of the financial market. The rise in price and popularity of bitcoin has made it the only target of fraudsters and scammers. There are prying eyes looking at your bitcoin wallets, and you must protect your bitcoins and never let scammers drain your digital wallets. Plenty of things must be learned by wallet users to protect the digital fortune. Bitcoin’s market is highly volatile, and it follows a rollercoaster ride because its price fluctuates a lot.
Some people consider the volatile market a demerit, whereas this is the only feature attracting huge investors and traders. The volatile market of bitcoin has encouraged investors to buy and invest in bitcoin to gain profit when the market is at its peak. Malicious hackers and fraudsters are always searching and attacking digital wallets that don’t use security features and use weak passwords. The rising price has increased the malicious hackers to steal or fraud the bitcoins of users who don’t know about bitcoin security. You can learn about securing your bitcoin wallets.
Let us learn some tips to protect our digital wallets and protect them from unauthorized access or cyber-attacks.
Protect your bitcoin wallet
To start your journey with bitcoin or any other cryptocurrency, the first step that users need to follow is to sign up with a bitcoin wallet. Bitcoin wallets cover the bitcoin network’s technical challenges for people who are not tech-savvy as it covers challenges such as addresses and private keys. It is simple and easy to get started with a bitcoin wallet, and it allows users to access their account by visiting the website and entering the username and password.
Some people think that online wallets are the only best and safest place to store your bitcoins, but these wallets are vulnerable to cyber-attacks in reality. If users don’t implement security features, it is next to impossible to recover your lost bitcoins.
Here are some best security practices that users must implement to enhance the security of their wallets.
To add a layer of security to the bitcoin wallet, some bitcoin wallet providers allow users to use the feature of either two-factor authentication or multi-factor authentication. The two-factor authentication restricts any unauthorized access, and it will alert you by sending you a 2FA code. This will make you aware and alert about your bitcoin wallet and its security. Also, it is crucial to know that not all 2FA methods are secure.
Most users use two-factor authentication and link it to the mobile app and phone number, but when users rely on SMSs, hackers attack messages and phone numbers and decode your 2FA passcode. Users who link their phone number with a bitcoin wallet, and then they must use a separate SIM card to get SMSs of two-factor authentication.
Utilize an offline wallet
There are many bitcoin wallets. All wallets are different in terms of security, features, and usage. Each bitcoin wallet has multiple addresses, and it is used to store cryptocurrencies. Bitcoin addresses are the location where bitcoins are stored, and these are long strings of alphanumeric characters. Every bitcoin address has public and private encryption keys, which are used to send and receive bitcoins.
There are two different types of wallets, which are online and offline wallets. Online wallets store the private keys online, which is highly targeted by hackers and cybercriminals. In contrast, offline wallets store private keys on devices that aren’t required to be connected to the internet. The best thing about an offline wallet is that these are not vulnerable to cyber-attacks.
Offline wallets are the best alternatives to online marketplaces known as bitcoin exchanges. Offline wallets allow users to have full control over their wallet and private keys, which protects them from data breaches. Some top-notch types of bitcoin wallets include paper, hardware, mobile, software, and more. All these wallets are different and serve their users differently. The only thing that users need to notice is to protect their private keys by using security measures.
Featured Image by WorldSpectrum on Pixabay