If you own Bitcoin (abbreviated as BTC) or are interested in mining it, you need to be sure your wallet is secured with a private key, a signature, or other block chain functions on a P2P server where block technology offers more than just a bit of safety.
No one wants to lose their wealth due to lax security. You would never think of giving your bank ATM code to a stranger or writing it on a card in your wallet. The same mindset is at work among those who own Bitcoin. Fortunately, there are numerous ways you can maximize the security of your Bitcoin wallet.
Here are some of the key strategies that every Bitcoin owner should know about:
Use an Offline Wallet
Using an offline wallet avoids 90 percent of all Bitcoin security problems. When the wallet is not connected to the Internet, thieves can’t get to it or even attempt to break into it.
Strong Passwords are Essential
Always use a password that is at least 16 characters long, and be sure to use a healthy mix of letters, numbers, punctuation marks, and symbols. Don’t ever use common words or phrases as Bitcoin wallet passwords.
Backup All of Your Wallets
No matter what types of wallets you prefer to use, or even if you use several different kinds, make certain that you backup every one. If your device gets stolen, or if there is a system crash, you could lose your precious Bitcoin savings. A backup for each wallet is a crucial component of any smart Bitcoin security plan.
Be Cautious When Using Online Services
There are thousands of online Bitcoin wallet, exchange, and storage services. Always be very careful when using any third-party service that offers to “store” your Bitcoin. There have already been about a dozen major news stories about failed security measures associated with online crypto-currency services.
Use an Encrypted Wallet
There are several different types of Bitcoin wallets, some more secure than others. Regardless of which one you prefer, be sure to encrypt your wallet completely. That way, even if your device breaks down, is lost in a natural disaster, or is stolen, no one will be able to access your Bitcoin wallet and gain entry to your assets.
Consider a Multi-Signature System
A multi-signature security system is ideal for organizations that want to have two or three different people approve the disbursement of Bitcoin from an account. Even a husband and wife could set up a multi-sig system to enhance the overall security of their Bitcoin wallet.
Finally, don’t forget to have some sort of backup plan in the event of your death. Some Bitcoin owners put all their security codes and wallet signatures in a safe deposit box along with wills and other valuable papers. There’s no reason for your loved ones to be in the dark about your wealth, so make sure to put all the security codes on paper or an encrypted form of storage.
Bitcoin security is one of the most important topics in the current crypto-currency debate. In fact, the challenge of security is what prevents many consumers from purchasing Bitcoin in the first place. Make sure all your crypto-currency is safe and secure by having a plan and carrying it out, before the unexpected happens.
