If you are into cryptocurrency, you’ll be aware you require a separate wallet for your bitcoin and several types of cryptocurrency. Similar to a physical wallet, you need to be able to secure and manage your bitcoin wallet as well. Since it’s a digital wallet, there are different ways to secure and manage your bitcoin wallet.
Here are some expert tips to manage your bitcoin wallet properly and responsibly.
- Learn About Bitcoin Wallet
Before you can manage your bitcoin wallet, you need to know which one to use first. There are different types of wallets that will allow you to access and store your digital currency. The types can be classified as hardware, software, and paper. These are just some of the types of wallets that you can use:
- Desktop – A desktop wallet can be installed on your laptop or computer. The restrictions with this medium are that your wallet can only be accessible from a single source, which is the laptop or computer, wherein you installed the software. This can offer higher security. However, the risk lies in your computer getting hacked or a virus. If this happens, you can lose all your bitcoin.
- Online – Another way to store your wallet is through the cloud. This way, your wallet can be accessed from any device wherever you are. This may be a very convenient choice. However, your private keys will be controlled by a third party, which makes you more vulnerable to theft of online hacking.
- Mobile – On the other hand, if you are always on the run, then a wallet on a phone app, can be very useful for you. The advantage with this type is that you can also use it in retail stores. It’s on a simpler software since it’s on an app and easier to use.
- Hardware – You can also store your wallet on an external hard drive or USB. With this, your wallet is stored offline, which is more secure because hackers can’t access it. However, make sure that you don’t lose your USB or external hard drive. If you lose it, then your bitcoins will be lost along with it.
If you need more choices before you decide, you can check out CoinTippy for some recommendations.
- Take Caution with Online Services
Online services are not always very dependable and trustworthy. Because of this, you should always be wary of any online service where your money will pass through. Many online wallets and exchanges have been a victim of security breaches. Make sure that no matter which online service you get will provide enough security and insurance to store money such like a bank. Choose service with caution and do your own research. In addition to that, it will also increase your security and add another layer of security to use two-factor authentication.
- Back Up Your Wallet
As a form of safety net, you should also keep a backup of your wallet in order to protect your bitcoin wallet from human error and computer failures. Remember that anything that can go wrong will go wrong badly. So, it’s best to be safe. In case your computer or mobile phone gets stolen as well, a backup will allow you to recover your wallet easily. This way, you won’t lose your money.
In addition to a backup, you also need to encrypt your backup. Backups that are stored online is very vulnerable to hack or theft. Encrypting your backups should be a habit because even computers that are connected to the internet is already highly vulnerable to viruses or malicious software. Best to keep all grounds covered when it comes to the security of your bitcoin wallet and its back up.
As a regular practice, you should always back up your wallet on a regular basis. This is to make sure all the changes you make will still be intact. In case something happens, you will get the latest update.
- Keep Your Software Updated
Another tip is to always make sure that your software is up to date. These updates are not just to make your software faster, but it will also install new security updates that will help protect you from virus or other malicious software. You should also regularly update your software on your phone and computer – not only your wallet software.
Like your everyday lives, you need to secure. The blockchain makes it possible and convenient to transfer value anywhere, but you need to be in control and protect your bitcoin wallet. Follow the above tips to protect your money.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.