Bitcoin is a digital currency that offers incredible features but at the same time involved numerous risks too. It is a decentralized currency that has given the freedom to hackers to attack bitcoin wallets and steal the currency stored in them. You can visit www.bitsignal.live if you want to enhance your trading skills and make massive profits. If you are using bitcoins, you need to protect them from all kinds of online risks. Some of the tips that will help you to maintain the security of your wallet are as follows.
Use Multi-signature feature
When it comes to improving the security of your bitcoin wallet, there are several features that you can use, and one of them is Multi-signature. It is a feature that ensures that you will have to approve a transaction multiple times before completing it. It makes the wallet more secure and ensures that no one else is able to make a transaction using your wallet. It minimizes the risk of online thefts as even if a hacker is able to gain access to your wallet, he won’t be able to make a transaction, and it will need 3-4 members to sign the transaction.
So, if you are using an online bitcoin wallet, you must check if it offers the multi-signature feature and activates it. It will keep your mind at ease as you will know that your bitcoins are safe and no one can steal them. Even if anyone tries to do it, you will get notified straightaway.
Prefer cold wallets
There is a huge variety of bitcoin wallets available in the market, but mainly there are two types; Hot wallets and cold wallets. If we talk about security, you must go for the cold wallet as it is an offline wallet that offers you maximum security and protects your funds from all kinds of online risks. It is immune to threats such as hacking, phishing, etc. There are different types of cold wallets, but the hardware wallet is the safest one.
A hardware wallet is a USB device in which you can store bitcoins and connect them to your computer. You can carry it along with you and can access bitcoin anytime and anywhere to make transactions. If you want to keep bitcoins safe, you must try to use a hardware wallet as they offer the best safety features.
Use a strong password
It is highly important to encrypt your bitcoin wallet and set a password on it. It is an excellent feature that ensures that no one else other than you can gain access to your wallet. You must be careful while setting a password as it needs to be complex, strong, and unique. You must use such a password that it is difficult for hackers to guess. Moreover, you must ensure that you don’t forget the password, as if it happens, you may lose access to your bitcoins forever. So, it is better if you write down the password on paper and store it in a safe location.
It is a tricky task to choose a strong password as you need to take care of several things. Your password must be a complex combination of alphabets, symbols, numbers. It must have a minimum of 16 characters as it will make it more secure.
Create backups of the wallet
The bitcoin wallet is a digital locker in which bitcoins are stored. If it gets damaged or you lose access to it, you also lose access to the bitcoins stored in it. So, to stay on the safe side, you must create regular backups of your wallet and store it in an offline location. It is important because lost bitcoins cannot be recovered. So, if you have a backup, you will be able to recover bitcoins easily in case the system crashes, or you lose access to the wallet. You must encrypt the online backups as there is a massive risk of hacking and phishing.
Maintain separate wallets
One of the biggest mistakes that most bitcoin users make is that they use the same wallet for all purposes. It makes it easier for hackers to gain access to your wallet and steal the bitcoins. So, for better security, you must keep separate wallets for varying purposes. For instance, you can maintain an online wallet for daily transactions and an offline wallet for storing the bulk of bitcoins.