September 24, 2022

BtcStorm

Bitcoin & Tech news

5 Measures to protect your Bitcoin funds

protect bitcoin funds
Read Time:3 Minute, 48 Second

The Bitcoin system is characterized by allowing you to have total control of money and transactions (invest, buy, pay) regardless of the wallet used. In addition, its security protocol is one of the most reliable, so that your currencies are always protected. Similarly, it is necessary to stay alert and implement the following five measures to protect your Bitcoin funds.

Software update

The Bitcoin software is constantly updated to provide improvements to the security of the system. Thus, it is possible to prevent any problem or attack caused by third parties, which means the loss of your money.
Also, by using the updated version of the BTC platform, you will enjoy new features. This means that it will improve the operating experience when managing assets.

In addition, the recommendation is to protect the smartphone and the used computer. To do this, you must keep up with updates to the security programs of those devices.

Make a backup

The computer or smartphone can crash at any time, so you would immediately lose the security passwords of the wallet. Therefore, having a backup is a good option to regain access to said site.

Keep in mind that most virtual wallets have a private password system internally. Therefore, having only one backup would be risky. It is best to make a full backup of your Bitcoin address.

This process must be carried out regularly, since changes are made in the system and these must be recorded in each copy.

Lastly, you will need to create multiple BTC site addresses for backups. In this way, you will enjoy more possibilities when regaining access to the wallet.

Virtual wallet encryption

The encryption of the wallet and, therefore, of the respective keys of your Bitcoin address, make it possible to make the information unreadable for any unauthorized person who opens the file. Of course, if you provide the specific and secret information, which only the owner should have, you will be able to make the file readable again.

With this protection method it is possible to prevent direct theft using a password extracted from the computer or smartphone. However, encryption does not guarantee complete security against software such as keylogger.

Also, always remember to encrypt your backups, as this helps protect your computers. Remember that any device whose backup is stored online is potentially vulnerable.

Select a strong and easy-to-remember password

Select a password with a maximum of 16 characters; these must be punctuation marks and numbers, uppercase and lowercase letters. Also, avoid using familiar words like your first name, last name, or the area where you live.

In fact, you can opt for the keys generated automatically by a special program, since these are characterized by being more secure. In this way, the key to be used will be strong and difficult to crack.

It is important that you try to memorize the password or write it down on paper and then keep it in a completely safe place. Keep in mind that Bitcoin does not have a password recovery service, that is, if you lose this code, you will not have access to your money again.

Choose a cold wallet

A cold or offline wallet does not have an internet connection, so it stores passwords securely. This system protects the vulnerability of the equipment, together with the use of encrypted backup copies. Therefore, it is a good option.

For this offline wallet to be really effective when it comes to safeguarding the Bitcoin system, you’ll need to start by signing transactions, but offline. For this you will need to share the wallet on a couple of computers.

A computer will have on it all the wallet registration and the ability to sign transactions, but this computer will not have access to any network. Meanwhile, the second computer will be able to create transactions without signing them and, unlike the first, this one will be linked to a network. Thus, it is possible that each registered transaction is secure.

Conclusion

Bitcoin offers you protection technology integrated into the system, to prevent fraud, counterfeiting and currency theft. However, as users, we should not leave all the responsibility to the security protocol. We have to take other measures to avoid losses.

It is necessary to take care of all the details: update the system, encrypt the platform and select strong passwords that we can remember despite the passage of time. Likewise, there is the proper selection of the wallet.
If you follow these steps, you will have no problem being part of the Bitcoin community.