A Bitcoin is a digital cash system, where the Bitcoins are stored in Bitcoin wallets. A Bitcoin wallet is not a physical entity like a normal wallet. They are just files, consisting of private keys, with the transactions that can be performed in a wallet. The private key will be generated based on the address of the Bitcoin wallet. A Bitcoin wallet is also termed as physical wallets, which can be used in Desktop, web, mobile, and hardware. Hence ensuring the safety of the bitcoin wallet is mandatory, to securely trade with Bitcoins. This article discusses the steps to secure the Bitcoin wallet, which acts as the essence of a bitcoin transaction, in the following sections. To invest in bitcoins you can visit bitcoin pro live
Steps in securing a bitcoin wallet
Use 2-factor authentication scheme
There are many online services available to store the Bitcoins in a digital wallet. But whatever may be the service, anything that is made online, are highly open to security breaches and threats. S0, access the online service, that offers a 2-factor authentication method, in which, when the user logins to access the service with a registered username and password, a one-time code must be generated to the registered mobile number. Hence the user can access the service, only if the code is entered, which acts as a double authentication system.
Restrict to a small number of Bitcoins
With a traditional currency system, you will not be keeping more amounts in hand. The same applies to the Bitcoin wallet. Always try to hold very Bitcoins in the wallet, which may be a desktop, mobile, or the web. Make sure the remaining of your savings is secured safely. By doing so, even if you lose Bitcoins due to security breaches, the loss will be minimal only.
Like in computer files, you have a backup in case of sudden computer failures, similarly have a backup for your wallet and store it in a safe place. So, in a case out of human mistake or computer failures, if you lose your wallet, you will able to recover the wallet using the backup. The user must back up the entire wallet, because, if only the visible Bitcoin address has a backup, the lots of remaining part will be lost.
When your computer is connected to the Internet, they are highly vulnerable to security threats. So, a digital wallet in a computer that is connected to the Internet is also prone to virus attacks and malicious user attacks. So, a backup wallet should always be encrypted so that they can be secured from security threats.
As the number of new bitcoin addresses and editions in the already existing Bitcoin address is changing, it is always a wise idea to take regular backup of the bitcoin wallet.
Encrypt your wallet
So, how to encrypt a digital wallet? You need to set a password for the wallet software, such that, whoever tries to access the wallet will be asked for a password. By doing so, only you will have access to withdraw Bitcoins from your wallet, preventing anonymous usage.
In the traditional currency banking system, if you forgot the password, there will be many password recovery options. But in Bitcoins, there is only a limited password recovery option. So, if you forget the password, you will lose your entire Bitcoins stored in the wallet. So, always, note down the password in a white paper and keep it in a place, where only you have access.
Like any other password system, use a strong password, which is composed of letters, numbers, and punctuation marks. A strong password must contain 16 long characters. Some people for easily remembering the password will use short passwords and end-up in facing the security issue. So always choose a strong password, and try to memorize the password for safety concern.
The wallet that is stored in a computer that is not connected to the Internet is called offline wallets. It is always secure and wise to store a wallet offline, where you will not face any security threats or virus issues.
Thus this section has given various steps to secure the Bitcoin wallet. Ensure that you have a backup wallet to make a Bitcoin transaction without any issues and in a quick manner.