As easy as it is to move money across the internet using bitcoin, there are risks associated with it. It is possible for malicious people to violate your privacy, track your spending or worse, steal your money. Fortunately, there are some bitcoin security measures that you can use to protect your precious digital currency and your spending habits from being displayed to unauthorized persons. Some very useful ones are as follows:-
Have Separate Wallets
Ensure that the spending wallet is not the same one that has all your bitcoin holdings because all your savings will be vulnerable to various types of infiltration. Since there is no limit to the number of bitcoin wallets one can have, take advantage of this and have several for your own security.
Avoid Keeping Your Savings In A Web Wallet
There have been increasing cases of hacking of web wallets. As much as these web wallets are convenient, they should only be used as the place to put small amounts of money that you will use after a short time. Keeping only small amounts for spending in your web wallet will ensure that you don’t suffer a great loss when it gets hacked. Know that bitcoin is very different from a credit card and in case you ever lose money through fraud, there are very minimal chances of getting it back.
Guard Your Privacy
Avoid sharing your private keys with anyone. This is because you will allow them to know the amount of bitcoins that you have. This is a private matter and you should never provide any personal details for anyone to guess what you have in your wallet. Take measures to ensure that your spending isn’t tracked by keeping personal information a private as possible. Make sure there is no connection between your wallets by for example using a mixing service to transfer funds between them. This will make it harder for hackers to violate your privacy.
Consider Cold Storage
Consider keeping your wallet’s private key in an offline storage medium for adequate protection. It could be a plain text file stored in a USB key or simply a QR code printed on a paper. For any bitcoin transfer to take place the QR code has to be scanned or the private key has to be manually entered into the application. You could also encrypt your private keys as an additional security measure so that in case someone discovers them, they simply can’t use them without your password.
However, don’t ever save your bitcoins in a wallet that is stored in your computer because you are still highly susceptible to an attack like a Trojan horse attack. The attacks occur frequently because the bitcoin wallet applications usually store their data in predictable locations.
There are more bitcoin security measures you can employ but with the above security measures, you can have a safer bitcoin experience and avoid the unfortunate event of someone tracking your spending and stealing your precious hard-earned bitcoins. This will save you a lot of frustration and loss.