The blockchain is inherently safe and much more secure than a cloud server. A cloud server can be breached by hackers as they only have to get into one server. To access the blockchain, a hacker would have to break into thousands of computers as it is decentralized.
With that being said, there are still a couple of vulnerabilities that could cause you to lose your Bitcoin or other cryptocurrency. There are always precautions that need to be taken to make sure that doesn’t happen.
In this article, I will go over several things you can do to secure your Bitcoin and keep them safe.
Your digital wallet
This is where you will store your cryptocurrency. A wallet really is just an account that keeps your digital key since all of the Bitcoins reside on the blockchain in immutable blocks.
This key has to be kept secure as it is your only way to access your coins. Suppose you buy cryptocurrency with Paypal. You will need to transfer the Bitcoins from the exchange platform to your wallet.
Besides your digital wallet, you should also have a cold wallet. This is basically like a flash drive that stays offline to keep anybody from accessing your private key. It stores your private key offline.
These cold wallets, also called a hardware wallet are encrypted so they are very difficult to breach. They also do not ever connect with the internet so your key stays safe.
Keep your key safe
If you ever lose access to your wallet, you have lost your coins for good. There is no way to get them back even if they aren’t stolen. Your private key needs to be kept safe in many other ways besides just in your wallet.
You should have the key literally written down and kept somewhere safe. And in multiple places. A bank safe deposit box is somewhere that can’t be destroyed, lost or stolen and is best for one option.
Do not give the key to anybody else as that allows them to sell your Bitcoins or transfer them to themselves.
Keep your internet secure
Many people use their smartphone to buy, sell and trade their Bitcoin with apps. Most apps are encrypted and safe, but the network may be the problem. If you are in a coffee shop on their WIFI, for instance, you could be opening yourself up to the possibility of being hacked.
Unless it can’t be avoided, it is always best to use your digital wallet when you are at home on your own secured network that is password protected.
You should also be changing your network password on occasion just in case so you can prevent anybody from guessing the code.
Be careful for phishing
Nobody ever has any need for your private keys so never give them out in a phishing email or to a website when asked. There are sites out there that may look authentic, but are actually fake sites. . Do your due diligence and seek out only authorized sites where you use your Bitcoin.
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