Whether you have been around since the origin of Bitcoin or you have recently gotten involved with virtual mining, protecting your Bitcoin is a top priority with the recent popularity and discovery of the online currency.
Bitcoin is the most popular and valuable online cryptocurrency available to date. Cryptocurrencies are essentially online currency created using various virtual blocks that require computers to crack algorithms in a process called mining, essentially discovering Bitcoins themselves. Knowing how to protect your Bitcoins is a way to secure your investment.
Use Multiple Wallets
A Bitcoin wallet is essentially an online bank account for storing your digital currency. Using multiple digital wallets is one way to keep as many of your Bitcoins as possible safe from online danger and hackers. Because of Bitcoin's recent surge in popularity online, it is essential to consider the option of using more than one wallet to manage all your Bitcoins without becoming a potential target of hackers.
Limit the Number of Bitcoins You Keep on Hand
Always limit the number of Bitcoins you keep in any virtual wallet you have created to avoid losing Bitcoins to hackers. Limiting the number of Bitcoins you keep within your wallets is similar to keeping only a limited amount of cash on you at all times in the real world.
Ensure You Are Using a Strong Password
Always ensure you are using a strong password to protect your Bitcoin online. It is also important to use your Bitcoin wallet password only for Bitcoin and no other online services. This minimizes the risk of having your account hacked. It's highly recommended to change any passwords you use for your Bitcoin wallets frequently.
Encrypt Your Wallet
Encrypting your wallet for Bitcoin allows you to set specific passwords that must be entered prior to having the ability to withdraw funds or complete any type of transfer. Encryption programs and services are made readily available online. They are also downloadable in different apps stores, depending on the brand of smartphone you use to complete your Bitcoin transactions.
Only Use Verified Transaction Services
Any time you are buying or selling Bitcoin with your virtual wallet, always verify the website or online service you are using is legitimate, credible, and has a positive reputation. Using only verified systems and online services to complete Bitcoin transactions greatly minimizes the risk of having your account hacked.
Conclusion
The more you know about protecting your Bitcoin from potential thieves and online hackers, the easier it is to maintain your wallets. Using multiple wallets and encrypting your wallet with any transaction you make online is necessary to ensure your digital Bitcoin currencies.
