If you are interested in modern technology, then you must be well aware of bitcoin. Bitcoin is a cryptocurrency that is decentralized, which means any government body does not control it. You are free while using bitcoin and can use it for any purpose as no transactions are recorded. Bitcoin is Internet-oriented, which makes it prone to some risks like hacking, phishing, etc.
Bitcoin transactions are irreversible, which means if you have sent bitcoins to anyone, then you cannot get it back in any way. So, you must be careful while using bitcoins as a single mistake can make you lose all your bitcoins. There are several risks related to bitcoin, but you can avoid them easily by readings tips for better Cryptocurrency analysis.
There are some simple tips that you can follow to ensure the security of funds while using bitcoin. You can take several precautions to keep your funds safe and make bitcoin transactions without any risks. Some of the most useful and fantastic security tips for bitcoins are listed in the paragraphs below.
1Avoid using web wallets
When it comes to safety while using bitcoin, then it highly depends on the bitcoin wallet that you are using. Web wallets are completely based on the Internet, which makes them prone to cyber-threats, such as hacking and phishing. So, to ensure the good safety of your bitcoins, you should not use web wallets as there are several other safe wallets that you can use.
If it is necessary to use web wallets while making a transaction, then you must transfer the bitcoins to another wallet as soon as the transaction is complete. It is the only way to keep your assets safe while using web wallets.
2Don’t allow employee’s access
If you have a business that involves bitcoin transactions, then you need to be extra careful to ensure security. You must ensure that no employee has access to the bitcoin wallets as if any one of them does have access, then he can transfer all the coins to his wallets, and you will not be able to do anything as transactions are anonymous. So, you must be careful and strictly prohibit the employees from accessing the wallet.
If your organization requires your staff to access the wallets, then you can use several sub-wallets and assign each one to each employee. Employees can use these encrypted wallets to make transactions according to their needs and requirements.
3Keep both hot and cold wallets
There are two types of bitcoin wallets; hot wallets and cold wallets. Hot wallets are online wallets that are connected to the Internet and are highly risky. On the other hand, cold wallets are offline wallets that offer better security. If you are related to an online business and need to make regular online transactions, then you must use hot bitcoin wallets as it is highly useful.
Hot Bitcoin wallets are not safe as they are online, so you must keep minimum funds in a hot wallet and keep bulk bitcoin in cold wallets. You must keep only the needed number of bitcoins in hot wallets so that the risk of theft or hacking is minimized.
4Maintain a backup
It is highly crucial to maintain a backup of your bitcoin wallet so that in adverse situations, you won’t lose your bitcoins. A computer is a machine, and it can crush or break anytime, so you must maintain a backup of your bitcoin wallet offline. You can make several backups and store them in different locations. With some wallets, you need to create a backup after every transaction, whereas in some of them, you need to create a backup after a certain number of transactions, for instance, 100.
5Try using hardware wallets
A hardware wallet is the most secure bitcoin wallet that you can use. If you want to ensure the safety of your bitcoin transactions, then you must use this wallet. It stores the private keys offline in a flash drive, which you can access anywhere and anytime. It is quite convenient to use, and it is considered to be the safest among all bitcoin wallets available.
To summarize, there are several tips that can help you to enjoy excellent security while using bitcoins and avoid all the risks.