Do you know about the largest cryptocurrency as of today? Bitcoin is one of the well-renowned and largest cryptocurrencies introduced in 2009 by a mysterious entity named Satoshi Nakamoto. Bitcoin rose in popularity when its price reached its peak in 2019. Undoubtedly there are wild swings in bitcoin’s price because of its volatile market. The value of bitcoin is affected by various factors, and the main is its demand and supply. The price swings of bitcoin are not only attracting individuals and the government but are also attracting cybercriminals.
After the invention of bitcoin, many reports registered of heists and hacks that have been done on exchanges, and in those hacks, numerous people have lost their funds. Because bitcoin doesn’t exist physically and is present in its digital form, there are higher risks of hacks by cybercriminals. Digital wallets are used to store bitcoins and other digital tokens, and these wallets operate online because they hold a private key that is stored online. Only through private key users can send their digital tokens to others, and it is important to protect your private key to avoid any fraudulent activity. You can learn to secure your cryptocurrency wallets through CryptoCode.
In simple words, the private key is users’ digital identity, and cybercriminals always keep an eye on your coins to perform the fraudulent act. Cybercriminals use techniques to either steal or transfer your digital tokens to their account under your eye, and therefore you must never compromise on the safety of your private keys.
Let us explore some ways through which you can secure your bitcoins, which are as follows:
Make use of a secured internet connection.
While transferring or trading cryptocurrencies, users must always use a secured internet connection and avoid using public Wi-Fi. Also, while using home networks, users must utilize a Virtual Private Network to add security. Making use of a VPN will change your location and IP address. Not only this, but it will also make your browsing safe and will protect your browsing from attacks and hacks.
Use cold wallets instead of hot wallets.
Cold wallets are the best digital wallets to store your bitcoin because these aren’t required to be connected to the internet. The best thing about cold wallets is that they are not vulnerable to cyber-attacks and prevent your private keys from unauthorized access. Many reports have been registered for other types of wallets from where attacks have hacked the wallets of bitcoin users.
Cyber attackers are always waiting for users to use a weak password and to provide them a chance to attack their wallets. It is always better to use a cold wallet and store your private keys on devices that aren’t required to be connected to the internet.
Make use of multiple wallets.
Investors and traders like to invest and trade in different cryptocurrencies, and also there is no specific limitation for creating different wallets. Users must make use of multiple wallets to secure their different cryptocurrencies. Users can use a wallet to store a large number of cryptocurrencies and one to carry out daily transactions. Using multiple wallets will secure your portfolio and will prevent any loss that can occur to your account.
Use a unique password.
The best way to secure your cryptocurrencies is by using a unique and strong password. A user must avoid using the same password on different accounts and apps. Also, it is crucial to use a strong password that is next to impossible to guess. Users must also keep changing their passwords to avoid the risk of hackers. Using two-factor authentication for your wallet will help in providing additional security.
Update the anti-virus software of your device
It doesn’t matter whether you use a web wallet, desktop wallet, or a mobile wallet; it is suggested to secure your device using the latest anti-virus software. Anti-virus software acts as a firewall that secures your device from malware attacks and unauthorized access. Devices where there is no anti-virus software, hackers take advantage of targeting those devices and try to hack the bitcoin wallet’s private key.