Are you worried that you will lose your Bitcoins and crypto money for some reason? It’s normal to think that. If you’re wondering how you can lose your crypto money, here are some possible situations:
You’re solely responsible for the safety of your Bitcoins, altcoins, and other crypto money. Nothing and no one will be able to help you if you do something wrong that leads to you losing them.
Lucky for you, you can do something to protect your bitcoins and altcoins better. If you handle your bitcoins the right way, malicious entities will not be able to steal your crypto money.
A general advice: Improve your computer knowledge
A specific advice: Strictly follow instructions on crypto transactions without unnecessary actions
The first, most basic, and most important rule in handling bitcoins and other crypto money is…
When you want to use wallets, be wise in choosing your crypto wallet service provider, whether it uses a web platform or an app platform (hot wallet).
You can also opt to do the following:
You can use the following storage items as cold storage for your crypto money.
There are two factors crypto wallet users should take into account in using their crypto wallets: transaction volume and transaction value.
Transaction volume is the number (or rate) of crypto transactions you make. This can range from multiple times a day or less frequently. What passes as high- or low-volume is purely relative.
Transaction value is the value of the cryptocurrency transferred per transaction you make. There’s no definite number that represents “big value”. For easy reference, you can define “low transaction value” as less than or equal to the amount of money you would be comfortable carrying around as pocket cash. Anything larger than that can pass as high-value.
Use the following crypto wallet types for certain transaction behaviors
The most preventive way to secure your wallet is to not store huge amounts of crypto money in it in the first place. You can store small amounts of crypto money in your wallet for easy access. On the other hand, you must store the crypto money you won’t use in a safer environment.
Another security method is backing up your wallet. A backup of your wallet must be stored in a safe place. It can protect you from computer failures and a lot of human error. Backing up also allows you to recover your wallet after your access device (mobile or computer) is stolen, assuming that your wallet is kept encrypted.
Backup your entire wallet – There’s a chance that you won’t be able to recover a huge part of your wallet funds using your backup. This can happen if you only have a backup of the private keys for your visible crypto addresses. If you don’t know yet, some wallets internally use many hidden private keys. It won’t hurt to be thorough with your security practices.
Use many secure locations – If your backup is stored in multiple locations, it’s less likely that any mishap will stop you from recovering your wallet. Try using different media like USB keys, CDs, and papers.
Make backups regularly – Back your wallets up regularly to make sure that all recent Bitcoin address changes and all the new Bitcoin addresses you made are included in your backup. This may not be necessary in the near future since wallets that need only a one-time backup will be used soon.
Encrypt your online backups – Online-stored backups can are vulnerable to theft. Even computers that are merely connected to the Internet can be as vulnerable. Encrypting a backup that’s exposed to the worldwide network is definitely a good security measure.
You also have the option to encrypt your wallet or your smartphone for further security by setting a password for people who want to withdraw your funds. This protects you against thieves but not from keylogging hardware or software.
Use a strong password – Passwords that contain only letters or typical words are pretty weak and easy to break relative to hackers’ standards. Use a password that contains at least 16 characters’ worth of letters, numbers, punctuation marks, and other symbols. The strongest passwords used are created by programs specifically created to produce them. Since strong passwords are hard to decode, it’s no surprise that it’s hard to memorize. Thus, take time memorizing your strong password before actually using it.
Never forget your password – if you forget it, you will be locked out of your wallet for an indefinite time, if not permanently. There are very few password recovery options with Bitcoin and other cryptocurrencies. Passwords are so important in crypto that you’re expected to remember your password even after many years without touching it. Having a paper copy of your password stored inside a vault or any safe place is a good idea.
Bitcoin includes a multi-signature feature that requires transactions to be approved from multiple points to be settled. This system allows members to access the treasury while only allowing withdrawals that are signed by a certain number of members. Some web wallets use this to allow the user to control their money while preventing thieves from stealing the funds by tampering with a single device or server.
The latest versions of Bitcoin software lets you benefit from crucial security and stability fixes. Updates can prevent problems, from neglectable to severe, and offer new features that can improve service and security.
If you neglect your Bitcoins and other cryptocurrencies, you can lose them forever. You need to create a backup plan to make sure your Bitcoins successfully serve their purpose in your life. If you have no way to determine the locations and passwords of your wallets, they’re gone forever. Spend a little more time in protecting your crypto assets and you’ll see the huge difference when it comes to security.