Investing in cryptocurrency has become incredibly popular. Whether you merely dabble in Bitcoin or see it as the currency of the future, you’ll want to make sure your holdings are safely stored.
For that, you’ll need a reliable Bitcoin wallet with a user-friendly interface that provides fast and efficient transactions. For instance, you can create secure Bitamp Bitcoin wallet that delivers all those features and runs on an open-source blockchain.
However, one can never be too vigilant when it comes security of their Bitcoin wallet. But there are steps you can take to prevent potential losses.
Why Store Bitcoin in a Wallet?
When you enter the realm of cryptocurrency for the first time, it’s all about understanding how the exchanges and brokerages work. You sign up, deposit the funds, purchase your coins – but then what?
When you buy Bitcoin or any other cryptocurrency, you don’t have to store them in a wallet, but you’d need to have a deep understanding of how Bitcoin transactions work.
This process also involves many steps, which leaves a lot of room for human error. That is why most users choose to store their funds in a custodial wallet with the exchanges or a non-custodial crypto wallet.
If you create secure Bitamp Bitcoin wallet that is non-custodial, you hold the private keys to your wallet and have complete control of your funds. Therefore, storing funds in a crypto wallet is vital, but what steps can you take to make it as secure as possible?
Store Your Private Key Offline
When you create a Bitcoin wallet, you receive a private key that is used to access your funds. This is the only way to get to your coins, so keeping them safe is crucial. Typically, that means writing down the private key offline and storing it in a safe place.
If the private key sits in your email inbox, that can represent a massive problem if you get hacked. It’s also imperative that you never share your private key with anyone.
Be Mindful of Your Internet Connection
If you’re going to send and receive Bitcoin from your wallet, it’s not advisable to go to a coffee shop and connect to a public network.
If you’re away from your home or another well-known network, your best option is to use your phone’s hotspot to ensure your transactions and funds are safe. As an extra precaution, consider installing anti-virus software on your device.
Do Your Best to Avoid Crypto Scams
Unfortunately, Bitcoin scam emails are a reality. You may receive an email that seems perfectly legitimate, but contains a link to a website where you’re asked to enter your details.
These internet crypto scams are the leading cause of wallets being depleted of their funds. Before clicking on any link, ask yourself if anything seems out of place.
Focus on Smaller Daily Transactions
Your Bitcoin wallet is a lot like your physical wallet. Most people don’t hold large amounts of cash in their wallets, and the same should apply to your Bitcoin wallet.
If you’re storing a substantial amount of Bitcoin in your online wallet, it’s best to move it to a hardware wallet. It might be safer and easier to manage small amounts of money in your online wallet.
Use an Open-Source Wallet
There are significant benefits to using an open-source online Bitcoin wallet such as Bitamp. One of them is higher levels of security.
An open-source wallet offers full transparency, and many crypto community experts are constantly making improvements to the system. It doesn’t mean other wallets aren’t safe, but open-source wallet users have a strong incentive to keep it secure.
Finally, taking one or all steps to secure your Bitcoin wallet won’t make much difference if you’re not vigilant about it.
Often, all it takes is one unsecured internet connection and one missed suspicious link to jeopardise the safety of your Bitcoin wallet. Even if you trust someone, don’t give them the private key to your wallet, as they may be unintentionally reckless with it.
Keeping Your Bitcoins Safe in Reliable Wallet
If you’re investing or trading Bitcoin, a crypto wallet is a necessity. There are many types of Bitcoin wallets, and each comes with a set of advantages and disadvantages.
An online open-source wallet is a perfect place to start as you can remain anonymous while keeping your funds in a safe place. But there are important steps you can take to bring the security to an even higher level.
Store your private keys offline, delete suspicious emails, get anti-virus protection, and focus on small transactions on a day-to-day basis.