As more and more people are turning to trading and investing in Bitcoin and other cryptocurrencies, there seems to be some concern for protection. We keep reading that there have been Bitcon scams happening and coins getting stolen.
Although blockchain technology is inherently safe, there are some weak links in the process that leaves your currency vulnerable. And it is up to you to make sure that you have done everything to protect it.
Unfortunately, when Bitcoin or other currency are stolen, there is virtually no way to get them back. Prevention is the best medicine in this case.
Before moving forward, here is an ultimate step by step guide to protect and buy cryptocurrency for beginners:
In this article, I will go over several things you can do to protect your cryptocurrency.
Table Of Contents
1 – Use a secure wallet
When you buy Bitcoin or any other cryptocurrency, then you have to put them in a “wallet”. There are different kinds but the safest is the hardware wallet that is not only not connected to the internet, but it isn’t even on your computer at all.
It is essentially a mini hard drive that has the codes for the Bitcoin that are on the blockchain. So while your coins are safe and sound on the ledger, this is how you will access them.
The next best thing is a desktop or cold wallet. These are stored on your hard drive of your computer, but are not online. Since they are not stored online, the only way for you to lose them is for your computer to be hacked and then they would need to hack their way into your wallet.
Lastly, an online wallet needs to be on a site that is trusted and secure and not likely to be hacked. The site should use some advanced encryption so make sure to do your homework before you store your Bitcoin there. And only keep as much there as you need to spend and then send the rest to your hardware or desktop wallet.
If you’re asking “Where can I get a bitcoin wallet” then the first thing is to check out sites like that one that give you a lot of different options and that have gain faith in existing customers.
2 – Keep a backup
Imagine you turn on your computer to see the blue screen of death. And then you realize that your digital wallet was a desktop one and you may have lost your keys.
This doesn’t need to happen if you back up your wallet every day. Not only should you back it up, but you should keep it on multiple devices so you can be 100% sure that it is not ever going to get lost or the disc compromised.
3 – Keep your wallet updated
There are frequent software updates to your wallet which should be downloaded when they happen. They usually are patches for a weakness in the code that could be exploited by a hacker or even sme malware.
By keeping the software updated, you are keeping your wallet more secure. When an update happens, hackers are on the lookout for people that haven’t updated their software because now they know what the weak link is.
4 – Always use a secure network
You may love checking your Bitcoin value to see how much it has gained today while you sip on a cappuccino at your favorite coffee shop. If you do, then you are opening yourself up to having your computer or phone hacked through the public wifi that the shop is offering.
Never use your computer or phone with sensitive apps like your digital wallet or even your regular banking. It is very easy for somebody to access your accounts by recording your keystrokes and gaining your password while on your computer.
Even at home, you should make sure that your router is secure. Even with the right password, some hackers can access your router and get information that can help them steal your wallet.
Make sure that the router has an encrypted connection so they can’t get in. And, change your password every three or four months to keep it secure.
5 – Watch out for phishing attempts
One of the easiest ways for a hacker to get our keys is for you to simply give it to them. Of course, you wouldn’t knowingly do this, but this is how phishing works.
Usually, you will get an email that looks official and doesn’t hint at anything scammy. The most common phishing attempt is to say that
“your credentials need to be updated and that you should go to their website and do this to avoid being locked out of an account”.
This would never happen in an email sent by an actual authority so don’t fall for the scam. If anybody asks you for your login information or to update it on a site then be very suspicious.
See More: 2-Main Strategies to book profit from Altcoin or bitcoin while trading at low prices!
As we go step by step, first of all we need to keep our cryptocurrency safe in a secure wallet, backup your wallet every day or atleast 2 days a week, always keep your wallet updated, and use a secure network while log-in or doing any transaction (Don’t use public network to check your crypto value) and last but not the least, don’t open phishing emails. Always open official website by checking the link thoroughly. Minor mistake can ruin your cryptocurrency.
Note: These days, investing in a ICO are so popular but before proceeding, check out the steps to evaluate your best ICO investment.
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