How to Safeguard Your Bitcoins


You worked hard for your Bitcoins. It’s important to keep them safe. A few, simple practices can prevent 95% of Bitcoin losses. Most losses are due to catastrophe, theft, hacking, or technical issues. While no solution can guarantee against loss, there are steps you can take to secure your Bitcoins.

Be diligent and protect your Bitcoins with these strategies:

Maintain control of your private keys.

You probably store your Bitcoins in a wallet. A wallet is nothing more than the storage of two cryptography keys – one public and one private key per Bitcoin.
If you’re keeping your coins on an exchange, you are not in sole control of your keys, and your Bitcoins are subject to loss.

Avoid using online wallets as a primary means of storage.

Encrypt your wallet and remember your password. Forget your password, and your coins are lost forever.

Back-up your wallet regularly.

An effective back-up strategy is to maintain three backups on at least two different types of media.

Keep one copy at a separate location. Making backups on your hard drive, a floppy disk, and a USB drive won’t do you much good if you store them in the same room and your house burns to the ground.

For the highest level of security, consider a hardware Bitcoin wallet.

This is a simple solution that costs less than $100.

Your private keys are never available to another person, and these devices are simple to use.

Your coins are also safe from any type of malware.

When using an online service, take advantage of 2-Factor Authentication.

Most exchanges provide the option to use this technology.

You’ll need a password, plus you’ll also receive a QR code to scan with your Smartphone. Without both, no one can access your account. Even a stolen password will be useless.

These easy steps are an effective strategy to maintain control of your Bitcoins. Be consistent and follow a regular backup schedule. Always remember that you’re most likely to lose your Bitcoins to an acquaintance. Keep your financial matters to yourself. No one needs to know about your Bitcoins.

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