Cryptocurrency appears to be the hottest new way of moving money across the internet. Bitcoin has gotten a lot of hype, and perhaps could be called a “craze”. Is it simply a passing fad or will it grow in value and stick around for the long haul in our world of rapidly growing technology?
Either way, if you are using Bitcoin right now, you have to use carefully. Here are some tips to keep in mind while you are dabbling in cryptocurrency:
Keep multiple Bitcoin wallets and act fast if one is stolen
Bitcoin does not restrict the number of wallets a person can have. You should use this to your advantage, and keep separate wallets for spending money, saving money (a few of these), and receiving payments. If one of your wallets is stolen, at least the thief will not have access to your entire Bitcoin currency.
If you are the victim of theft, act immediately and transfer the money out before the thief can use it. This might not always work, but in some cases it can save at least some of your money. Store your “savings” wallets on a flash drive and it won’t even be accessible online unless you plug it in to transfer funds.
Protect your privacy and embrace encryption
Hackers can take a look at your transaction history and make quick connections as to which separate wallets belong to you. Use a mixing service when making transactions between your wallets. There are several mixing services available today, including Blockchain.info, BitLaundry, and The Bitcoin Laundry.
Be sure to encrypt ANY wallets that you are storing online, and even those on the flash drives you are hiding under your bed. Use different passwords for every wallet. It may sound difficult but it is a necessary measure.
Keep your computer clean and don’t use mobile apps
Be sure to consistently update and check your anti-virus programs. If you are going to protect your Bitcoin wallets, the first step is keeping hackers out. If you receive alerts from your anti-virus program, act immediately. Fix the issue, move the money-whatever you need to do.
Mobile apps open another door for your money to be stolen. The mobile app may be super convenient and time-saving, but if your cell phone is lost and falls into the wrong hands, you can kiss your money goodbye. Android has already had a flaw in the Bitcoin app, although it was quickly fixed.
Use the “cold storage” method
Although storing your extra wallets on flash drives and hiding them around your house IS a great way to keep them safe, it’s kind of a pain. Especially if your memory is not so great and your hiding skills are-and you end up hiding your own money from yourself. There are ways of protecting your Bitcoin in offline files that are never actually ON the internet.
A description and instructions of Bitcoin’s “cold storage” method can be found online.
Don’t brag about your finances and don’t invest your life savings
Although your sudden accumulated wealth is exciting and you may be tempted to brag to all your friends, neighbors, and co-workers about your investing expertise-DON’T. A lot of people are still ignorant to Bitcoin, and they aren’t going to have any idea how you made your sudden fortune. Drawing attention to this will only put a target on your back and open the door to hackers and thieves.
Although Bitcoin may be rising fast right now, you should think twice before investing. There are many factors outside of your control that can make Bitcoin suddenly tank-widespread compromises due to hackers, forging, and changing laws regarding Bitcoin.
Remember that although using Bitcoin is incredibly easy and fast, protecting it might not be so easy. Follow these rules and be vigilant while monitoring your wallets and protecting your PC.