What is Bitcoin Wallet, and How to secure them?

If you desire to store, send and receive cryptocurrencies, a crypto wallet is required. Crypto wallets are the safe storage space that stores cryptocurrencies technically. These are similar to bank accounts that store your cryptocurrencies and allow users to make transfers. It doesn’t matter whether you choose a web, desktop, or hardware wallet; you need to be careful while using it and transferring funds. Bitcoin wallets are attractive to thieves and hackers. It is first advised to store a huge amount of cryptocurrencies in your digital wallets as this highly attracts fraudsters.

What is Bitcoin Wallet, and How to secure them?
What is Bitcoin Wallet, and How to secure them?

Bitcoin is a digital currency that provides the feature of decentralization and anonymity. Some people take advantage of anonymity and try to use bitcoin for illegal purposes. This is not only this but because no one can track bitcoin transactions, fraudsters take the best advantage of this and try to hack or attack the user’s bitcoin and other cryptocurrencies. Lack of central authority is the main factor behind the hack of crypto wallets and exchanges. No central authorities or banks are involved, which means all responsibility comes on the shoulders of bitcoin holders to protect their crypto wallets. You can trade bitcoins via bitcoin era but choose a good platform like jt.org.

Table of contents

Bitcoin Wallet
Choose cold storage wallets
Store private keys offline
Keep antivirus software updated
Never open mistrustful links
Use VPN or secure internet connection

Before we move on and learn about how to secure bitcoin wallets, let us first learn about bitcoin wallets and their working ideology.

Bitcoin Wallet

A bitcoin wallet is a program or software that technically stores the digital tokens and provides users the authority to send and receive digital tokens. Bitcoin wallet isn’t like a physical wallet, and there aren’t any actual digital tokens that get stored in wallets. Bitcoin is a computer code or network with a long list of incontrovertible or irreversible transactions. The main step to start with investing or trading bitcoin is to get a bitcoin wallet. Many different wallets are available, but an individual needs to choose the wallet that is best according to their mobile device or operating system.

Bitcoin wallets generate bitcoin addresses and have a public key and private key. A private key is a digital code known to bitcoin owners and provides ownership of digital tokens. It must be secured appropriately as it is a connection between the bitcoin owner, wallet, and public key.

Moving forward, now we will learn some tips or ways through which we can secure a bitcoin wallet.

Choose cold storage wallets

There are two main types of wallets that include hot wallets and cold storage wallets. The main difference between both wallets is their connection to the internet. Hot wallets are internet-connected wallets, whereas cold wallets aren’t Internet-connected and store bitcoins in offline mode. A wide range of bitcoin wallets is obtainable in the market, but you must choose cold storage wallets to protect your bitcoins from cyber threats.

The best cold storage wallet is a hardware wallet that is in the form of a physical device. The encryption and security features are already installed in hardware wallets, and these are best as they aren’t connected to the internet.

Store private keys offline

Safeguard your wallet by storing the private keys in offline mode. You can either choose to store private keys on some device or a piece of paper. Make sure your private store keys at a protected place. If you choose to store private keys on paper, secure them at a dry place and protect them from direct sunlight.

Keep antivirus software updated

You don’t know most of the time, but your operating system is already exposed to malware. Before you store your private keys and bitcoins on your desktop, make sure to check whether your desktop computer has updated antivirus software or not. Cybercriminals try to tamper with user’s devices by sending malware attacks, and this will provide them access to your device and private keys.

Have you heard about phishing emails and messages? Internet scammers choose to attack private keys by sending phishing emails and links to user’s devices. You must be careful while you open any email, and you must avoid opening or accessing mistrustful links.

Use VPN or secure internet connection

Always use a VPN as it provides security to users while they access their bitcoins. Avoid making use of public Wi-Fi as these are prone to cyber-attacks.