How To Protect Your Bitcoin Wallet
Posted By Anirudh Bhardwaj | 30-Nov-2017
Protecting a Bitcoin wallet against online threats has become a major concern these days. As the bitcoin market is growing rapidly, there have been several threats to this digital currency in spite of the blockchain support. Many malicious activities have been reported over the past few months that have questioned the security and reliability offered by this so called cryptocurrency. It was initially perceived that the blockchain support is going to be sufficient to lend a safer environment for the bitcoin exchange. But there have been several threats to the bitcoin market in terms of hacking possibilities.
However, stealing a bitcoin is not that easy, thanks to the blockchain support. Owing to the blockchain technique, in order to steal a bitcoin, the hackers need to hack the entire network. For instance, if there happens to be a malicious activity in a particular block, then it will be revealed to all the other blocks in that network. So the only way is to hack the entire network. That seems quite intricate but still it can happen.
A bitcoin wallet is just like a virtual wallet which holds the Bitcoin tokens and facilitates Peer-to-Peer transactions in Bitcoins. A Bitcoin wallet gives you access to a private key and public key. The private key stores your wallet password and other sensitive information and is never meant to be shared with anyone. The public key on the other hand is an alphanumeric code which makes up your Bitcoin wallet address and is visible to everyone in the network.
The use of a unique private key for every bitcoin wallet adds to its security. Without knowing this private key, it becomes extremely difficult for a third party to steal your wallet. Luckily, no bitcoin wallet has been stolen till date but the threats are always there.
So, below are some basic tips and tricks that can be implemented in order to consolidate your wallet protection:
Keep Your Antivirus Updated
If you don’t have an antivirus or if your antivirus is outdated, then it can be precarious to your bitcoin wallet. Some serious exploits have been reported these days that try to trap you and could cost you your entire wallet balance. One example is a fake flash player exploit. The best way to prevent your wallet against such exploits is to have an updated antivirus protection. AVG is best suited for this purpose as it is specifically designed to offer internet protection. It is also advised to keep checking your PC time to time with firmware updates. You can also scan your PC with AntiMalwares.
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Be careful while installing the Mobile App
Bitcoin wallets are also available on android platform. You can download it from the playstore. But you need to be more careful while doing this. Recently, some trojans and other exploits have been reported in the android app including a malicious code in Price Tickers. So it is advised to always download the app via google instead of any other source. And if you don’t really use the app, then it is advised not to install it in your smartphone at all.
Secure Your Wallet With a Strong Password
Password protection is a very crucial step in maintaining your wallet’s safety. This is the first thing you need to ensure to keep your wallet safe. Always encrypt it with a strong password. The password should not be predictable and should be hard to guess. Also, don’t use the same password for multiple wallets and accounts. Every password should be unique or it can cost you a lot more.
Be careful while spending your bitcoins
It must be taken into account that once you send away a bitcoin, it’s gone forever. There’s no coming back. So you need to be more careful while spending your Bitcoins. It is better to use a trusted third party service such as Escrow service while releasing your payment.
What else can be done?
Beware of the scams. There are going to be many scammers looming across the internet constantly trying to lure you and get you in their trap. Also, try to maintain a backup of all your private keys but do this only if you are able to keep it super-safe. Otherwise it can prove to be way too hazardous.
So by simply following these few tips and implementing them, you can ensure safety to your wallet and bitcoin against all these potential threats.