Safest Ways to Invest in Bitcoin
To keep Bitcoin, or to transfer it you should have a wallet. You must, however, maintain this Bitcoin wallet secure. Scammers and burglars will always be attracted to your Bitcoin. Especially if you are a HODler, dealing with significant sums.
Bitcoin is a decentralized asset, so people who are new to the market may be feeling a sense of insecurity in the system.
What they should focus on is the fact that, because there is no centralized body managing the asset, Bitcoin holders must assume complete responsibility for securing and protecting their wallets.
What exactly is a Bitcoin wallet, and how does it function?
The first step in receiving, storing, or sending Bitcoins is to obtain a Bitcoin wallet that is compatible with your operating system or device. A wallet holds a private key that only the owners know.
This private key serves as a link between you, the owner, and a public key (or a group of public keys) (numeric codes associated with a certain amount of Bitcoins).
There are 11 different ways to keep your Bitcoin wallet safe...
1. Select a hardware wallet
Which Bitcoin wallet should you select among the plethora of alternatives available?
If you’re worried about security, you should choose cold storage,
The use of a hardware wallet to store your Bitcoin is a secure option. Trezor and Ledger, for example, provide a variety of USB-like devices with pre-installed security layers and encryption capabilities.
This is because it is safer. Wallets like these are safer because they are not connected to the internet.
2. Store your private key in a secure location
Take your private key off the grid and store it in the real world’ to secure your cash. Rather than keeping your private key on any electronic device, simply write it down on a piece of paper. To minimize degradation, store it in a cool, dry location away from heat and direct sunshine.
3. Always connect to the internet over a secure connection
The number of public infrastructures is vulnerable and insecure. If you have a Bitcoin wallet on your laptop, try using your phone’s hotspot instead, and stay away from public wifi at all costs.
Stick to private or well-known connections where you may be confident that your relationships aren’t subject to security concerns. Most wallets use app shielding techniques to secure their source code.
4. Ensure that your antivirus software is current
Windows devices are very likely to be infected with malicious software, which can be found on the operating system. As a result, make sure you have up-to-date and reliable security software installed on your computer.
That is why it is very important to know on what device are you installing your wallet. The majority of attacks employ viruses and malware on devices that are easy to hack. To stay secure from forms of malware packages, keep your up-to-date.
5. Do not click on any links that are unfamiliar or questionable
Keep an eye on your internet activities and check the link of the site you’re on if something doesn’t feel right. Scammers can clone whole websites and use URL addresses that are nearly identical to the real ones. If you use an online wallet or any service that requires you to enter your private key, double-check that the URL address is correct.
6. Protect your online wallet with a secure password
If you use an online wallet, choose your password carefully. Personal data such as phone numbers and addresses should be avoided.
Rather, use an alphanumeric combination that only you understand. According to statistics, 52 percent of consumers use the same password for several accounts. Make sure your wallet password is one-of-a-kind.
7. Never give out your private key to anyone
Only you have access to the private keys. Don’t give them out to anybody, and don’t ask someone else to perform your transactions for you. Ignore any offers or requests that require you to share your private key with a third party or individual.
8. Keep your day-to-day transactions in a different wallet
If you need to make minor daily transactions, using a second wallet that you can top up as needed is an excellent idea. You may create as many Bitcoin addresses or wallets as you like.
Sorting your transactions and keeping the most essential ones distinct will make your entire portfolio more secure.
9. For online wallets, use two-factor authentication
Two-factor authentication is available in most online wallets, and you should always utilize it. It’s a low-cost, high-impact security solution.
10. Double-check the Bitcoin address at all times
Always pay special attention to the recipient’s address while conducting transactions. When you copy and paste a Bitcoin address and modify the copied output to another address, malware programs can ‘intervene.’ You may wind yourself transmitting your Bitcoins to someone else if you are not careful.
11. Create a backup of your digital wallet
If you lose your smartphone or it malfunctions, you’ll be able to access your wallet thanks to a backup. Make a backup copy of your data in a different or secure location.
To regain access to your wallet, if your phone is stolen, you can use backup codes. You might shift the cash to another wallet as a preventive step.
How Many Bitcoins Are There?
21 million is the maximum number of Bitcoins that will ever be produced. The last Bitcoin will be mined around the year 2140. In November, 90% of bitcoins have been mined. This is 18.85 million. 20% of Bitcoins are lost because the owners forget their private key.
Should I Capitalize the B in Bitcoin?
By convention, use a capital B when discussing the Bitcoin network, protocol, or system. Use a small b when talking about individual bitcoins as a unit of value (for example, I sent two bitcoins).
Where Can I Buy Bitcoin?
There are several online exchanges that allow you to purchase Bitcoin. In addition, Bitcoin ATMs —internet-connected kiosks that can be used to buy bitcoins with credit cards or cash—have been popping up around the world. Or, if you know a friend who owns some bitcoins, they may be willing to sell them to you directly without any exchange at all.
Finally, the security of your Bitcoin wallet is your responsibility. Because the cryptocurrency industry is always growing and security systems are improving, you should take all necessary steps and remain up to speed with the newest security enhancements and updates to keep your Bitcoin or another cryptocurrency wallet secure from ill-intentioned individuals.
The same goes for other parts of the crypto world, like Helium Mining.
These are the author's thoughts and they should not serve as financial advice.