The Best Way To Protect Your Bitcoins Account

Money has changed shape over the years, from gold coins, to paper money, then to credit. While physical forms of money are very different, they are all still supported by the government and are thus the official monetary system currency. In 2009, Bitcoin plunged into the world for a currency that was completely different from one-currency not supported by government or banks but created through computer codes. This cryptocurrency or virtual currency has gained value and many users. According to blockchain.info, on April 23, 2015, there were around 14 million Bitcoins in circulation (an increase of around 1.5 million bitcoins from last year) with a market capitalization of $ 3.3 billion. More than 100,000 transactions per day occur in bitcoin. But bitcoin does not exist in any physical form and is not stored or regulated by government agencies, how to best protect Bitcoins safely?

We store cash or cards in physical wallets, Bitcoins are also stored in digital wallets. Digital wallets can be hardware based or web based (in the form of an online wallet). This wallet can also be on a mobile device, on a computer desktop, or stored securely by printing a private key and address on paper, known as a paper wallet. But is it completely safe on a digital wallet? The answer to this depends on how the user manages the wallet. Each wallet contains a set of private keys without which the bitcoin owner cannot access the bitcoin. The biggest danger in Bitcoin is that users may lose their private keys or stolen private keys. Without a private key, users will never be able to access the Bitcoins again. In addition to losing the private key, users can also lose bitcoin by computer malfunctions by hacking, or by physically losing a computer where a digital wallet is stored.

Offline mode

of securing Bitcoins is called cold storage. Cold storage wallets are not connected to the Internet and are thus less vulnerable to hacking. Since accessing a cold storage wallet can be comfortable, it's best to store your own Bitcoins. Keep Bitcoins in small quantities in online digital wallets for daily trading needs and save the rest in cold storage. Cold storage takes the private key in offline mode, thus reducing the possibility of theft. The practice of using cold storage is not only popular with individuals but even with cryptocurrency exchanges related to large numbers and often under constant threats by hackers.

Backup

Backup your entire bitcoin wallet early regularly. In the case of a computer failure, a regular backup history may be the only way to recover the currency in a digital wallet. Be sure to backup all wallet.dat files and then save backups in several secure locations (such as on USB, on hard drives, and CDs). And also sets a strong password for backups.

Software

Make sure your software stays up to date. A wallet that runs on non-updated software can be an easy target for hackers. The latest version of wallet software has a better security system that increases the safety of your Bitcoins. If your software is updated with the latest security fixes, you can avoid a major crisis because of enhanced security from the software.
Encryption
Encryption
add a layer of security to certain folders, files and messages because it can only be opened by someone who knows the right key for it. So encryption means using a password to be able to access a Bitcoin wallet. In cases where a cellphone desktop wallet, or hardware used, encryption is even more important to protect against intruders. Not only do you have to use strong passwords with the use of capital letters, numbers, and special characters, but we must memorize or be stored in a very safe place because the password recovery mechanism is very weak in the case of Bitcoin.
Conclusion


Since its introduction 6 years ago, there have been many incidents of hacking, theft and fraud involving bitcoin. For Bitcoin to grow in legitimacy, safe and reliable storage is very important. Backup is a simple precaution that can increase the security of bitcoin.

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