Last updated on January 2nd, 2018 at 12:00 am
Use these 4 steps to avoid theft and keep your Bitcoins safe.
Step 1 – Select a strong password for your Bitcoin wallet
Many people get into the habit of choosing the same password for all of their online accounts. This puts your Bitcoins at risk. Choose a strong password for your Bitcoin wallet. You can use software like 1password or Roboform to create and store your passwords for you – this way you will never use the same password twice ever again.
Step 2 – Use 2 factor authentication
Most online Bitcoin wallets provide the option of a 2 factor authentication process. This means that whenever you log on you’re required to authenticate yourself with an additional step other than your password. Most of the time this will be a verification text message sent to your phone. Even though this may feel cumbersome at times, using 2 factor authentication reduces the risk of theft drastically.
Step 3 – Backup your Bitcoin wallet
A backup of your wallet can protect you against computer failures and many human mistakes. It can also allow you to recover your wallet after your mobile or computer was stolen if you keep your wallet encrypted.
Step 4 – Use cold storage for large amounts of Bitcoins
If your wallet stores a large amount of Bitcoins make sure to keep it in what is known as cold storage. Cold storage means your wallet isn’t present on the web or on any other computer. An example for cold storage could be a paper wallet or a flash drive that has your private key encrypted on it.