Bitcoin is a hot commodity lately. This cryptocurrency is usually at the top of experts' and users' lists of recommendations for investments in the digital world. If you're thinking about using Bitcoin or have already started your crypto journey, there are steps you can take to secure your currency. Here's how to protect your Bitcoin wallet.
1. Use a Hardware Wallet
There are a few types of cryptocurrency wallets. Hard wallets connect to the internet for you to access at any time. This constant internet connectivity comes with certain cyber risks[1], though. If you want more protection, use a hardware wallet.
Hardware wallets are "cold," meaning they do not connect to the internet, but you can still receive funds at any time. The disconnect makes it harder for cybercriminals to hack or breach your Bitcoin. Trezor and Ledger offer various hardware wallets that store your currency in an external, USB-like device.
2. Keep Your Private Key Offline
When you use a hardware wallet, it doesn't actually store all your cryptocurrency. Instead, it stores a private key. This private key corresponds to a public key that includes certain amounts of Bitcoins, giving you the correct balance.
You must keep this private key secure. You can keep it offline by writing it down on a piece of paper and storing it in an emergency disaster kit that only you have access to[2]. The more secure and offline it is, the less you have to worry about it.
3. Encrypt Your Wallet
Encrypting your wallet is a helpful step to take. You can start simple with two-factor authentication and go from there. Any form of encryption will help. Two-factor authentication helps with verifying your identity in two ways so that cybercriminals have a harder time breaching
