Of all the advantages and functions crypto provides to its users, the most important one is that it makes sending and receiving payments all across the world a lot easier. It reduces the transaction time and also makes the payments more efficient, making them suitable for business organizations who require fast cash flows in order to execute operations on a daily basis. However, it should be known that since one face of the crypto is its advantage of this aforementioned convenience, the other face is the inherent risks associated with digital currencies such as BTC. This is one of the major principles of finance, that the greater the return on a security or an asset, the higher will the underlying risk be. Therefore, crypto also comes with its risks, volatility in its price being the most significant risk.
Also, of the concerns that are associated with all the forms of financial investments, security is one of the core concerns of every investor, in every investment category. Similarly, the users of bitcoin are also very particular and concerned about the security features of the crypto which protect it. You should know that since crypto is a digital asset, it exists on a computer system or program, and is therefore exposed to threat and dangers such as hackers and scammers threat and the danger of getting your money stolen and invasion of your private and sensitive information or credentials.
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The purpose of this article was to research ways through which users and holders of bitcoin can protect their holdings and therefore be relaxed that their holdings are safe. This will ensure the safety of not just the money, but also the private and sensitive information of the user. Sit back and just go through these ways which can guarantee you a protection over your crypto:
So, without any further ado, let’s hop on to these ways, which are as follows:
1. Distribute Your Total BTC holdings into multiple wallets
You should be aware of the fact that one of the most common ways of losing all your crypto is if you had placed them in a single wallet and that wallet got stolen, hacked or lost by you. Therefore, you have to be very particular about keeping your crypto inside the wallet given you can lose all of it in case you lose it to the hacker or anybody who can access the wallet.
If you are thinking of owning multiple wallets and dividing your crypto inside them, well you are in luck, as this is not only possible but also a great idea. There is no limit to the number of crypto wallets that a person can own and divide their digital currencies inside them to store them. Therefore, similar to how a person divides their money balance into multiple bank accounts in order to enhance the security and safety of those savings, in case one account is compromised, multiple digital wallets can be used in order to store your bitcoins in different ones to make your crypto savings more secure and can also be thereafter used for different uses and purposes.
2. Protect Your Privacy
One of the most important considerations right after you buy your digital currency is how to keep it protected and ensuring that your private key is absolutely safe from any kind of external approach or attack. It is vital to hold these private keys private and not share it with any person whatsoever.
Other than the fact that your digital currency holdings are exposed to illegal activities and attacks, it should be known that there is another very important aspect of this concern, that is the exposure of your credentials will also allow the other person to get access to your important and sensitive data, for example your bitcoin transaction history and the total amount of bitcoins you own or hold inside a wallet. It is vital to know that this is an example of sensitive information, which is required to be kept private in order to maintain the safety and security of your crypto.
3. Always remember to back up your keys
For those crypto holders who store their wallets and their keys on their laptops or desktops (computer systems), they should know that this is not secure enough, and that they should increase this security layer by also making sure that these wallets that they have stored their crypto in, our also backed up on another system. One thing that should be given attention to while backing up your wallets is that the system which is being utilized to back up your keys and wallet should be equally secure and safe.
Employing these features will enable the crypto holders to store their public and private keys inside their digital wallets, further inside a computer file. It should be known that right after the keys are stored within a file folder, a pen drive or a hard drive can be used to carry this file folder, protected by encryption.