Secure your bitcoin in 2017
In 2017, the price of the bitcoin unit reached the symbolic bar of 1000 dollars. The bitcoins’ and other cryptocurrencies’ owners should adopt some essential reflexes to ensure the security of their bitcoins.
1- Cold storage in case of an investment
If you store your bitcoins as an investment product and its value is or becomes significant, we strongly recommend you to choose one of the following two protection options:
You can use a USB hardware wallet like “Ledger Wallet” offered by the French start up named Ledger. It’s price largely worth the security of your assets.
Another method is called « bitcoin paper wallet », it’s free and consists in printing the Bitcoin addresses and private keys on a piece of paper. It is preferable to carry out the generation and printing of your paper wallet within a different computer that you used to acquire your bitcoins. While using this method, make sure that the environment of your computer is secured (without viruses, malware, etc…). You can afterwards import this paper wallet into the electronic wallet to realise your transactions at any time.
Finally, be aware that leaving your assets on an exchange platform is not advised due to the risks of bankruptcy and cyber attacks as we previously witnessed with MtGox, Bitfinex and others.
2 – Electronic wallet application for the regular use
For practical reasons, it’s more convenient to use an application that allows transfering or receiving your bitcoins in a few seconds. However, some precautionary steps are necessary to protect your bitcoins.
First, you should write down, preferably on paper, the recovery password of your electronic wallet. In case of loss of your device, this password will be required to recover your bitcoins. In addition, you could save it in the application such as 1Password, LastPass or KeePass (open source) to store and secure your passwords.
Secondly, we advise you to hold an amount of bitcoin that doesn’t exceed few hundreds of dollars if you frequently use your bitcoins to make purchases or short-term trading orders.
Furthermore, a number of applications allow two-factor authentication to reinforce the sign in process. The first factor is your existing password and the second is an algorithm that randomly generates a series of valid numbers during few seconds. These numbers are sent on your device as a text message or can be directly accessible via free application such as Authy or Google Authenticator.
Whatever your option is, do not skimp on protecting your bitcoins! You can check out the benefits of using bitcoins here 😉
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