Securing your precious cryptocurrency should be a top priority. This means you need to think about the safety of your wallet and how to store your coins securely.
While a hardware wallet could at the first glance appear to be the right solution for anyone for whom safety is the number one priority, these wallets may not fit the bill in certain cases, such as if the amount of crypto you intend to store does not justify the $200 expense on a hardware wallet, or you just intend to store the currency temporarily in a hot wallet for use for various purposes.
If you are going to save your cryptocurrency in a wallet other than a hardware one, here is what you can do to ensure that the cryptocurrency is safely kept.
Encrypt the Wallet
Your first line of defense against unauthorized use of your wallet is a strong password. This means you should use a combination of small and large letters, numbers, and special characters.
The password that you choose to access the wallet should be unique and memorable so that you do not forget the password. And it should be based on something that only you know. For example, it could be an excerpt from your favorite book or a dialogue from a film that you really like.
You should ensure that the password you choose is written down and kept somewhere under lock and key. This would allow you to recover your account in case you forget your password.
Two-Factor Authentication
Choose a wallet that comes with two-factor authentication (2FA), so that even if someone guesses your password or manages to break into your wallet, they would not be able to access your account without entering the 2FA code. Wallets are usually secured either by a biometric 2FA or using a third party authenticating software like Google Authenticator.
Keep Your Wallet Updated
Whether you use a mobile wallet or one meant for a desktop, you must ensure that you always use the latest version. Updates can often bring with them the latest security updates from the wallet-maker, which are crucial to keeping your bitcoin safe. You will also be able to enjoy new functionality if you keep walled up to date.
Multi-Signature
A multi-signature wallet requires that all the parties involved authenticate a transaction before it is made. Using such a wallet will ensure that even if someone gets access, they would still need the approval of other stakeholders before a transaction can be made. This acts as a security feature.
Offline Transaction Signing
If you can, you should make use of offline transaction signing. Internet connectivity is used only partially in these type of wallets, where the bulk of the cryptocurrency is held on a computer that remains offline, while another computer is online.
The offline computer signs off on transactions, while the online computer creates unsigned transactions. Although this increases the amounts of steps involved in making a transaction, the fact that most of your funds are not exposed to the internet adds an element of safety.
When you make a transaction, you will have to do so on the computer that is connected to the internet and then save them on to a thumb drive or another media and then sign them on the offline computer and then finally send the signed transaction on the computer with the internet connectivity.
Back-Up Your Wallet
A number of wallets allow you to back up your transactions and other data and then encrypt them. If your wallet allows you to do so, you can keep the backup data on USB Drives, CDs, and even paper.
This can prevent loss of access and also allow you to recover a wallet in case you lose a device such as a mobile phone on which the wallet rests.
Once you purchase your Bitcoin through Oobit Pay, you will need to give serious thought to your wallet’s security. After all, you have just spent your hard-earned cash to purchase Bitcoin, now you do not want to lose it all just because of some minor lapse, do you?
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