Bitcoin is a digital currency that can be used to buy and sell goods and services. Bitcoin transactions are recorded in a public ledger called the blockchain, which means they’re transparent and open to everyone to see.
One thing that makes bitcoin lucrative among digital currency buyers is its price. The price of bitcoin has soared by more than 540,000% between 2012 and 2022. In such a situation, it’s no surprise that everyone is rushing toward buying bitcoin to gain maximum returns.
However, as individuals make strides in crypto investments, they also need to consider ways to secure their cryptocurrency. This is especially important in today’s world, where attackers are armed with cutting-edge technologies to initiate and execute attacks.
To secure cryptocurrency, you need to understand a new term, i.e., crypto custody. Crypto custody is the process of storing, transporting, and safeguarding your digital assets.
For bitcoin, there are many ways to secure your bitcoin custody. Let’s explore some of the most effective ways to secure your bitcoin custody so that you become less vulnerable to the advanced attacks aimed at gaining access to your wallet.
Use a Hardware Wallet
There are many ways to secure your bitcoin, but one of the most important is using a hardware wallet. A hardware wallet is a device that stores your private keys offline and provides an extra layer of security for your funds.
This means that if someone were to hack into your computer and steal your private keys, they would not be able to access them without the physical device. It also makes it easier for you to manage your funds because you don’t need to worry about losing access by losing your phone or forgetting a password.
You can use any number of different types of hardware wallets depending on what type of device you want to use: USB sticks, SD cards, or even physical devices like Trezor or Ledger Nano S.
Enable Two-Factor Authentication
Two-Factor Authentication (2FA) is the most important security feature you can enable on your bitcoin account. It’s a way to protect your bitcoin using two different methods: something you know and something you have. In the case of 2FA, that second thing is your mobile device.
When you enable 2FA on your account, it will ask for a code that’s sent to your phone whenever you log in from an unrecognized computer or device. This makes it much harder for anyone to get into your account unless they have both knowledge of your password and access to your phone at the same time.
If someone did manage to steal your password somehow, they wouldn’t be able to get into your account without also having access to your phone which is usually kept in a secure place. This makes it much harder for hackers or even people who know you well to get into your accounts.
Store Your Wallets in a Secure Place
Keeping your bitcoin wallet in a secure place is an important step to protecting your cryptocurrency. As the number of daily bitcoin transactions increases, so does the need for safe storage of your private keys.
In December 2020, there were about 330,000 daily transactions for bitcoin. By early January 2021, there were about 400,000. This is more transactions per second than were made using other cryptocurrencies at the same time.
Bitcoin wallets are only as safe as the place where they’re stored. If you keep them on your computer, it’s important that you keep the computer secure at all times. Don’t leave it unattended in public places, and turn off any unneeded services (like Wi-Fi or Bluetooth) when you’re not using them.
If you have an iPhone or iPad, set up a passcode lock so that if someone gets their hands on it, they’ll be unable to access your wallet without knowing the passcode.
If you have a desktop computer at home, consider buying a small hardware wallet and keeping it on an encrypted flash drive next to your computer so that if there’s ever anything wrong with your main machine, the hardware wallet will still be accessible.
You can also store some amount of bitcoin in an online wallet but remember that these wallets are connected online and are, therefore, more vulnerable than offline wallets (and even hardware wallets).
Summing Up
Bitcoin has dominated the cryptocurrency market and is still steadily on the rise. In fact, bitcoin is owned by 77% of crypto owners in America.
The need to secure your bitcoin has never been higher. With the recent hacks and theft of bitcoin, investors are becoming more aware of the need to secure their bitcoin. However, there are many ways you can secure your Bitcoin with relative ease. We hope you enjoyed reading this article and that it has helped you understand how to secure your bitcoin.
