The blockchain is as secure as it gets. Yes, you often hear about Bitcoin scams and things like that. Yet, not one of them has happened because somebody was able to hack the blockchain.
They are either done in an exchange that is off of the blockchain, or they manage to hack into somebody’s wallet. Does that mean your BTC wallet is going to cause you to lose your money eventually?
No, it just means you have to take some precautions to make sure you don’t. If you follow these tips then your money will stay safe and sound.
1 – Encrypt it
This is mainly a fancy way of saying that you need to create a strong password. Your weakest link right now is a weak password. You can just think of one that combines uppercase, lowercase, numbers and symbols and choose them at random and it will be harder to hack.
You should also be changing your password at least once a month. Also, make sure that you don’t use that password for anything else. Many times people get access when another app or website is hacked and they are able to figure out your password for other applications.
Your best bet is to use a random password generator that changes all the time. That way you can really protect your Bitcoin investment.
2 – Use two factor authentication
Even with a strong password you still could find your password hacked. If you encrypt it is a long shot but you should still have a backup.
Using two factor authentication is that second line of defense. Since nobody else will have access to your phone, at least in theory, then you can ensure that if they get your password they can’t do anything with it.
Biometrics on a smartphone is the best way to make sure that even if somebody does manage to also steal your phone that they can’t access the wallet without your fingerprint.
3 – Use a cold wallet
As I said earlier, an online wallet is generally the weak link in your Bitcoin security. If you have a cold wallet then you won’t have your Bitcoins hanging out on a cloud somewhere.
A cold wallet is effectively a hard drive in which all of your Bitcoins plus your private keys are stored. Sort of like a small flash drive or USB.
Most people with cold storage use both an online and offline wallet. They keep just a few coins in the online wallet so they can pay for things or recieve money quickly without needing to be at their PC where they keep the offline one. That way if they do get hacked, they don’t lose all of their coins.
4 – Update your software
Just like any software or device, if you don’t keep it updated you are susceptible to hacks. When an update comes around, it almost always includes a patch to improve security. At some point, the developers find a bug that can be exploited or some other weak point and then send out the update to shore it up.