How to secure your Bitcoin wallet

As bitcoin captures the imagination of consumers and businesses around the world, the issue of security also comes to the fore. Although bitcoin transactions are irreversible and publicly recorded, the mere fact that it is a digital currency attracts lots of cyber thieves.

Bitcoin usage is projected to grow in Nigeria as the naira continues to weaken against the dollar and government fiscal policies persistently have debilitating effect on the economy in 2017.

Already experts are beginning to report an uptake in bitcoin adoption by businesses and individuals. Invariably downloads of bitcoin wallets would also be on the rise.

So if you have gotten yourself a couple of bitcoins and you are wondering how to ensure a hacker does not take it from you, we have a few suggestions from different bitcoin platforms.

To further buttress why you need to secure your bitcoin wallet, according to online security advisory firm WeLiveSecurity, stolen bitcoins retain their values and usability, and although numerous techniques have been proposed for tracking them, none of these have actually been implemented.

In view of that, CoinReport, a global currency news platform recommends that bitcoin users only store a few coins on their phones or computers which could serve as spending money. The rest of the coins should be secured in another location.

Another measure to take is to encrypt your wallet. By encrypting, you set up a very strong (at least 16 letter) password with capital letters, punctuation marks, numbers etc. The disadvantage of this measure is that hackers can still use software to log your keystrokes and if you ever forget your password, your coins are gone. Hence if you created such a password ensure you write it down somewhere and keep it in a very secure place where you can easily remember and reach it.

You can also back up the entire bitcoin wallet. Do not just backup your visible bitcoin addresses otherwise you may be able to restore your money.

Welivesecurity notes that backup can be done on a more regular basis using different media and locations. Set up a strong password on backups that are on your computer or phone. The need for multiple secured locations arises for when you lose your USB for instance, you can easily go for another backup in another location.

Furthermore, keep your bitcoin app up-to-date. Most wallets are always updating their software with the latest security measures. Hence it is in your own interest that yours is updated. It is also necessary to update your computer and phone software.

Storing your bitcoin wallet in a cold storage is also necessary. A cold storage refers to when you store your wallet in a location that is not connected to the internet in order to reduce susceptibility to hacking. Many software wallets offer cold storage.

Finally, think about the future of your wallet. Who else knows about your wallet or more to the point, when you die, what happens to the money in your wallet?  If you die without a will or testament for your wallet, your money might be lost or divided amongst your interstate heirs.