Guide to Keeping Your Bitcoins Safe

The following guide will help you keep your bitcoins safe, protect you from a scam, thefts, or just your own mistakes.

by Viko
02 November • 3 min
In News

If you have invested in Bitcoin or another cryptocurrency, it is key that you never store large amounts of capital on an exchange. That’s why hacking is always possible, advises Oliver Dale, founder of UK-Based online media company Kooc Media, on Blockonomi.

There are two ways to go – you can either set up an offline wallet or you can consider investing in a special device, called ‘hardware wallet’, such as Trezor or Ledger.

When you set up an offline wallet, you get a unique recovery seed, composed of 12 to 24 random words. It’s important that you keep this valuable information to yourself, not posting it online.

Recovering your lost wallet is secured by the seeds, which prove that the crypto capital is your possession and give you access to it.

cryptocurrency hardware wallets

Recovery Seed Must Be Stored Offline

It may seem a pretty old school, but writing down your personal information on a piece of paper is the safest way to keep it only for yourself.

Storing your personal information on clouds like Google Drive or Dropbox is not advisable since you are vulnerable to hack attacks.

Another idea is that you buy a dedicated USB drive, that you should use only for storing your recovery seed.

You could also consider acquiring a hardware wallet, a device that stores your valuable information without exposing it to other computers. However, if you forget your PIN number and the secondary password you are pretty much screwed and you will lose your precious cryptocurrency.

Pretty good options for hardware wallets can be found for under $100 on the market, and specialists advise that the purchase is worth the money as you probably store data worth ten times this amount.