The Simplest Ways to Protect Your Bitcoin from Theft

Bitcoin can be an incredibly wise investment and, like any important asset, it’s important to keep it protected. Here are a few quick and easy ways that you can keep your bitcoins safe from theft.

I recently completed an infographic at Beat The Fish, which includes these methods and several others for keeping your Bitcoin safe.

Common Bitcoin Threats

There are some very tricky people out there that aim to take advantage of Bitcoin users, accessing sensitive information and stealing currency. It’s not just hackers, however; there are quite a few threats to Bitcoin users that could put you out of a fair amount of money.

Ransomware Viruses

There are some very tricky hackers out there that will encrypt your device’s files and demand a ransom in return for decrypting them.

Fake Bitcoin Wallets

Phony Bitcoin wallets do exist. If you’re not careful and sign up to one of these services, there is the chance that you could end up compromising sensitive information. So, be sure to do extensive research before you sign up to any specific service.

Passwords Being Compromised

If you’re not cautious with your logins when using Bitcoin exchanges and other cryptocurrency services, an unauthorized person may be able to access your passwords.

Don’t Get Burned, Get a Cold Wallet

The prospect of buying Bitcoin may seem a bit daunting now that you know about all of the scams out there but, rest assured, there are a few simple ways to protect yourself. The easiest way to keep your cryptocurrency safe and secure is by getting a “cold wallet”, an offline Bitcoin wallet that stores your currency.

A cold wallet (or a hardware wallet) keeps bitcoins safe on an encrypted device that is not connected to your computer. Most users are attracted to web wallets, since they present an easy way to store your cryptocurrency. However, while they are a convenient option, they are vulnerable to theft, due to having your Bitcoin stored on the web at all times.
There are a couple of cold wallet options available to you, such as Ledger and Trezor. Their costs range from $75 to $100 – but it is worth the extra money you’re spending to keep your bitcoins safe from theft.

Two Step-Authentication

Most Bitcoin users employ a two-step authentication process when accessing their funds. The most common type of two-step authentication will send you a text or phone call to have you verify your identity. However, these types of communication can easily be intercepted by hackers, so it’s best to look into alternatives.

Using an app like Google Authenticator or Authy helps to really add an extra security measure when accessing your wallet. When you want to access your wallet or make transactions, these apps will generate a one-time password that must be used within a number of seconds. These apps make it much more difficult for anyone besides yourself to gain access to your Bitcoin.

Using these methods, it should be easy for you to protect your bitcoin investment from internet scam-artists. You can look forward to having a safe and worry-free experience with cryptocurrency.