The craze surrounding Bitcoin and other cryptocurrencies has created an influx of investors looking to invest. However, before you click “buy,” there’s one important aspect you shouldn’t be able to overlook: cybersecurity.
In contrast to money that you deposit in banks, crypto isn’t protected and, if taken away, it’s virtually impossible to retrieve. So, securing your cryptocurrency wallet is as crucial as investing in the cryptocurrency itself.
Below are five things you need to consider before purchasing Bitcoin.
1. Not All Wallets Are Created Equal
A cryptocurrency wallet is the place where your Bitcoin is stored. However, there are several types, each with its own advantages and disadvantages:
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Hot wallets They are connected via the Internet (e.g. mobile applications extensions for browsers and trade wallets). They’re easy to use, but they’re more susceptible to hacking.
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Cold wallets Offline devices (like physical wallets or paper wallets). They’re safer, but they’re less convenient for frequent transactions.
If you’re looking to keep Bitcoin in the long run then it is recommended to use a Hardware wallet is usually considered to be the most secure option.
2. You Don’t Really Own Bitcoin–You Own the Keys
When you purchase Bitcoin What you actually have control of is your secret keys that you have to access your bank account. These keys let you transfer or spend your cryptocurrency.
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You lose your private keys and you’ll lose your Bitcoin for ever.
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Give your keys to someone else and they could completely empty your wallet in a flash.
The crypto community is often quoted as saying:
“Not your keys, not your coins.”
3. Beware of Exchange Risks
Many newbies leave the Bitcoin with exchanges (like Coinbase or Binance) because it’s simple. However, exchanges are a prime target for hackers.
This risk has been proven by history:
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In 2014, Mt. Gox (then the biggest exchange) suffered a loss of 850,000 Bitcoin to hackers.
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In the year 2019, Binance suffered a $40 million data breach.
If you are required to utilize an exchange, make sure you install strong security features, but you should think about the transfer of your funds to a separate wallet after having bought.
4. Cyber Threats Are Everywhere
The world of crypto is full of scams, ranging from fraudulent emails to fake applications. The most frequent threats are:
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Phishing scams that include messages or emails which trick you into giving your login details or keys.
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Malware malware which can record keystrokes or take wallet files.
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Fake wallet apps fraudulent downloads that are designed to impersonate authentic wallets.
How to secure yourself
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Only download wallets from trusted sources.
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Double-check URLs prior to entering credentials.
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Make sure your devices are updated with anti-virus software.
5. Strong Security Habits Are Non-Negotiable
Your best defense. Before you buy Bitcoin:
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Utilize Two-factor verification (2FA) on exchanges and wallets.
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Create strong, unique passwords–a password manager can help.
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Save the wallet as well as recovery words in a safe offline place (never keep them in clouds).
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Be skeptical of too good-to-be true deals–crypto frauds are all over the place.
Final Thoughts
Buy Bitcoin isn’t about just investing. It’s about being accountable for your security. A simple error could be the end of your life and there’s no repeats.
By gaining a better understanding of wallets, protecting the private key of your wallet, staying clear from the risk of exchange and implementing strong security practices, you can invest with more confidence.
The final promise of financial freedom comes with a requirement: you must protect yourself from it.
