If you are still a newbie in the field of Bitcoin and cryptocurrencies, then you should read these Bitcoin tips carefully. Being your own ‘bank’ also means taking full responsibility for it. News about stolen bitcoins or lost passwords, mistaken transactions as well as all kinds of scam are open secrets.
You could prevent all of these issues in advance by adhering to certain rules when using Bitcoin. Just learn how to best protect your investment with Switchere. Let’s get started!
Passwords and Private Keys
As soon as you register on exchange to buy your Bitcoin there, you will be asked to enter an email address and set up a secure password. You should use an accessible email address. Then it’s important to set up a secure password. Generally, it’s necessary to note that any password generated yourself can be classified as an insecure one.
The safest ones are those passwords that are generated by a special password generator, such as a Keepass. With such a program you can create different passwords with up to 64 characters, which cannot be cracked so quickly by a certain algorithm. As soon as you’ve purchased your Bitcoin and transferred it to a wallet, you will receive your private key.
This is an additional password for your associated public key that should never fall into the hands of third parties. With this key, you can access your Bitcoin from anywhere in the world. If you lose it, you will also lose your access to a wallet and your investment will be inaccessible forever.
Reliable Exchanges
Not every exchange you come across in Google is a reliable one. On the Internet, you can find numerous examples of providers who have stolen their customers’ deposits. That is, before you transfer money to a third-party provider, you just need to check its reliability.
Extensive research first includes online reviews. Quite often the largest and ‘oldest’ trading exchanges are also the most reputable and reliable ones. However, even these old-timers don’t offer complete security. Mt.Gox exchange hack in 2011 and QuadrigaCX criminal prosecution prove it.
Headquarters of an exchange, as well as transparency of founders and financing also play a big role. Bitwala is one of the best known and safest Bitcoin exchanges. There you can open a current account free of charge and purchase Bitcoin and Ethereum from a licensed bank.
Make a Transaction
‘Always double-check’ is a principle in this case. As soon as you send your Bitcoin, they’re irrevocably transferred to the recipient’s wallet. If you accidentally copied a wrong character into the address, your Bitcoin will also be sent to the wrong address. There are also hackers who find Bitcoin addresses on the clipboard and then replace them with their own.
Here is the main idea — you copy the address of the desired recipient and then paste the scammer’s address. So you should always check twice whether the desired address is also entered as the recipient.
Safekeeping & Accessibility
Even if the Bitcoin blockchain remains forever, there is no guarantee that you can access the assets stored there forever. Safekeeping and accessibility are crucial for the durability of your investment. There are several ways to save your private keys, including a paper wallet or a hardware wallet like the Ledger Wallet or the Trezor.
In any case, you should keep in mind that in the event of a fire or water damage, your wallet can become unusable. A good option is to store multiple copies at different places in order to be prepared for the worst-case scenario.
Don’t Talk About Money
Even if it sounds trivial, you should never talk about the amount of your investment. Nobody cares how and where you have stored your Bitcoin. Anyone who is talking a lot about their assets runs the risk of becoming a victim of theft. The right opportunity creates thieves and numerous hackers are waiting for the right moment.
Conclusion
Even though these rules for dealing with Bitcoin may seem a little cautious, they’re still very important to protect your investment. Also, keep in mind that these tips are only a small part of everything to think about. However, they shouldn’t stop you from building your own investment portfolio. The best thing to do is to start with a small contribution and see where the crypto journey will take you.
Leave a Reply