How to Protect Your Bitcoin Wallet

For many people, Bitcoin is the future. The benefits of this digital asset surpass the rather unstable nature of the coin market.

That’s why over time the cryptocurrency has become a much more popular method of conducting online transactions all over the world. Users turn to Bitcoin because it allows them to keep a certain level of privacy while using it. 

For example, with Bitcoin, you can avoid fees or fluctuating exchange rates. As a decentralized currency, the coin gives users control over their assets.

However, do you know exactly to what extent you are protected? The thing is, although people use it for anonymity, Bitcoin is not completely anonymous. And many times your Bitcoin wallet can become a target of cyber-criminals.

Here is everything you need to know in order to prevent this from happening.

How to Protect Your Bitcoin Wallet

Is Bitcoin Really Safe?

Cryptocurrencies, in general, have proven to be a secure option for privacy-conscious users. However, even they can’t entirely avoid cyber-attacks.

And to make the problem worse, authorities cannot track stolen bitcoins. It means that if you lose coins, it’s impossible to get your money back. Therefore instead of waiting for this to happen, the best thing to do is to prevent it on time.

Moreover, Bitcoin is not encrypted and all of the transactions are publicly exposed. They can be monitored and easily tracked back to you. Skilled hackers can find your IP address through your Bitcoin transactions.

Besides cyber-criminals, keep in mind that even your Internet Service Provider (ISP) can see your activity. This means that every time you log in to make an exchange, and use Bitcoin, your ISP can see this.

Two other possible risks are a man-in-the-middle attack, where hackers install malware that can intervene in your crypto wallet, and snooping. It’s when cyber-criminals, called snoopers, monitor your activity and can hack into your Bitcoin by guessing your password. Fortunately, there is a way of protecting your Bitcoin wallet. As a matter of fact, there is more than one.

How to Protect Your Bitcoin Wallet?

Rule number one – never share your transaction information in public spaces, such as the Internet, and make sure that you always use strong passwords. The best thing to do is to use a random one instead of a personalized password and make sure that the password is only used for your Bitcoin wallet and nothing else.

Many times people use the same password for every account, because it’s the best way to remember it. However, this makes them an easy target for cyber-criminals.

Moreover, to ensure your safety try to use two-factor authentication. This method requires a one-time password for every transaction you make, which will be sent to your mobile phone.

The only way for the transaction to be completed is when you supply the password. However, keep in mind that you should never actually use your mobile phone to access your Bitcoin wallet. This device is extremely vulnerable to hacker attacks.

Using a VPN for Enhanced Security

Other than everything that was mentioned above, using a Virtual Private Network is probably one of the best ways to keep your Bitcoin Wallet Protected. There are several reasons why a VPN is good for your Bitcoin wallet, and one of them is because this technology allows you to securely browse the Internet by encrypting all your traffic.

It means that everything you do passes through a secure tunnel, which is the best way to keep your sensitive data away from prying eyes such as hackers, snoopers, or your ISP. The encryption will protect your passwords and session cookies from falling into the wrong hands.

Additionally, a VPN is the best way of hiding your real IP address, and this is much needed when it comes to Bitcoin transactions. If your IP address is revealed during this activity, your location can be easily discovered, and this can expose your real identity.

However, if you are operating behind a different IP address, you’ll remain completely anonymous. That, of course, is true if your VPN is not leaking your IP address.

With this being said, you should look out for bad VPN service providers. Not all of them offer the same features or levels of protection. When it comes to using a Virtual Private Network for securing your Bitcoin wallet, the best way to go about it is by choosing one with many servers that can grant you with different IP addresses, making you even more anonymous.

Besides, make sure the VPN offers military-grade encryption or the 256-bit one, combined with an OpenVPN protocol. Additionally, a VPN that offers leak protection is more trustworthy and can further guarantee your security by not letting any sensitive information “escape”.

Overall, you need to put your focus on the security features of the provider and choose one that offers nothing less than what was mentioned above, even if this means that you have to pay a slightly larger price. At the end of the day, the benefit of owning a secure VPN is much bigger than the price you will actually pay for one.