7 Safety Measures to Trade Bitcoin


Can you be sure that your Bitcoin is safe?

When you start trading Bitcoins you must realize that there are not only risks concerning investments, but also risks of thefts and violation of privacy. To tackle these and keep your Bitcoins secure, you can follow these seven safety measures:

Here are the 7 Best Safety Measures to Trade Bitcoin

Keep separate wallets

One of the first things you can do when trading Bitcoins is keeping the wallet you use to spend Bitcoin separate from the one that holds your savings or contains the entire Bitcoin holdings. This way you can stop these holdings from being compromised and abused. You are free to have more than a single Bitcoin wallet or address. If you have plans to increase your bitcoin trade, visit bitcoinlifestyle.io which talks about automated bitcoin trading applications. These bots carry out the trade autonomously saving your manual efforts as well as time.

Never keep savings in web wallets

Another safety tip while trading Bitcoins is not to store savings inside a web wallet as these can be conveniently hacked and emptied. Web wallets may appear to be hassle-free but they must only serve the purpose of a checking or current bank account where you keep money that you are going to use soon. In this way, even if it does get hacked, you do not end up losing a whole lot of money.

Protect individual privacy

You should never share the private keys with anybody else; this private key is like the PIN attached to your bank account that you never divulge.

Control access to corporate wallets

If you run a business and decide to use Bitcoins as a method of payment, you must be extremely cautious about who can access these wallets. Because of its anonymity, it is hard to trace when someone does steal your Bitcoins. So, if you are not careful enough, your employee can gain access to a wallet and transfer your money without you realizing it. When you run a large enterprise having many employees of which some must be given access to a Bitcoin wallet, you should choose a wallet that includes multiple sub-wallets. You can then allocate one sub-wallet to every such employee who can then access the Bitcoins, and you must ensure that each such wallet is protected with encryptions.

Keeping hot wallets and cold wallets separate

Hot wallets are those that are on your devices and these are more prone to network-based attacks. For running Bitcoin-oriented businesses an offline wallet is better as it is safer and not prone to hacking. It is advisable to keep most of your funds in an offline wallet or cold wallet which acts like a safe deposit box.

Use dedicated hardware

The best way to be safe with your Bitcoins is to use dedicated hardware for all Bitcoin transactions. You may use any dedicated USB key when transferring data from an online PC to an offline one. This will help to reduce the chances of viruses and exposure to web hackers.

Store a secure offsite backup

In case your PC is stolen or gets misplaced for some reason or gets destroyed in a fire, you will never have access to your wallets. This means you stand to lose all the Bitcoins stored in the wallets. It is for this reason that experts advise Bitcoin traders to make multiple wallet backups to be kept in multiple secure locations.

Mark Funk
Mark Funk is an experienced information security specialist who works with enterprises to mature and improve their enterprise security programs. Previously, he worked as a security news reporter.