In the world of cryptocurrency, Bitcoin is king. Its market capitalization surpasses that of its closest rival Ethereum, and it is still majorly the only cryptocurrency asset that gets institutional funds.
As you may well know, a Bitcoin holder needs a crypto exchange account, which is usually charged in FIAT money, for buying or trading Bitcoins.
Using an anti-virus software
It is wise to ensure that you have the best and most trusted anti-virus software installed on your computer system. This is because Windows and Android operating software tend to be exposed to many computer virus programmes, worms, and malwares.
There are many crypto exchanges that accept the deposit of FIAT. Being a Bitcoin holder of course, you need to secure your funds. Professional Bitcoin traders usually keep money on crypto exchanges that are needed for trading cryptocurrencies.
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A good crypto exchange must have an easily identifiable office address, and be properly registered in its area of operation. It should also protect customers’ funds, and be able to compensate its clients, whose accounts get hacked.
Using online Bitcoin Wallet
A good Bitcoin holder should create a digital wallet for Bitcoin, which can only be opened by using a private key. Bitcoin online wallet is basically housed through a phone app, but can also be used in other different formats on your computer system.
A good Bitcoin wallet application heavily protects its user’s information, making it hard to compromise information that is being moved from the app to a payment system, when making transactions.
Using hardware wallets or paper wallet
These are for storing keys. Hesham Rehman, CEO and Co-founder of Bitxoxo, says, “Hardware wallets or paper wallets are wallets where you can hold your private keys. But if wallet keys get stolen or lost, you may lose your Bitcoins. It is good for people who lack technical knowledge.”
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Once such procedure is taken, it becomes very difficult for your coins to be hacked or stolen, because nobody else but you know the private key, However, when you misplace your private keys, there is no way you can access your crypto wallet, meaning the digital coins are forever lost.
Using Two or Multifactor Authentication
Many online Bitcoin wallets support some form of two or multifactor authentication. Activating two-factor authentications connects your Bitcoin account to a mobile phone, usb dongle or mobile app. If a hacker obtains your user identity, they still need that additional factor to access your Bitcoin account.
Ashish Agarwal, Founder of Bitsachs, says, “Investors should check the reputation and the number of download of wallet service providers before making a buying decision from any particular wallet service provider. A reliable wallet service provider base the whole procedure of buying and trading of cryptocurrency on the blockchain, a distributed public ledger.”