The surge followed after the 2017 peak in the price of bitcoin has led to various people investing in this digital currency. The time between 2019 and 2020 was when bitcoin reached its highest value and surpassed all the previous records. However, with more and more people investing in this digital currency, the number of scammers and hacking events has also increased.
Many hackers have figured out ingenious ways to steal your earned funds. New investors that are not aware of the security alerts often get the victim of such thefts. Some of these events were so blatant that they rerouted tokens meant for one wallet for another one of their own in open sight. In such cases, the hands of the victims remain tied, and they just watch their tokens being stolen away from their own wallets.
What Is A Bitcoin Wallet?
Bitcoin is stored in a wallet, just like physical money. However, this wallet is available digitally and can be operated through an electronic device, like a mobile phone, computer, or another handheld device. Alternately, it can also be secured via a printed private key or address on paper. This means that a Bitcoin wallet can be both web-based and hardware-based, but you need to find out what is easily accessible in your own region.
The safety of a Bitcoin wallet is the responsibility of its owner. If the user chooses the right type of wallet and takes all precautionary measures, the risk of theft is reduced. A digital currency wallet is dependent upon a set of keys for access. Without it, even the owner of the wallet can not obtain any information.
This key, if stolen or forgotten, can create problems for the wallet holder. Aside from an exposed private key, computer malfunctions or crashing hard drives can also lead to hacking. Additionally, if you physically lose the device where your wallet was present, you may never be able to attain access to it again.
One way to secure your bitcoin is by keeping them in digital wallets like Payeer, PayPal, Perfect Money and AdvCash. If you want to buy AdvCash in Pakistan, head over to PKR2Dollar.
Types Of Wallets:
- Hot Wallet:
A hot wallet is the name given to an online wallet that runs on internet-connected devices. When your bitcoin wallet resides on a phone, tablet or computer, it becomes exposed to certain vulnerabilities. They are accessed through a private key generation mechanism, which compromises the security of your crypto coins.
Even though a hot wallet provides easy access and faster transactions, it also requires you to use maximum security to prevent theft. Your funds from a hot wallet can be stolen in a number of ways, and that is why it is best to spare them for small amounts only.
It is recommended to use your electronic device for a checking account instead of a savings account. This will protect you from losing a bulk amount of savings due to security insufficiencies.
- Cold Wallets:
A cold wallet does not need an internet-connected device for access, and that is why it eliminates the risk of your amount being compromised. They are also called hardware or offline wallets, as they store the private key and address of the user on something that does not have internet connectivity. Additionally, the wallet is accompanied by software that works in parallel, so the user does not have to risk their private key in order to have a look at their portfolio.
Therefore, a paper wallet is the most secure method for Bitcoin storage. You can generate a cold wallet from certain websites and then print your public and private keys onto a piece of paper. This means that you can only access cryptocurrencies if you have that paper in hand. Laminate it and store it in a bank or in your own house; wherever seems more secure to you.
Security Precautions To Take:
- Keep Backups:
It is a good practice to back up your crypto wallet frequently. This way, if there is a computer failure, you may be able to recover your digital currency with the help of backup history. Make a backup of all your wallet.dat files and save it in different places, like a USB, CD or hard drive to ensure maximum safety. Don’t forget to set up a highly secure password on the backup as well.
- Regular Software Updates:
If your software is not up-to-date, your wallet becomes an easy target for hackers. Always install the latest version of the software as they are accompanied by stronger security systems. Updated software that incorporates the latest security fixes and the best protocol will be able to secure your bitcoins a lot better than non-updated wallet software.
- Multi-Signature:
Multi-signature means getting approval from more than one person before a transaction can take place. This way, you eliminate the possibility of theft, as a single server will not be able to finish a transaction.
To sum it up, Bitcoin is a valuable asset in the 21st century that should be secured in the best way possible. If you want to buy bitcoin or are wondering how to purchase AdvCash in Pakistan, visit PKR2Dollar. We are a huge exchange network where you can buy cryptocurrency, exchange currency and earn commission on each exchange.