Making Sense Out Of Technology

Bitcoin Software Tips For Secure Funds Storage

If you've recently decided to invest in bitcoins, it's important that you're prepared to store them properly. Bitcoin software, also called a bitcoin wallet, can be found in both online and offline varieties. Here are a few tips to help you make the most of your bitcoin software to store your investment securely.

Always Backup Your Wallet

Many bitcoin software applications store bitcoin keys privately, keeping the keys hidden. If you only backup the visible keys, you may lose the funds associated with those hidden keys. That's why it's important that you do a comprehensive backup of your bitcoin wallet on a regular basis. Back it up daily to ensure that your funds are protected.

Use Encryption To Protect Your Funds

Your wallet and your backup should both be encrypted to help guard against any potential theft. Remember that if you store your backup online, that puts the backup, as well as your online wallet, at risk of theft. Keeping both encrypted with a strong, secure password will help to guard against that, because a would-be thief won't be able to access the keys if they can't get past the encryption.

When you encrypt your online wallet, you should also make sure that it requires a password for any funds withdrawal. Make the withdrawal password different from the access password, just in case someone does manage to breach the initial encryption.

Opt For Multiple Storage Locations

Keeping all of your eggs in one basket, or all of your bitcoins in one storage location, puts you at greater risk of losing all of them in the event of a breach. Instead, opt for storing your bitcoins in multiple secure places. At the same time, you should also have multiple copies of your backup stored in several different places.

When you're determining where you'll store all of your bitcoins, you should think about separating your bitcoin savings from your everyday spending funds. When you do this, it's a good idea to choose an offline wallet for your savings. Offline wallets are the most secure options because they have to be accessed locally. They aren't accessible by network, which significantly reduces your risk of theft.

These are a few tips to help you secure your bitcoins as you get started with investment. For more tips and guidance, talk with a bitcoin software provider. They can help you determine the best storage options for your needs.