How to secure your bitcoin wallet: technologies on the guard of your interests

How to secure your bitcoin wallet: technologies on the guard of your interests

Everyone who has certain accumulations, for example, bitcoins, sets a paramount task to find an answer how to secure your bitcoin wallet.

Alternative electronic money formed into a universally recognized institution of safe storage of savings. It's no a secret that Bitcoins do not have a single center regulating turnover. That is why every user should take about the security of his bitcoins by himself.

Table of content

  • Modern ways of protecting Bitcoin wallet
  • How to ensure safety when working with Bitcoin-wallet
  • Alternative Wallets
  • Providing security for the operating system

As a consequence, each user is personally responsible for the money in his wallet and for protecting the storage from outside interference. And here you should be careful because any experienced hacker can easily crack a PC, get the necessary information and steal money.

To protect funds, it is worth taking a number of steps:

- Provide protection for a PC and work environment.
- Securely protect the wallet file and existing backups. In the official version, this file is called wallet.dat.
- Exclude access to information from outside parties or organizations. Particular attention should be paid to the software installed on the computer. It is necessary to avoid the installation of suspicious software that can steal information from a PC.
- Use only two-factor authentication, as well as a number of other means of protecting personal information.
- Create complex passwords that will have the appropriate length and eliminate the risks of hacking.
- Do not use suspicious applications.

Modern ways of protecting Bitcoin wallet

Recently, multi-signature technology is gaining in popularity. The main task is to ensure the security of transactions and the safety of funds in the wallet. The bottom line is that each operation is carried out under the condition of subscription. Each user of cryptocurrency can create a group of personal (private) keys, each of which will be stored in a certain place - in the bank store, on the memory card or on a third-party resource. One of the keys can be transferred to a trusted person.

Multi-signature provides:

- That transactions can be made only with the consent of several people who own the key, with the signature of every involved person
- Safe storage of money. Even in a situation where an unauthorized person has got one of the keys, it is impossible to get Bitcoins from the wallet;
- Safeguarding of payment, it provides the so-called guarantor (the arbitrator of the transaction);
- Increase of the level of security when using the storage for personal savings.

Another security system is two-factor authentication (2FA). This technology is used in the banking sector, for example, in the case of providing online services to institutional clients. To access the money, you need to enter the password on the PC separately, receive a special code on the phone and enter it into a special box. The code can also be sent via SMS.

How to ensure safety when working with Bitcoin-wallet

In the process of using cryptocurrency, special attention should be paid to the file wallet.dat, which was mentioned above. In order to avoid losing money, you need to backup your files from time to time and store them outside your computer. The best option is to purchase a special flash drive and use it to store the most important data.

Bitcoin wallet-programs provide the option of file encryption. However, in new versions of programs it can be switched on automatically. Thanks to this option, an attacker, accessing files, does not have the ability to steal money due to the condition of mandatory decryption of data. It is easy to find this option . In the official wallet you find this function, selecting the settings section, and then - the wallet encryption.

One of the proofs of possession of funds in the wallet is the signature of messages - an option that is implemented in every performed operation. But this does not mean that you need to fully trust the defense. If there is a suspicion that someone from unauthorized persons has access to the wallet, do not stand idly by. No matter how complicated the password is, it can be hacked. So, in case of theft (loss) of a smartphone or laptop it is important to get access to the money through a backup and transfer all funds to another address.

Alternative Wallets

How to secure your bitcoin wallet with alternative types of storage? Their peculiarity is in the possibility of creating an additional phrase-code used for the subsequent restoration. To implement the plan, you need to have a connection to the server. In order not to lose useful information, the phrase should be written on a separate sheet. It is dangerous to keep it on your PC because of the risk of theft or loss. Also you can provide a PIN-code as an additional protection.

The program Armory should be noted too, which is installed with the Bitcoin Core wallet. The main task is to improve the overall security of cryptocurrency using. To ensure the operation of Armory, you need a working installation and two conditions - the presence of a USB drive, and at least 512 MB of RAM. It should be noted that the second PC with a backup copy of the wallet and personal keys should not be connected to the network. Such foresight will allow you to protect yourself from the attacker even if you lose your personal computer.

When using a mobile version of the cryptocurrency wallet, you should make sure that you have a cipher and a strong password. It is better to save backup keys to an external carrier so that in case of loss of a mobile phone, the password protects money on the wallet.

Remember that the security of the cryptocurrency in the electronic wallet and the reliability of passwords are interrelated closely. To minimize the risk of hacking, it is worthwhile to use different passwords and try to make them as complex as possible. The best way is when the password has special characters, numbers and uppercase letters. In this case, you need to store the passwords not on the working computer, but on a different device (better portable media).

Providing security for the operating system

When using Windows, you should make sure that you follow the minimum security standards for working with your wallet. So it is worth considering the following rules:

  1. Try not to use outdated versions of Windows operating system, Internet Explorer (up to version 10), or Outlook Express mailbox. The reason is that during the use of this software, a lot of virus programs were written for it, and official support has long ceased. To protect yourself against losses, you should use the new software and update it regularly. In addition, do not ignore the installation of antivirus software, which protect your computer reliably from extraneous penetration.
  2. Use the firewall that is available in the Windows database (you can use a third-party application). Automatic upload of files from remote devices should be deactivated.
  3. Use only accounts with limited capabilities (do not work with Administrator access). Do not disable the UAC system that controls accounts. Go to the PC with the access of administrator only in the event that you need to make changes to the system settings, to remove or install the program. After completing the scheduled actions, it is worth logging out of the administrator's account and log in under the usual account. This foresight is an additional chance to protect the PC in case of a virus or Trojan program.
  4. Do not open unfamiliar files. This includes information that comes in the mail. Also, do not go to third-party sites on suspicious links. At the same time, remember that the danger can carry a file with all extensions (not just .exe).
  5. If the work is done on the local network, the administrator password window should not be left blank. It is better to leave the administrator account in a locked state and immediately put a lock on the guest group.
  6. Access to the Internet must be received through secure channels

The described security rules are typical not only for the Windows operating system but also for more reliable MacOS or Linux. Another requirement is for users of Ubuntu to disable access through a remote network through the root login.

Now you know how to secure your bitcoin wallet. But also, do not forget about messengers, which were based on Bitcoin-technologies. The most popular software is GetGems or Bitmessage.