Bitcoin is one of the oldest and most widely used peer-to-peer payment systems; the amount of its market capitalization today exceeds that of other cryptocurrencies. Due to its immense popularity, many companies and some individuals have already started to integrate it as a payment system.
But there is still a threat to the security of digital wallets. Last year, ransomware like WannaCry attacked several computer systems around the world through Microsoft Windows, demanding the payment of ransoms in Bitcoin. Even though Bitcoin transactions rely on blockchain, this blockchain-based technology that makes it difficult to hack cryptocurrency information, the security of your Bitcoin wallet should not be taken lightly.
But first let's clarify what is meant by "Bitcoin wallet". A Best Crypto Wallets is a digital wallet where Bitcoins are stored. Obviously, there is no question of storing your Bitcoins anywhere since they contain a private key or secret number for each Bitcoin address registered in the wallet. There are several types of Bitcoin wallets: desktop wallet, mobile wallet, online (or web) wallet, hardware or paper wallet. But before discussing the different methods and techniques that exist to secure Bitcoin wallets, it seems important to me to discuss the main security issues and threats.
Hardware wallet or “offline” storage mode
One of the first steps you can take to secure your Bitcoin wallet is to opt for cold storage, which is like storing Bitcoin values in a hardware wallet. This is called the "offline" method because it does not require you to connect to the Internet. It is, moreover, less prone to piracy.
In short: the method is similar to a form of physical storage similar to what we have with USB keys. However, it is recommended not to cold store large amounts of cryptocurrency, the best is to divide the Bitcoins into two "piles". On the one hand, a small amount that will be kept online for transactions, and on the other, the balance that can be stored in the “hardware” wallet.
Among the cold storage portfolios include Trezor or Ledger Nano S . However, you will have to pay up to 100 USD for their implementation and obtaining a PIN code (the password used to access the contents of the wallet). You will also get a “ recovery seed” to use in case of forgetting the PIN code or of malfunction. But be careful not to lose both your PIN code and your recovery seed: you will be in serious trouble.
Create one or more backups of your portfolio
To be safe in the event of loss of your wallet or your data, experts recommend creating backups. You should then back up your entire Bitcoin wallet to protect it from computer failures and human error. The backup would encompass the cold stored Bitcoins and the small amount of Bitcoins you keep for your transactions. In the event of theft, you can recover your wallet if it is encrypted.
Encrypt your Bitcoin wallet
To add an extra layer of security, you can encrypt your Bitcoin wallet. The operation requires the use of a passphrase that will allow you to lock your crypto-pot. This will make it much more difficult for hackers to get hold of the contents of your wallet… unless they know your passphrase.
