How To Safeguard Your Bitcoin

Last Updated March 9th 2023

10 Min Read

Bitcoin is attractive to scammers and hackers who intend to steal your Bitcoin. This simple guide explains how you can keep your Bitcoin safe and secure.

Cryptocurrency is increasingly becoming accepted as a form of payment and as a digital asset. The more popular cryptocurrencies, like Bitcoin, have millions of users. Today, many businesses accept Bitcoin payments across the world. The trend will likely continue in the foreseeable future, meaning that more people and companies will have and use Bitcoin at some point.

If you are a crypto enthusiast or investor, you must have heard about cases of hackers and scammers stealing cryptocurrencies. This threat is real for Bitcoin investors, and cases of theft are not news. Hackers can steal your Bitcoin from your Bitcoin wallet or a crypto exchange if they get access to them.

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Why Should the Safety and Security of Your Bitcoin Matter?

Before identifying ways to keep Bitcoin safe and secure, one needs to understand its reasons and rationale. Exploring and applying these methods would only be helpful when they serve a purpose. Primarily, the safety and security of Bitcoin matter because of the real risk of losing it to hackers and swindlers.

According to some crypto analysts, hackers stole over $3.8 billion in crypto in 2022, which marked an increase from the $3.3 billion that hackers stole the previous year. These figures show that crypto theft is becoming more common and a reality that Bitcoin investors must recognize and appreciate. Any Bitcoin investor can disregard this reality at their peril.

Additionally, the value of Bitcoin has grown significantly. Currently, the value of Bitcoin is around $24,500, but it's still volatile despite growing over the lifetime of Bitcoin. The cryptocurrency's value could also increase further in the future. That means losing Bitcoin to hackers or swindlers can be a big blow in lost value. Bitcoin investors should be concerned about the safety and security of their Bitcoin because it could help prevent such a significant loss of value.

Ways to Keep Your Bitcoin Safe and Secure

There are several ways to keep your Bitcoin safe and secure. This guide highlights two proven methods that any Bitcoin investor can use. Crypto security experts recommend applying all techniques simultaneously.

Keep Your Bitcoin in Your Bitcoin Wallet

Your Bitcoin wallet is where you keep your Bitcoin. It differs from the crypto exchange you use for trading and investment. Crypto wallets are private, meaning you do not share with others. You have greater control of your Bitcoin wallet by accessing and transferring it to and from it. You are the only one who has access to your Bitcoin wallet unless you share your password and private key with someone else.

Crypto exchanges are simply marketplaces for all crypto investors. You will share a crypto exchange with many other crypto investors. Moreover, the crypto exchange is not your private property. With vast sums of Bitcoin in crypto exchanges, they are prime targets for hackers and swindlers. If hackers successfully hack into a crypto exchange, all investors will likely lose their Bitcoin. You can avoid this risk by storing your Bitcoin in your wallet instead of on the crypto exchange.

Preserve Your Private Key Offline

You can also keep Bitcoin safe and secure by writing down your private key on paper and keeping it in a secure place. Hackers can easily access your Bitcoin wallet and steal Bitcoin if they access your private key. It is more difficult for hackers to access this private key when you keep it offline than when you save it electronically. Hackers only need to access your electronic device where you have saved your private key to access it.

Conclusion

The best way to safeguard your Bitcoin is to be more vigilant. Always try to be ahead of hackers and swindlers by sealing all the loopholes they can use to access and steal your Bitcoin.