The cryptocurrency industry has just only gained wider attention in the past few years, it is still vulnerable to malicious hacks. Any individual or even the entire digital currency exchange is at risk of losing a significant amount of digital currency because of attacks. Hackers just disappear in the dark without leaving traces, taking a huge amount of money that cannot be recovered.
Because of this possibility, many inventors are skeptical about investing in Bitcoin. But investors who are prepared and vigilant can take precautionary measures to protect their digital assets. Whether you are buying bitcoins from an exchange like Paychain or through a Bitcoin ATM, here’s how you can protect your assets:
Secure a Wallet
If you prefer to buy up Bitcoin on an exchange, make sure to secure a wallet. Keep in mind that even if exchanges take their own safety precautions to prevent thefts, they are still immune to hacks. Of the wallets you can choose from, the physical wallets might be the best option. These wallets look like USB devices where you store your coins securely through private keys. These keys are password-like codes that let you decrypt the wallet and access your coins. But, it’s important not to lose your key since; otherwise, you will never recover the Bitcoin in your wallet. Other wallets you can choose include paper wallets and desktop wallets. Paper wallets are generated by web platforms that make Bitcoin addresses and private keys users can print out. Meanwhile, desktop wallets are not directly connected to the internet. But, there are viruses designed to retrieve information for this type of wallets.
Operate on Bitcoin Exchanges
The majority of Bitcoin transactions are carried out through a Bitcoin exchange. Typically, exchanges are accessible through a web browser or application. They require you to purchase and sell using a fiat currency or a different cryptocurrency. Many cryptocurrency experts warn against storing your Bitcoin on an exchange because of their vulnerability to hacking.
While a lot of experienced cryptocurrency investors move their Bitcoin out of the exchange platform after completing the transaction, the process usually comes with a fee. Because of this, investors need to pick carefully the exchange to use. Often, Bitcoin are available on a variety of different exchanges that vary in terms of safety and security. To make sure an investor doesn’t end up adding unnecessary risk into the transaction by operating on an unsafe exchange, they must do their due diligence.