Bitcoin is a virtual currency, and one of the biggest confusions about it among people is how to store it. Bitcoins are stored in digital lockers, also termed bitcoin wallets. There are different types of bitcoin wallets, and you can choose any of them to store private keys and make bitcoin transactions. Despite being quite safe, there are some chances for bitcoins to be stolen from wallets. So, there are some tips mentioned below that will help you enhance your wallets and bitcoins’ security and bitcoins to a great extent.
Don’t allow employees access the wallets
With the increasing popularity of bitcoins, several companies and businesses have started making bitcoin transactions as it allows them to make global payments without paying hefty transaction charges. If you use bitcoins in your business, you must ensure that your employees don’t get access to the bitcoin wallet. It is vital as if any employee gains access to the wallet, he can easily transfer the bitcoins to his wallet, and you would not be able to catch him as bitcoin transactions are anonymous.
The anonymous nature of bitcoin transactions will make it impossible to find out the employee who made the transaction. So, you must take all the precautions and limit employee access to the wallets. If you trade bitcoins, you must check sguru.org out .If your company requires employees to access the bitcoin wallet, you can use sub wallet and provide a separate wallet to each employee. It will increase safety and minimize the risk of theft.
Keep hot and cold wallets separate
There are mainly two types of bitcoin wallets; hot wallets and cold wallets. If the wallet is stored on a system that is connected to the internet, it is known as a hot wallet, and if a wallet is offline, it is termed as cold wallets. If you make bitcoin business transactions, the best way to do it is by keeping separate hot and cold wallets. Hot wallets are highly prone to cyber thefts, and cold wallets are immensely secure as they are offline.
You cannot use cold wallets to make transactions as you cannot make a bitcoin transaction without an internet connection. So, you can store the bulk of bitcoins in cold wallets so that they are safe, and you can keep a separate hot wallet in which you can deposit bitcoins from the cold wallet according to your needs and requirements. It will offer you great accessibility to the bitcoins, and you will not have to worry about online threats as most of your bitcoins will be on the cold wallet.
Offline storage for private keys
Bitcoin wallets are like digital lockers, which you can only access with a key known as a private key. The private key is a long combination of numbers and alphabets, and you need to enter it before signing into your bitcoin wallet. If anyone gets access to your private keys, he can easily open your bitcoin wallet and use the bitcoin stored in it. So, if you want to maintain proper security, you must store the private keys safely. If you store them online, they will on risk as hackers can easily access them and steal your bitcoins.
So, the best way to store private keys is to store them offline on a separate computer. You must ensure that the computer on which you are storing the keys is not connected to the internet. To make a transaction, you can initiate it on the online computer and bring it to the offline one to sign in with the private keys. Then you can take it back to the online computer and make the transaction.
Create some backups
Bitcoin is not managed by any authority or institution, which is the primary reason that lost bitcoin cannot be recovered. So, you must no take any risk and create multiple backups for the private keys, as even if you lose them or the system crashes, you will be able to use the backup to gain access to the wallet. You must make come copies of the backup and store them in different locations. It is important as even if the thief finds the backup of the private, there will be a few more to safeguard your wallet and bitcoins from the hackers.