While the digital currency Bitcoin is one of the most exciting new developments in the field of personal finance and many individuals around the world are accepting it as a legitimate form of payment, it is not as secure as established major currencies such as the dollar, pound, and euro. Because Bitcoin is currently decentralized and unregulated, it can be possible to lose your Bitcoins without any possible way to recover them if your digital Bitcoin wallet gets hacked or compromised. By following these three tips about digital wallet safety, you can be sure that you are getting the most out of your Bitcoin experience and that your investment is secure.
Protect Your Secure Password
One of the features that will come with all digital wallet software for holding Bitcoins is that you will be able to encrypt your transactions by choosing a secure password and then entering this password every time you send or receive Bitcoins. As long as you keep your password safe then nobody will be able to access your Bitcoin funds but you, thereby making your digital wallet secure from anyone gaining unauthorized access. You should make sure that your secure password is hard to guess and has a combination of letters and numbers so that it cannot be randomly guessed.
Do Not Publish Your Bitcoin Address Online
Publishing your Bitcoin address at any publicly accessible location on the internet is a very bad idea, since your Bitcoin address is very similar in nature to your email address and anyone who has it can try to take money from your digital wallet. Unless you want to publicly accept donations into your Bitcoin account then you should always keep your Bitcoin address private, and you should also use your digital wallet software to issue a new address on a periodic basis.
Check Your Computer For Spyware
If you are going to be running digital wallet software on your computer then you should also be running software that will check for viruses and spyware so that it can be eliminated. You should be absolutely sure that your computer with your digital wallet is spyware free, because it can be possible for certain software programs to steal the sensitive data that you enter into your computer including your secure digital wallet password. While Bitcoin is still in its early adoption phase of technology, many people are diversifying into Bitcoins and it is absolutely essential that you know how to protect your digital wallet in order to keep your Bitcoin investment safe.