Protecting Your Bitcoin Investment From Computer Hackers

With the rising popularity of the digital cryptocurrency Bitcoin, it is extremely important for all Bitcoin users to learn all the information that they need in order to protect their digital wallet and keep their investment safe. With bitcoins being 100% percent digital and having no tangible or numismatic value such as gold or silver, never before has it been so easy for computer hackers to compromise your account since it is all stored within a software program called a Bitcoin digital wallet. By following these important safety tips you can be sure that you are having the safest bitcoin experience possible.

The Digital Wallet Is Unencrypted By Default

The very first thing that you should do in order to ensure your financial security with the Bitcoin digital currency is to familiarize yourself with the digital wallet software that you are using, as well as all the different settings of the software. The classic Bitcoin digital wallet software is configured to process transfers in an unencrypted manner according to its default settings, and this can be a security threat that can put the money in your digital wallet at risk. You should modify these settings so that all transactions are automatically encrypted, which will mean that you need to select a secret passcode and then enter that private code every time you make a transaction.

Keeping Your Private Passcode Secure

The Bitcoin algorithm depends on a public encryption key as well as a private passcode that you designate for your specific digital wallet in order to transfer money. It is very important that you always know your password and that it is not easy for anyone else to guess. Without the private password nobody will be able to access the Bitcoins in your digital wallet, including yourself if you end up losing your password, and with the private password anybody can send your bitcoins to any other bitcoin address.

Watch Out For Spyware On Your Computer

One of the easiest ways for computer hackers to steal your sensitive data is to infect your computer with a malicious piece of software called a keylogger, which will record the keystrokes on your keyboard including your password. Remember that with the private passcode in hand any other person will be able to transfer bitcoins out of your digital wallet to any other Bitcoin address, and this transaction will be irreversible. Pay attention to these important tips if you are just getting started using the digital currency Bitcoin, and you should be able to guarantee the safety of your account.

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