Securing your bitcoin wallet is an integral part of your bitcoin mining business. Otherwise, you risk theft of your bitcoin mining income. Your bitcoin is at risk of theft just like your physical wallet in day to day life. In addition, your bitcoin wallet is at risk of being hacked into since it is accessible via the internet. The in-built convenience features of the bitcoin wallet are also pre-disposing to security breaches by hackers. Therefore, you ought to implement security measures to seal these security loopholes which might put your digital currency at risk of theft. Nevertheless, the Bitcoin system has put in place world-class levels of security to safeguard your bitcoin wallet. However, it is wholly your sole responsibility to adopt and implement good security practices to protect your digital wallet.
Take caution before choosing any online payment and money exchange service to handle your money. It is advisable to avoid online money exchange services at all costs since they are known to have suffered from security attacks. In fact, they are not attack-proof and lack the security of a bank.
Keeping your account balance at a minimum is an effective security measure that you can implement to avoid the risk of losing all your money in case your wallet is compromised. The same way you would not have all your money in a single vault or bank account, do not have all your digital currency in your single wallet.
Backing up your wallet is the smartest solution to ensuring its security. Storing a backup of your wallet in a different secure location is the best insurance policy you can ever have. It is an effective protection from computer virus attacks and theft. Make regular backups of your wallet and use as many locations as you probably can.
There exist high levels of encryption options that you can effectively use to encrypt your bitcoin wallet and make hackers blind to it with encryption algorithms. Putting encryption measures in place for your wallet sets a password for everyone attempting to access your wallet hence protection against thieves attempting to withdraw from your wallet.
Ensure your computer and smartphone software is up to date as well as your bitcoin wallet software since outdated software has security vulnerabilities that can give easy access hackers.
The bitcoin wallet provides a multi-signature that requires multi-authentication to be implemented from disparate independent approvals before accessing your wallet.
In addition to your online wallet download an offline copy of the bitcoin wallet for cold storage which is inaccessible online. Secure it with a strong password comprising of letters, numbers and special characters. A password formed from such a combination is hard to guess or hack.