Bitcoin Security Tips For Beginners 2024 – An Easy In-Depth Guide

You have encountered blockchain technology if you are just joining the Bitcoin world. A deep dive into this technology demonstrates the Bitcoin security tips, making the network trustworthy, secure, and immutable.

However, do you know that the greatest weakness of Bitcoin security is “the people?” This does not mean that people can compromise the Bitcoin network. The concept behind blockchain technology makes it impossible to hack the Bitcoin network.

Since launching in 2009, the Bitcoin network has never been hacked. The same cannot be said for Bitcoin users, as thousands have lost Bitcoin to different hacks, scams, and misplaced wallets.

For instance, in 2014, Mt. Gox, a cryptocurrency exchange, lost more than 800,000 Bitcoins, worth a staggering $50 billion at BTC’s price at the time of publication, to a hacking event. This case shows that the loss of Bitcoin is linked to people and large crypto businesses.

Another case of lost Bitcoin happened in 2013 when James Howells, a UK resident, accidentally dumped his hard drive containing 7,500 Bitcoins in his garbage bin. This stash is worth a whopping $400 million at the current prices.

If you look at these cases, it is easy to see why Bitcoin security tips are vital to every beginner who wants to get started on Bitcoin.

Satoshi Nakamoto, the pseudonymous creator of Bitcoin, once said that “lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone.” However, this does not mean that everyone has a few hundreds, thousands, or millions that they are willing to lose.

In this article, we will look at how to secure Bitcoin from a beginner’s point of view. We will dive deep into this digital asset to understand how you can ensure that our small or large stash of Bitcoin remains safe in your crypto wallet.

How to Store Your Bitcoin Securely

Pick The Right Crypto Wallet

The first tip for Bitcoin security is to pick the right crypto wallet. After you buy Bitcoin, send it to a secure wallet. There are two main types of crypto wallets: software and hardware.

Cryptocurrency exchanges often offer software wallets. After you buy your Bitcoin from an exchange, you can leave it in your exchange account, which will be in a hot wallet.

Hot wallets have their advantage. If you are a day trader, you will have an easy time moving your Bitcoin through a crypto exchange. However, you should note that your Bitcoin is only as secure as the exchange.

In November 2022, FTX, once one of the largest cryptocurrency exchanges, filed for bankruptcy. This exchange went under with Bitcoin, which people held in their accounts. Its collapse triggered a debate on the need for self-custody.

To achieve self-custody, you should store your Bitcoin in a hardware wallet. Hardware wallets come in physical form, mainly USB drives. They will store your Bitcoin in cold storage; only you can access it.

The most popular hardware crypto wallets are Ledger and Trezor. Before picking a hardware wallet, ensure it is well-known and that other users attest to its security and reliability. Hardware wallets are safe from hacking attacks unless you fall victim to phishing attacks.

Secure Your Wallet

Your Bitcoin is only as secure as your wallet. The greatest security threat against your Bitcoin is your wallet or exchange, not the blockchain. Therefore, you should always take steps to secure your Bitcoin.

The first rule of thumb is always using a crypto wallet offered by a reputable company with a proven track record. As mentioned, the top hardware wallets are Ledger and Trezor. There are many more in the market, but it is crucial to conduct due diligence before settling on one.

Once you have your crypto wallet, the next thing to do is to improve its security by adopting two-factor authentication (2FA). Many people avoid going the 2FA way because of the time-intensive process you will go through to access your crypto. However, this process has helped people keep their Bitcoin safe.

When you have 2FA enabled in your account, it will mandate that you verify your identity after entering your password. It does this by sending a verification code to your device. This process makes it difficult for malicious actors to access your wallet and steal your Bitcoin.

As you ensure that hackers do not access your crypto, you should also ensure that you do not lock yourself out of your wallet. If you set a strong password, it is essential to jot it down in a secure place for remembrance.

If you have a hardware wallet, you must store it in a safe place. You will never access your coins if you lose the USB drive containing your Bitcoin. Some people store crypto wallets in their bank’s safety deposit box.

Do Not Fall For Phishing Scams

In February 2024, Ledger sent out an alert to its users. The wallet provider confirmed that its users were targeted in a phishing campaign. As such, it urged users to refrain from receiving any calls claiming to be from an employee of the company.

So what is a phishing campaign, and how does it threaten Bitcoin security?

A phishing campaign happens when a malicious actor wants to trick you into sharing sensitive information with them, which, in this case, is the key to your Bitcoin wallet. 

In a phishing campaign, a hacker will have already accessed the email addresses and phone numbers of the people owning crypto wallets. However, due to 2FA, a hacker can only do a little with just these details. They will need you to authorize access to your wallet.

A hacker will call you pretending to be an employee of the company. They will claim to help you resolve an issue by sharing your information with them. At times, you might also receive an email containing a malicious link. Once you follow that link and access your wallet on the malicious site, the hackers will steal your Bitcoin. 

Below are some tips that will help you stay safe from phishing scams:

• Be vigilant

The first thing to do is to be vigilant. You should disregard any unsolicited communication claiming to be from your wallet provider. If you receive an email or phone call claiming to assist you with an issue you did not raise, do not interact with it.

• Maintain communication on the wallet provider’s official website

Your wallet provider will likely never send an email or call you. Instead, they will always communicate with you through the support page on their website. If you have any queries, key in your device’s official wallet address URL and raise a ticket with support to resolve your matter.

• Secure your recovery phrase

You should not key in your wallet recovery phrase on just any website. Hackers are always lurking, looking to copy your recovery phrase and steal your assets. Your recovery phrase should be treated with the highest level of security and confidentiality.

• Do not follow links sent via email

Most hackers send malicious links on email to conduct phishing campaigns. These links will lead to malicious websites where the hacker will capture anything you input, including your wallet’s login details.

Secure Your Device

The other safe practice to promote Bitcoin security is securing your device. Whether using a mobile phone or a computer to access your wallet, you should practice safe browsing practices that make it challenging for hackers to infiltrate your device.

This tip is critical when using a hot wallet as a mobile application. Such wallets are always connected to the internet. Therefore, it is elementary for a hacker to gain access to your wallet if you fail to improve the security of your device.

When it comes to securing your mobile device or computer, below are some tips that you should use:

• Refrain from using public WiFi – This is one of the basic skills in protecting your internet safety. Hackers are always looking around public Wi-Fi to steal sensitive data.
• Keep up with device and wallet updates – Device manufacturers constantly send updates to patch security flaws that threat actors may exploit. You should always install these updates when they are released. You should also check if your wallet provider has issued an update that needs serious attention.
• Use two-factor authentication – A two-factor authentication is like a second layer of security. You will require a code sent to you via email or phone whenever you log into your wallet. This code ensures that an unauthorized person will find it hard to log into your wallet.
• Install a password on your device – You should always secure your device by installing a password. A password ensures that if your device is stolen, a malicious actor will not have access to it.
• Do not auto-save your passwords – You should not auto-save passwords when asked to do so by Google Chrome or other tools. Doing so ensures you remain safe in case the password-protecting tools are compromised.
• Install an anti-virus program – You should install an anti-virus program on your device to keep malicious actors at bay.

Taking these steps will boost Bitcoin security and eliminate the possibility of hackers using your device as an access point to gain unauthorized entry.

Double-Check Recipient Addresses

One of the primary mistakes people make when it comes to Bitcoin security is failing to provide the correct email address of the person receiving it. If you send your Bitcoin to the wrong wallet address, chances of recovery are slim to none.

Recently, a Bitcoin trader lost $70M worth of cryptocurrency after sending the assets to the wrong address. The trader lost the holdings in an attack known as an address attack.

This attack happens when a hacker creates an address similar to the one you intend to send your assets to. The hacker will then send a small amount to you using this address, allowing you to make an error.

You must always double-check the wallet address you plan to use to send payment transactions. Sending money to the wrong address might cause you immense losses.

In Summary – Bitcoin Security Tips For Beginners

Bitcoin’s popularity continues to soar by the day, and many new entrants in the space have limited knowledge of improving their assets’ security.

The cryptocurrency industry is filled with stories of people who have lost millions of dollars worth of cryptocurrencies to hacking attacks. This often forms the basis of the myth that Bitcoin is a scam. However, contrary to this belief, Bitcoin is not a scam; scammers and hackers are always looking to prey on people in this space.

If you want to improve Bitcoin security and keep your crypto assets safe from harm, you should always pay attention to the security of your wallet. Your crypto wallet should be protected like you would protect your physical wallet. 

FAQs