Finally, Bitcoin is having its day in the sun. While the cryptocurrency has been breaking records left and right, the crypto space has also become a haven for scammers. In fact, fueled by the lack of regulations and the fact that many investors are new to Bitcoin, scams are running rampant in crypto markets, with consumers reportedly losing up to $82 million due to crypto scams in 2020.
With Bitcoin’s value jumping nearly 450% over the past few months, it pays for investors to take the necessary steps to ensure the safety of their Bitcoin investments. The good news is, there are ways in which investors can safeguard their crypto investments and keep themselves safe from fraud and scammers.
Keeping that in mind, the following are some of the tried and tested methods on how new and experienced investors can keep their Bitcoin investments secure.
Hardware Wallets
One of your safest bets when it comes to keeping your Bitcoin safe is by using hardware wallets. Unlike the wallets that are used online, hardware wallets are physical wallets that are used to keep your Bitcoin safe using private keys that only you have. These hardware wallets work as physical security vaults, which have been specifically designed to protect cryptocurrencies from possible attacks by cybercriminals. Since the hardware wallet is offline, it minimizes the possibility of hackers or scammers gaining access to your Bitcoin investment.
Software Wallets
Software wallets are your next best bet in keeping your Bitcoin investment safe. However, you need to ensure that you’re choosing the right wallet for your needs. Some of the best options available today are Exodus, Electrum, and many others, so you will have to shop around to find the best option. Also, since not all software wallets are created equal, it pays to make sure that the one you choose offers all of the safety features (2FA, etc.) and then some.
Use Encryption
Apart from the security features such as two-way authentication, investors should also encrypt their Bitcoin wallets. This can be done by setting a password that locks the coins whenever someone suspicious tries to access your account. The scammers will need to know the password to decrypt the account first. Multi-sig wallets are growing in popularity because of the high level of security they provide by requiring digital signatures from multiple authorized users in order to access a wallet.
Regular Backups
The importance of backing up your entire wallet on a regular basis cannot be stressed enough. While some wallet provides do offer this service, others don’t, so it’s best to shop around to find those who do offer a backup feature. This will enable you to retrieve funds and data when needed. You can also use CDs, USBs, and hard drives as backup devices as well.
Ending Note
For new investors investing in Bitcoin or any other cryptocurrency for that matter could feel like a challenge, especially with all the reports of fraud and scammers. However, by using reputable crypto trading platforms such as bitcoinx along with secure wallets, it is possible for you to increase your profits without any risk of getting scammed.
One of the best advantages of using a platform such as Bitcoin Eras is that it has been designed specially to make the whole Bitcoin trading process easier for new and experienced Bitcoin investors. Even if you are new to Bitcoin investing, you can take advantage of the many resources that are available on the Bitcoin trading platform and data that’s easily available in real-time to make better trading decisions.