TIPS FOR STORING BITCOIN by E. Okorie, 18th of October , 2020
There are various tips for Storing bitcoin in a safe and conducive place for future use. Due to bitcoin volatility nature, it is essential to store bitcoin in a place where it can easily be : Accessible without any third party interference, available for immediate use without restrictions or limit, safe and secure with various level of security.
In other to achieve this, users can follow these tips to secure bitcoin which is okay in a desktop, mobile, web or hardware wallet.
- Store all bitcoin desktop wallets in a segregated virtual environment. This can be achieved by the use of various virtual environments such as oracle VM virtual box or VMware. A virtual machine can be configured such that it would be totally isolated from the main system. This totally eliminates the effect of phishing software or malware attack which may be on a system without the user’s knowledge. Also, some antivirus software sometimes has problems with some desktop wallets and thinks that wallet is a ‘potential treat’ and may quarantine some files. Hence, isolating the wallet solves this problem. .
- Make sure all bitcoin wallets have a backup code. The safety of a bitcoin wallet is necessary. Due to human nature, individuals may forget their pin, password or pass phrase (as the case may be). In other to protect the stored bitcoin from negligence, accidental loss or theft, a backup code should be created. Most wallets have the ability to create a seed recovery phrase. This recovery phrase is used to restore the stored bitcoin in such events. Also two factor authentication can greatly increase the security of the bitcoin wallet. However, the authenticator can be stolen. Thus the QR CODE to generate the code should have a back-up. It is better to be safe than sorry. .
- Ensure the stored bitcoin wallet has verified open source software that can be scrutinized by software developers. All stored bitcoin should be only kept in a wallet that can be reviewed. During a review, bitcoin wallet software developers checked for backdoors where funds can be removed or stolen without the consent of the owner of funds. Warning: Third party should not be given security access to store seed passphrase in another external location. A typical example of this can be found on Coinomi wallet. A user lost money using Coinomi desktop wallet. You can read the full story of the user accusing Coinomi here .
- Always read the terms and conditions of service of any bitcoin wallet. Anything that involves money should be treated with caution and the terms and conditions must be known. In an event of negligence on the software developer part (for instance), you should know who is liable. Well known bitcoin establishment with solid framework will always keep their reputation and give you quality services compared to its competitors. Never assume all bitcoin wallets have the same. If you do, you may lose your bitcoins in the blockchain.
- Never use a bitcoin desktop wallet in a public pc café. .
This tips will definitely help users store bitcoin effectively for future use.