You could never be cautious enough when handling money. But what happens when you are doing the same virtually? Do the rules change or do they remain the same?
Transactions are one of the prioritized advantages of making use of bitcoin. What can you do to make this process even more secure? Here are some tips on securing a bitcoin transaction to avoid any mishaps from our end.
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Implement a two-factor authentication
Most might find putting a two-factor authentication in place to be quite a chore but it definitely beats losing your bitcoins. A two-factor authentication is basically an additional layer of safety to your virtual transactions.
In this process, once the user enters their password or their transaction details, they shall receive a verification code on the device of their choice to confirm their identity. This highly increases the security of the transaction.
Employ an escrow service
Make use of an escrow service when you want to buy or sell something virtually but are unsure of how credible the person on the other end is.
Now while the product is safely on its way to the recipient, the money is secure with the escrow service. Once the service receives a word from the recipient, they will then process the payment. In this way, both parties can enjoy a secure bitcoin transaction.
Avoid web wallets
Although web wallets are easy to use and can be accessed from anywhere, they attract hackers like honey attracts bees. If there is no other way, ensure to immediately transfer from your exchange-based wallet to a more controlled wallet.
Hardware wallets are your safest bet as they have a USB key with unique encryption and an additional onboard computer with an operating system of its own. Some good hardware wallets to use are BitLox, Ledger, and Trezor.
Store your private keys offline
Private keys are a compulsory requirement when it comes to authorizing any bitcoin payments and transactions from the user’s wallet. Due to this, a very simple way of securing the process of the transaction would be to ensure that the private key is secured safely.
Recommendations strongly suggest storing the private keys in a “bitcoin cold storage” which is cryptocurrency lingo for a computer with no internet connection. This way, it would require physical access to get the private keys.
Type 2 deterministic wallet
Armory and Electrum, both open-source wallets, provide a service where a seed generates private keys for all bitcoin transactions.
This seed means that you only ever need one backup. In the cases of losing a wallet, the creation of a new one with all your transactions and private keys intact is possible with the help of the seed.
Fragmented Backups to the rescue
Say you are unsure about the physical security as well. You can always turn to fragmented backups. This consists of a seed consisting of six fragments that are safe across different locations.
One would only require four fragments of this seed to access it, which is still a number greater than one. Armory wallet offers a feature to access this fragmented backup.
Dedicate devices especially for this use
It is always a good habit to dedicate a USB key of its own for the moving of data from an online computer to an offline one. Through this dedicated use, we can ensure to minimize any potential malware attacks.
Some users even go as far as dedicating an offline computer solely for its operating as an offline wallet.
Switch to Linux
Since the conception of better-operating systems, many have turned their backs on Linux. But Linux has a history of being able to successfully resist all USB based attacks.
This feature can come to a bitcoin user’s rescue and can increase the security of their transaction ten folds. Make sure to use Linux for bitcoin transactions from online to offline computers, as these are best done via a USB drive.
Ensure your PC is secure
Disregarding antivirus software updates is common practice. But if you are actively using your desktop for making bitcoin transactions, then ensure to keep your PC updates and safe from all viruses.
Apart from these updates, ensure to stay on top of other security checks as well. As a rule, always avoid unsecured websites. This is because even one hole in the wall and the whole computer can be hacked.
For more tips, visit https://bitcoinsystem.app/de
Securing your bitcoin transaction only requires a bit of patience and common sense. The above-listed tips to do so prose it all. So, make sure to take the time to follow a few of these to ensure a safe and secure bitcoin transaction.