New investors are more at risk of losing their Bitcoin easily. Without adequate knowledge about the dos and don’ts of cryptocurrency, beginners can find themselves in a situation where they lose money from their digital investment. The unregulated and decentralized nature of Bitcoin makes it almost impossible to seek redress if a person falls victim to security attacks on their digital currency. Therefore, while you are learning how to trade your Bitcoin to make a profit, the security of your investment should also be part of your learning process.

These are important security tips for newbie investors in Bitcoin and other cryptocurrencies

Use Reliable Wallets and Exchanges

  • Research about reputable exchanges before you buy your Bitcoin

First thing to do after you have decided to buy Bitcoin is to know where to buy it. The increase in the price of Bitcoin means that there are many exchanges you can use. Learn about different exchanges to trade and how safe and secure it is to trade. Make sure you do enough research about the user experience, security features, and transaction rates before investing your assets. Many exchange platforms charge fees to withdraw coins, this can be an issue if later decide to move your digital coins to a secure third-party wallet or onto another crypto trading platform.

  • Use hybrid wallet

After you have gotten your Bitcoin from a BestBitcoinexchange, storing it should be your next priority. You can store your Bitcoin in a combination of hot wallets and cold wallet storage. Hot wallets allow you to store your Bitcoin online while cold wallets store your coins offline. For higher security, choose a cold wallet but for easy trading and accessibility, use hot wallets.

  • Secure your mobile and desktop wallet apps from phishing and hacks

Most hot wallets provide apps for users on their mobile devices but because mobile wallets apps are usually online, phishing websites with similar names to your wallet apps can easily gain access to these apps. Avoid giving too much access to certain apps on your phone so they do not gain access to your mobile applications. Desktop wallets are also at the risk of hacks and even phishing from malicious apps.

  • Get your cold wallet from the official store

Even though cold wallets are popular for their tight security buying used wallets defeats the purpose entirely. Ensure you buy your cold wallet from the official store because second-hand cold wallets might contain malware that can jeopardize your crypto investment.

  • Use different exchanges

Do not keep all your eggs in one basket. No matter how much you trust a crypto exchange, they are still susceptible to cyber attacks. Therefore, using only one exchange to buy and sell your cryptocurrency can put you at risk of losing your money. If you want to trade a high amount of cryptocurrency, you can divvy them up among different exchanges for security.

  • Keep your private key safe

As a cryptocurrency investor, you have both public and private keys. You use your public key to receive digital currency from others while your private key gives you access to validate transactions on your account. You can send your public key to people but your private key should be kept safe at all times.

  • Write down your seed phrase as a backup

Your seed contains about 24 randomly generated words to protect your account against online vulnerabilities. It is also known as a mnemonic phrase or seed. Access to your seed phrase is access to the assets in your wallet. By writing your mnemonic seed in an offline instrument like paper or printing it out, you can recover your Bitcoin if you lose your password.

Take other security measures

  • Rotate your password

Your username and password are the primary access to your wallet. New Bitcoin investors make the mistake of using simple passwords that are easy to guess. You can use a password generator if you do not know which password to choose for your wallet. You can also use a one-time password to keep your Bitcoin safe.

  • Using two-factor authentication

While a password is the basic level of security for your wallet, two-factor authentication or 2FA is an extra layer of security that gives your wallet an extra blanket against attack. You can choose from many 2FA providers online to keep your Bitcoin safe and secure. Preferably, instead of a 2FA, you can adopt multi-factor authentication to carry out several levels of security on your wallet.

  • Multisignature

Having more than one private key before a transaction is carried out gives it additional security. For both cryptocurrency newbies and experienced crypto investors, multisig is a way of ensuring that your wallet is not hacked by having two or more people jointly sign on a transaction before it is carried out.

  • Do not use one password for all your accounts

A password is not a one-size-fits-all. The password to your social media accounts like Facebook and Instagram should be separated from that of your wallet. Do not make it easy for hackers to gain access to your wallet by using the same password for all your internet activities.

Conclusion

Bitcoin newbies must know how to keep their Bitcoin safe in order not to lose money. Following the guidelines highlighted above will keep your Bitcoin safe from fraudulent attacks.