Bitcoin is considered to be the forerunner of the cryptocurrency race. Because of this, virtual currencies become stronger and more popular than they were before. However, with the sudden surge in its application, there comes along the rise of fraud and hacking.
Know the Risks Associated in Storing Bitcoins
Because regulatory framework is somewhat behind a little, owners of this digital coin have few resources in events when digital wallets are robbed.
Bitcoins can be accessed via keys like passwords and addresses which are then kept in Bitcoin wallet. Say that the digital wallet isn’t secured enough, then it’ll give hackers the possibility to steal these keys and have access to your cryptocurrency.
Improving Security of Your Bitcoins
To avoid this from happening, cold storage would be a smart way to effectively secure your digital wallet. This will involve owners to store their coins online and disconnected from the internet. While such method is somewhat inconvenient compared to encrypting, this shuts down hackers from accessing it.
Few of the frequently used methods cold storage include Paper Wallet that involves private and public keys being printed onto paper. Typically, this has QR code that could be scanned quickly for doing transactions.