Bitcoin is the cryptocurrency that everyone is talking about and if you have decided you want to start to diversify your investment portfolio and purchase some Bitcoin, there is much to consider. Firstly, you need to be sure that the company you buy your Bitcoin from are, in fact, genuine. This can be achieved by doing a little online research, and with that in mind, here are some essential security tips to help you with your initial investment.
- Create Multiple Bitcoin Virtual Wallets – You should not use the same virtual wallet for everything, and as you can create as many as you like, you need to have several. When they want to buy Bitcoin Melbourne investors get from Bitcoin Dealers who are a well-established online Bitcoin dealer who can also offer sound advice to the newcomer.
- Protect Your Privacy – Never let anyone have your private key, which is similar to a PIN number on an ATM card and is there to prevent fraud. If no one ever accesses your private key, then your Bitcoins are safe, and by ensuring that your private key is stored securely, you are doing all you can to help prevent becoming a victim of cyber theft. You can actually encrypt your private key – just make sure you don’t lose the password!
- Don’t Keep Savings In A Web Wallet – There have been instances of Bitcoin web wallets being hacked into, so make sure you only keep a nominal amount in your web wallets. In the very unlikely event you are the victim of a cyberattack, the amount you lose will be minimal. Once you understand how blockchain technology works, you will have a better understanding of how to protect your digital assets.
- Separate Storage – If you store your web wallet private key in a separate location, such as a memory stick or your substitute smartphone, it is that much harder for anyone to access it. You could always have your unique QR code printed onto paper, which you keep in your safe, which is another way of preventing fraud.
- Always Backup – There are options to back up both private and public keys and you should always create backups, which could come in very handy if your computer was to be destroyed. The way Bitcoin technology works, your value is not stored on your device, it is on a public ledger, and with your backup, you can access your funds using any device that has the right software installed. This means you can lose the device on which your wallet is installed and there’s no risk of anyone being able to access your Bitcoin account, even if they have your device.
If you think you are ready to start buying Bitcoin, an online search will help you to locate a reputable Bitcoin dealer and they can help you to get started and by remembering all of the above, your investment will be as safe as houses. It makes sense to do a little online research before making an investment, just to be sure you know what you are doing.