What are the best practices for storing bitcoin securely?

3 answers

• Jan 14, 2022 · 3 years ago
  One of the best practices for securely storing bitcoin is to use a hardware wallet. Hardware wallets are physical devices that store your private keys offline, making them less vulnerable to hacking. They provide an extra layer of security by keeping your private keys separate from your computer or smartphone, which are more susceptible to malware and hacking attempts. Additionally, hardware wallets often have built-in encryption and password protection features to further safeguard your bitcoin. It's important to purchase a hardware wallet from a reputable manufacturer and ensure that you keep your recovery phrase in a safe and secure location.
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• Jan 14, 2022 · 3 years ago
  Another recommended practice for storing bitcoin securely is to use a multi-signature wallet. A multi-signature wallet requires multiple private keys to authorize transactions, providing an added layer of security. This means that even if one of the private keys is compromised, the funds cannot be accessed without the other authorized signatures. Multi-signature wallets are especially useful for businesses or individuals who want to distribute control over their bitcoin holdings among multiple parties. It's important to carefully manage and securely store the private keys associated with a multi-signature wallet to prevent unauthorized access.
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• Jan 14, 2022 · 3 years ago
  At BYDFi, we recommend using a combination of hardware wallets and cold storage for securely storing bitcoin. Cold storage refers to keeping your private keys offline, such as on a computer that is not connected to the internet or on a physical paper wallet. This eliminates the risk of online hacking and malware attacks. It's important to ensure that your cold storage devices or paper wallets are kept in a secure and protected location, such as a safe or a safety deposit box. Regularly backing up your private keys and keeping them in separate physical locations can also provide an extra layer of protection in case of loss or damage to your primary storage device.
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