How to Prevent Bitcoin Fraud by Securing Your Identity

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With Bitcoin, your transactions are secure, but your wallet may still be vulnerable. To get the most out of Bitcoin’s security advantages, you need to make sure your wallet’s safe. 

Guarding Private Security Keys

The easiest way into your wallet is with your private security keys. If you want to keep your Bitcoin secure,

you’ll have to adopt safe security key management. The first step is to keep offline backups of all your keys.

You should take steps to make sure these offline backups are safe, too. The most straightforward way to do this is to store them off your computer, like on a flash drive or physical document. Be careful to protect these storage solutions, too, not letting them slip into the wrong hands.

You can also turn to security software to keep hackers from accessing your backups. If you choose to go this route, make sure you update your software and operating system frequently.

Crypto Account Management

If you use a service to store or protect your Bitcoin, you’ll have to secure that account. If a fraudster can convince the service that they’re you, they can gain access to your cryptocurrency. Since email compromise is the leading type of online fraud, you can start by securing your email.

Use two-factor authentication for all of your email addresses. You may consider using email security software as a second layer of defense as well. While you’re at it, it’s a good idea to set up two-factor authentication on any service you can.

Make sure you never use the same password for more than one account. If you have trouble creating or remembering strong passwords, you can use a password manager.

Other Standard Security Practices

As with traditional currency, be careful where you send your Bitcoins. While hackers may not be able to access your wallet through a transaction, they can fool you into paying them. Always double-check to make sure a company or product is legitimate before paying them.

Using more than one Bitcoin wallet is always a safe practice. That way, if hackers get into one, they won’t be able to access all your money. You may also want to use a VPN while accessing your wallet and update your operating system regularly.

Plan to Use Bitcoin? If So, Keep Your Data Secure

Bitcoin allows you to secure your finances more than you’d be able to with a credit card. It’s possibly the next step in digital currency, offering more financial freedom and safety. Just be sure that you don’t get too comfortable with its security.

You should be just as careful with Bitcoin as you are with traditional money. If you take the right steps to secure it, though, then you can use cryptocurrency without fear.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © Frank-Peters

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By: Martin Banks
Title: How to Prevent Bitcoin Fraud by Securing Your Identity
Sourced From: cryptocurrencynews.com/prevent-bitcoin-fraud-securing-identity/?utm_campaign=rss__ccn&utm_source=rss&utm_medium=rss
Published Date: Fri, 19 Jun 2020 16:25:20 +0000