A Deeper Insight to the Safest Ways to Handle Your Bitcoin Wallet Private Keys
Within the context of virtual currencies otherwise known as cryptocurrencies, of which Bitcoin is the pioneer and the most popular, the concept and safety of private keys cannot be overemphasized.
Investopedia define private key as a sophisticated form of cryptography that allows a user to access his or her cryptocurrency. A private key is an integral aspect of bitcoin and altcoins, and its security make up helps to protect a user from theft and unauthorized access to funds.
Private keys are a major feature of decentralized exchanged where every user keeps his/her private keys offline. As of today, many cryptocurrency investors have lost very valuable assets due to loss of private keys. These private keys are not retrievable as they are not stored by the exchange and is thus, a major responsibility of the user to keep his or her private keys safe.
My article today focuses on ways you can keep your Private keys safe. However, method you have employed before, these tips can help reinforce your current safety measures and thus remove the headache associated with loss of your private keys. Let’s go over these tips:
- Offline Safekeeping: Back in 2018, I was told by a friend to always write down my private keys for safekeeping. I pondered so much on this counsel and found a slight modification to it. I started writing down my private keys, legibly in a plain sheet, scanning them and uploading on my Google drive/dropbox.This way, you are guaranteed of the safety of the private keys. In order not to complicate the accessibility of the keys in the new future, ensure you save them in an account that you use personally.
- Use a Ledger Wallet: Hardware wallets are secure, offline devices. They store your bitcoin and altcoin offline so that the possibilities of you being hacked is eliminated. Example of Ledger wallets include Ledger Nano S, Ledger Blue etc are cheap and The Ledger Nano S wallet is a USB storage wallet while the Ledger Blue is a handheld device with a touchscreen and USB and Bluetooth connectivity.Ledger wallets are ideal for every type of cryptocurrency user as it is much more possible to lose your assets by sheer mistake than even by hacking as a result, Ledger wallets helps reduce these threatening occurrences. Ledger wallets are suitable for crypto-investors who own or trade many coins simultaneously.
These hardware devices always have physical buttons that enables the possibilities of transaction confirmations physically and as such, keeping hackers away. The price of the ledger wallets could be as much as $100 but they sure save investors a lot more than that.
- Choose a strong Password: Using a very strong password to access your private keys is also a great security measure. Just like your signature that is unique to you, every crypto-investor is advised to develop a strong password that cannot easily be guessed. Generated passwords may also be securely stored.
- Share Private Key with A trusted Next of Kin: Of great importance is the safekeeping of your private keys with a trusted next of Kin or ally. In order not to get locked out of assets as we’ve learnt in the past weeks in the case of Gerald Cotten of QuadrigaCX, Canadian’s first cryptocurrency exchange whose owner died and locked investors away from their assets as he alone has the password to his encrypted laptop.To prevent such occurrences as this, I’d advice you share some details to your trusted ally, the number of which is in the investors discretion.
Major developers in the cryptosphere are always working hard to design ways to ensure safe transactions for everyone but as is pertinent to every business, each investor must take responsibility of His assets and protect them from any form of theft or loss. So, do these three basic things and more to guarantee yourself a crypto-journey devoid of headaches.