Learn How to Protect Your Bitcoins from Loss or Theft

Just like traditional currency, bitcoin too can be lost or stolen. It is crucial to
take steps to protect your bitcoin or you may end up in a situation where your
bitcoins are coin and there is absolutely no way to get them back. You can�t go to
the police because unlike normal theft or burglary, most police are not equipped to
handle digital theft, etc.

Prevention is better than cure. Follow the steps below to safeguard your money.

The number one reason people lose their bitcoins is through carelessness. Bitcoins
are kept in a digital wallet. There is an encryption and a password. If you commit
the password to memory and forget it later on, it is impossible to recover the
bitcoins. This has happened to many people and they were never able to retrieve
their coins.

The best thing you can do is write down the password to your wallet and keep it
under lock and key. If you�re storing the details on a portable hard drive, make a
backup and keep that under lock and key too. As always, write down the details.
There is no substitute for good �l pen and paper when it comes to this.

It would be a good idea to use paper wallets because of their high level of
security.

While all these measures are good to protect your bitcoins from digital theft, one
must not neglect threats in the real world. There may be IT savvy thieves who may
know that you have bitcoins and will steal them if they have a chance.

Do not go around boasting to every Tom, Dick and Harry that you have bitcoins and
they are a dream come true. Someone who is familiar with the system may be looking
for an opportunity to relieve you of these coins.

Keep your bitcoin wallet encrypted and under lock and key. Friends, relatives and
even strangers may steal your bitcoins. The temptation is always there. So, keep a
low profile as far as your investments are concerned.

The internet is not a safe place. If you are surfing online a lot, you may have all
types of malware, keylogger software, etc. on your computer without even realizing
it. These software will send details to your bitcoins, passwords, credit card
details, etc. to the person trying to hack into your account. Anything is possible.

The threats of hacking are very real and this is not a case of �it only happens to
others�. It can happen to you too. So, take steps to secure your computer from
these attacks. Invest in a good computer security system.

Make sure your computer operating system is clean. Keep only small amounts of
bitcoin in your wallet if you�re making purchases online. In this way, even if
there is theft, the amount lost will be minimal.

Implement a 2-Factor authentication feature. This means that anytime you try to use
your bitcoin, you will receive a text message on your phone with a one-time
password. Only after you key in the password, will you be able to access the
bitcoin.

These are just some of the ways that you can protect your bitcoin. Always remember
that the initial hassle to protect your bitcoins will pay off in the long run.

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