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6 Tips to Keep Your Bitcoin Wallet Safe

By September 22, 2020May 9th, 20236 minute read

Bitcoin is a powerful financial settlement system because of a strong and secure blockchain technology-based foundation. But as it is said – A chain is only strong as its weakest link.

You as a user also contribute to Bitcoin’s overall strength and security. But if you are not careful about the proper storage of your BTC funds, your bitcoins could become someone else’s.

Only with adequate safety and security of your bitcoin wallet, you can truly be in control of your money. Here’s how you can keep your BTC wallet safe.

Practice Online Security Religiously

Bitcoins are secured by an SHA-256 hash algorithm but that doesn’t mean that they can’t be stolen because of how you store them. Just like your social media accounts, PC and bank accounts, your BTC wallets are prone to hacking/phishing attempts. 

Hackers, scammers and other cybercriminals try different methods to convince you to give up your bitcoins. Sometimes they pose as one of your acquaintances or someone you trust.

Then they convince you to share your BTC funds. Sometimes they lure you into a trap by making you download so-called genuine applications. Else they just pick up your email, cell phone numbers, and other pieces of information right from the internet.

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You must be aware of the tricks employed by these online robbers. At WazirX, we do everything we can to keep your crypto funds safe, but here are a few things that we recommend for you: 

  • Create strong passwords for your account(s). This is the most important step. Create strong passwords that include numbers, characters, capital letters, and symbols.
  • Do NOT share your passwords, do not share your OTPs and do not save them in your email accounts.
  • Check the official URL and the lock symbol while accessing the exchange website.
  • Don’t fall for scammers in Telegram groups or any other website. Anyone asking for funds, passwords, or OTP online is probably a scammer.
  • Never share your private keys or account information on mail, chat, or any social media sites.
  • Use 2-factor authentication (2FA)

Using 2-Factor Authentication is probably the most important thing to do. If you haven’t enabled 2FA, your crypto is at risk.

Backup Your Bitcoin Wallet

You must always remember to encrypt your bitcoin wallet and create a backup of the seed/recovery phrase and store it in a safe place. This will help you recover your funds in an event of theft of your computer/smartphone.

Also, it is important to keep in mind that single storage points are bad for security. You should not store your bitcoin wallet backup in a single location. Consider using different storage options like USB keys, papers, and CDs.

If you are a daily bitcoin trader, you need to backup your wallet on a regular basis. This will ensure that all your recent change addresses and all new BTC addresses that you created are included in your backup.

Enable Offline Transaction Signing For Your Offline BTC Wallet

Offline wallets or cold wallets provide optimum security for stored BTC funds. But using a cold/offline wallet in addition to backups and encryption can level up things. Here’s how:

Imagine two computers sharing some parts of the same offline bitcoin wallet that you have. Disconnect the first one from any internet based networks.

Designate it as the computer that ‘actually’ has your wallet and has authority to sign transactions. Connect the second computer to the internet. It must only have a watching wallet with the access to create only unsigned transactions. Now:

  1. Create a new bitcoin transaction on your online computer and save it on a USB drive
  2. Sign the transaction with your offline computer
  3. Send the signed transaction with your online computer

As your online computer cannot sign transactions, it cannot be used to withdraw any bitcoin funds if it is compromised. Bitcoin wallet security just got leveled up good!

Update Your Wallet

It seems inconsequential but apparently isn’t. Updating your bitcoin wallet software on a periodic basis can go a long way in ensuring the safety and security of your stored BTC funds.

Also in this case of a computer and smartphone-based bitcoin wallet (like the official WazirX exchange wallet), it is also important to keep all other applications and software updated. To ensure a safe environment for your BTC wallet.

Consider Activating Multisig Feature

Bitcoin is probably the only asset that allows a multiple transaction approval feature. This means that BTC transactions can happen only if more than one individuals sign them.

Suppose you have a significant bitcoin stash that is known to other members of your family/organization. Through the multi-signature feature, you all can have access to the wallet/storage with the exception of allowing a withdrawal only if the majority of members sign the transaction.

Utilize a Separate Wallet For Daily Trades

We emphasized the need to back up your bitcoin wallet regularly in case you engage in daily BTC trades. However, it is better if you just use a separate wallet altogether for the same.

You can trade with one wallet(s) and HODL the rest of your BTC on another.

How to Buy Bitcoins (BTC) With INR in India?

With WazirX you can avail the best BTC to INR exchange rates in India. Also what you get is unmatched crypto transacting experience.

To buy bitcoin through WazirX, you need to register on the platform first, then finish a super quick KYC process and finally deposit funds for the purchase. Here’s how it goes:

Step 1: Account Creation

  • Download the WazirX app or visit the website. Then hit the Sign Up button
  • Fill in your email address (one that you use frequently), and your desired password
  • Click on the Terms of Service checkbox, but go through it once before checking
Signup to WazirX
  • Then press the Sign Up button
  • You will be sent a verification email after hitting the sign-up button. If you have received it, click on Verify Email to complete the process.. If you haven’t, check your spam folder. Or hit Resend Here. On successful verification, you should see this message:
WazirX Signup Process

Securing Your Account

For security purposes, we highly recommend enabling 2-factor authentication (2FA). You can do so by downloading the Google Authenticator app and connecting it to your account.

WazirX Signup Process - Security

KYC Verification

The last stage in the account set up process is KYC verificationSelect your country from the list:

WazirX Signup Process - Country Select

Then verify your KYC and finish the process. After that, you are all set to buy BTC with INR from WazirX!

Step 2: Depositing Funds

Depositing INR

You can deposit INR funds from your bank account to your WazirX account via UPI/IMPS/NEFT/RTGS.

Just submit details like bank name, account number, IFSC code, etc of the bank account with which you wish to transact, and then you are good to go.

In case the INR deposit is rejected, check out the WazirX support page for such issues.

Depositing Cryptocurrency

Depositing cryptocurrencies into your WazirX account, either from your wallet or another exchange is an effortless process. It’s also free – with no fees charged on any deposit!

Start by obtaining your deposit address from your WazirX wallet. Then, share this address on the ‘Send Address’ section of your other wallet for transferring your cryptocurrencies.

For more details, check out the WazirX Support page on depositing cryptocurrencies.

Step 3: Buy Bitcoin with Indian Rupees

With all the necessary steps covered, you are now ready to buy bitcoin with your deposited funds. Here’s the process:

Log on to the WazirX app or website to view the latest BTC/INR prices.

On the app, press the BTC/INR price ticker. After that, scroll down a bit, and you will find the BUY/SELL  button amongst the ‘Charts’, ‘Orders’, ‘Trades’, and ‘My Orders’ options at the bottom.

Enter the INR amount with which you want to buy bitcoin. Note that this amount should be less than or equal to the INR funds deposited in your WazirX account.

Hit BUY, and wait for the order to execute.

Once the transaction is executed, you should find the bitcoin bought added to your WazirX wallet.

Also you can download the app and Start Trading Now!

Android App – Bitcoin Exchange

iOS App – ‎WazirX

Frequently Asked Questions

How To Convert Bitcoin To Cash?

There are many ways of converting Bitcoin to cash, such as crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, Peer to Peer Transactions. You can use cryptocurrency exchanges such as WazirX for this. Unlike typical ATMs, which allow you to withdraw money from your bank account, a Bitcoin ATM is a physical location where you may buy and sell Bitcoins using fiat currency. Several websites provide the option of selling Bitcoin in return for a prepaid debit card that may be used just like a standard debit card. You can sell Bitcoin for cash through a peer-to-peer platform in a faster and more anonymous manner.

What Are The Chances Of Bitcoin Crashing?

Two Yale University economists (Yukun Liu and Aleh Tsyvinski) produced research titled "Risks and Returns of Cryptocurrency" in 2018. They looked at the possibility of Bitcoin crashing to zero in a single day. The authors discovered that the chances of an undefined tragedy crashing Bitcoin to zero ranged from 0 percent to 1.3 percent and was around 0.4 percent at the time of publishing, using Bitcoin's history returns to determine its risk-neutral disaster probability. Others claim that because Bitcoin has no intrinsic value, it will inevitably crash to zero. On the other hand, Bitcoin advocates argue that the currency is backed by customer confidence and mathematics.

Is Bitcoin A Good Investment For The Future?

Some investors are afraid of the risks or devastation, but others are very eager to pursue the possibility of profit from a Bitcoin investment. A Bitcoin investment is similar to stock investing, except it can be more volatile.

What Is Bitcoin?

Bitcoin is a decentralized digital currency that may be purchased, traded, and traded without intermediary like a bank. Bitcoin is built on the blockchain, which is a distributed digital ledger. Wei Dai suggested a new kind of money that relies on cryptography rather than a central authority to oversee its production and transactions on the cypherpunks mailing list in 1998. Bitcoin was the first application of that notion. In 2009, Satoshi Nakamoto sent out the first Bitcoin specification and proof of concept to a cryptography mailing group.

How Much Is 1 Bitcoin Worth Today?

Check out the current price of Bitcoin on the WazirX exchange. Bitcoin's value is primarily determined by its supply and demand in the market. Other elements have an impact on its worth. Its intrinsic value can also be calculated by calculating the average marginal cost of producing a Bitcoin at any given time, based on the block reward, electricity price, mining hardware energy efficiency, and mining difficulty.

What Is Meant By Bitcoin?

Bitcoin is a digital currency that was initially released in January 2009. It is based on ideas offered by Satoshi Nakamoto, a mysterious and pseudonymous figure, in a whitepaper. The name of the person or individuals who invented technology has not been revealed. Bitcoin promises lower transaction fees than other online payment systems, and unlike government-issued currencies, it is decentralized.

How To Invest In Bitcoin?

Bitcoin may be invested in two ways: through mining or exchanges. Bitcoin mining is carried out by high-powered computers that solve challenging computational arithmetic problems that are too difficult to complete by hand and complex enough to tax even the most powerful computers. WazirX, a Bitcoin exchange, is another alternative.

What Is Bitcoin Used For?

Bitcoin was created as a means of sending money over the internet. The digital currency was designed to be a non-centralized alternative payment system that could be used in the same way as traditional currencies. Bitcoin is being used by an increasing number of businesses and individuals. This includes establishments such as restaurants, apartments, and law firms.

Can Bitcoin Be Converted To Real Money?

Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.

How Bitcoin Mining Works?

Bitcoin mining is a crucial element of the blockchain ledger's upkeep and development and the act of bringing new Bitcoins into circulation. It's done with the help of cutting-edge computers that solve exceedingly challenging computational arithmetic problems. Auditor miners are rewarded for their work. They're in charge of ensuring that Bitcoin transactions go through smoothly and legitimately. This standard was established by Satoshi Nakamoto, the founder of Bitcoin, to keep Bitcoin users ethical. By confirming transactions, miners assist in avoiding the "double-spending issue."

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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