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Cryptocurrency for Beginners

HOW to SAFELY Store Bitcoin(BTC)? 3 Expensive Mistakes to avoid

2 min read
And do you know what’s even MORE PAINFUL Than that blue screen? Aside from accidentally throwing your phone in the washing machine?

How to safely store your Bitcoin?

There is a lot of marketing on buying bitcoin, but not enough on how to safely store Bitcoin.

Have you ever woken up one morning, minding your own business, you turn on the computer see a frozen update page.

You decide to reboot, get yourself a coffee and only to comeback and realize that it still isn’t working.

Worse, you get the Blue Screen of Death.

 

And do you know what’s even MORE PAINFUL Than that blue screen?

Aside from accidentally throwing your phone in the washing machine?

It is that slow heart wrenching horror when you realize that YOUR BTC WALLET BACK UPS ARE ON YOUR COMPUTER.

 

How to safely store your Bitcoin

I promise you that losing your cryptocurrency wallet that way is even more painful than seeing Bitcoin crash from $19,000 to $13,000 in a week.

Or worse you could accidentally throw your laptop away like James Howells did, to then deny caring that you lost millions to after that realize what you did which by that time it’s too late.

 

Mistake1: Keeping your BTC on any crypto exchange

Repeat after me:”Not your keys, not your wallet”

You probably hear often that hackers love cryptocurrency exchanges, more specifically, that they steal user private keys. Once someone accesses your private keys, they can access your wallet from anywhere in the world and empty it in front of you.

Here is another common tactic that you do not hear in the news:

Hackers create graphical mirror copies of the exchanges, with similar names and then place ads to appear to make them appear at the top of the search engines. This is also referred to as crypto jacking.

You probably won’t realize that you’re on a fake site and just think that the cryptocurrency exchange is down.

The truth is, they’re going to use the login and password you used on the real exchange and try it on other ones.

So, if you if you are currently keeping your Bitcoin on exchanges, bring them offline IMMEDIATELY if you are not actively trading.

Mistake 2: Avoid new crypto wallet companies

Have you noticed how new versions of windows are ridden with bugs?

If a super corperation like microsoft or even apple, with hundreds of thousands of engineers, are incapable of releasing software without bugs, you can not expect a bugless piece of software from a blockchain/cryptocurrency start-up.

Also, just like all new businesses, they could abandon projects if they are not profitable.

Another example is Paypal recently allowing users to Buy and store Bitcoin, however, users have been complaining that they are not allowed to withdraw the Bitcoin.

Mistake 3: Trusting all mobile wallet apps

I have had friends frantically call me up and complain that they were not able to restore their tokens on their wallets.

This is probably because the app was new.

 

Tip 1: Choose established Companies

For all the reasons mentioned above.

 

Tip 2: Back up your private keys IMMEDIATELY

This is really addressed to the procrastinators out there.

Your private key is the 11 word passphrase which works as your login and password.
So write down the 11 word passphrase of a piece of paper and keep in a safe place.
Depending on the amount you are storing, some people will laminate it and others might store it in a vault or safe deposit.

Always create a back up as soon as you get your Bitcoin wallet.

 

Tip 3: CREATE a SECOND Wallet for Long-term Hodling

Just like having a savings and checking account for everyday spending, you want to create one Bitcoin account for frequent use and another one for longterm holding.

 

Tip 4: Laminate your private keys

Ink fades and paper withers. Laminating your Bitcoin wallet will allow it to last years.

 

Tip 5: Get a hardware wallet

Hardware wallets are more user friendly than paper wallets and more user-friendly, especially when travelling.

If you are a naturally disorganized, a hardware wallet is a good alternative.

 

Conclusion

You are your own bank means that you are responsible for keeping your Bitcoin safe.
There is no insurance cover if you lose your wallet.
Losing your private keys basically means losing your Bitcoin.

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