One potential solution is a “paper wallet.” This involves printing off a piece of paper that shows the keys to your BitCoin Wallet, using a QR code to make it easy for transactions. This paper wallet means that you are not vulnerable to any malware, computer failures or other cyber attacks, as it is a physical key. However, being a physical piece of paper means that it is vulnerable to all of the same things that regular money is, such as wear over time, fire, water damage, loss and so on.
So what can you do to protect against the new dangers that are associated with this new digital currency? There are a number of actions that you can take:
1. Be smart. As with any kind of online activity, common sense is the most important defense against cyber attacks. When you come across an online “bank,” make sure that it is respectable and find some good reviews to back up your decision.
2. Use small amounts. Just as you wouldn’t carry thousands of dollars around in your physical wallet, you should avoid storing too much BitCoin on one device at any given time. Stick with small amounts, and you will only have small amounts that are vulnerable to theft.
3. Back it up. Store a backup of your wallet in a secure place. This will help against loss as well as computer failures and human mistakes.
4. Get security. Your digital assets need just as much protection as your physical ones, if not more. Basic antivirus software is generally not good enough to protect against the new threats that your money faces with BitCoin, so make sure that you are paying for the best.
As BitCoin becomes more common, so will hackers who are trying to steal it. However, as hackers improve, so do threat prevention techniques, and with every new attack, we learn more about ways to stop them. This type of digital currency will grow into the future and if you want to embrace it, taking the necessary steps of precaution is key to protection.