What are the best practices for securing your bitcoin in self custody?

6 answers

• Dec 16, 2021 · 3 years ago
  One of the best practices for securing your bitcoin in self custody is to use a hardware wallet. Hardware wallets are physical devices that store your private keys offline, making it extremely difficult for hackers to gain access to your bitcoin. These wallets are designed to be secure and resistant to malware attacks. By keeping your private keys offline, you significantly reduce the risk of your bitcoin being stolen. Additionally, make sure to keep your hardware wallet in a safe place and create a strong PIN or passphrase to protect it.
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• Dec 16, 2021 · 3 years ago
  Another important practice is to regularly update your software and firmware. Developers often release updates to fix security vulnerabilities and improve the overall security of their wallets. By keeping your software and firmware up to date, you ensure that you have the latest security patches and features. This helps to protect your bitcoin from potential threats. Remember to only download updates from official sources and avoid clicking on suspicious links or downloading files from unknown websites.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we recommend using a multi-signature wallet for self custody of your bitcoin. A multi-signature wallet requires multiple private keys to authorize transactions, adding an extra layer of security. This means that even if one of your private keys is compromised, your bitcoin will still be safe. It's important to store your private keys in separate physical locations to minimize the risk of theft or loss. Additionally, consider using a strong and unique password for your wallet and enable two-factor authentication for added security.
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• Dec 16, 2021 · 3 years ago
  Securing your bitcoin in self custody also involves practicing good online security habits. Avoid sharing your private keys or wallet information with anyone and be cautious of phishing attempts. Phishing is a common method used by hackers to trick people into revealing their private keys or other sensitive information. Always double-check the URLs of websites and ensure that you are visiting the official website of the wallet provider. If something seems suspicious, trust your instincts and do not proceed.
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• Dec 16, 2021 · 3 years ago
  When it comes to self custody of bitcoin, it's crucial to have a backup plan. Accidents can happen, and you don't want to lose access to your bitcoin if your hardware wallet gets damaged or lost. Create multiple backups of your private keys and store them in secure offline locations, such as a safe deposit box or a fireproof safe. Make sure to encrypt your backups and test the restoration process to ensure that you can recover your bitcoin if needed.
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• Dec 16, 2021 · 3 years ago
  Remember, securing your bitcoin in self custody requires a proactive approach. Stay informed about the latest security practices and be cautious of potential threats. By following these best practices and taking the necessary precautions, you can significantly reduce the risk of losing your bitcoin assets.
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