Although Bitcoin’s decentralized network is inherently secure, genuine financial independence requires security-conscious individuals to take full ownership of the safety of their assets.
This article explores five methods to help protect your Bitcoin-native assets.
What Are Bitcoin-Native Assets?
Bitcoin native assets are digital assets issued and transmitted through the Bitcoin network. Because they are built to operate within the Bitcoin ecosystem, these digital assets benefit from the blockchain’s unique decentralized, immutable, and secure aspects.
Bitcoin-native digital assets are especially significant to the network as they open up more use cases for the world’s first blockchain. While Bitcoin was initially meant to provide a global peer-to-peer payment system, revolutionizing technology. Bitcoin-native assets have expanded the network’s utility to a range of financial and non-financial use cases, including building NFTs on Bitcoin. You can trade these digital assets and use them as a medium of exchange or as a store of value.
How to Keep Your Bitcoin-Native Assets Safe
Below are five ways to enhance the security of your Bitcoin-native assets.
Use a Self-Custody Wallet
A self-custody wallet allows you to assume full control over your crypto assets. There’s no third-party involvement, meaning you don’t entrust your wallet’s security to a third-party wallet or an exchange, whether centralized or decentralized.
Instead, you retain sole custody of your wallet’s private keys. You can buy, send, store, and receive bitcoin or make payments whenever you want with no third-party confirmation. To get started, identify a reliable self-custody wallet provider, then transfer your bitcoin from a centralized exchange to the self-custodial wallet.
With a self-custody wallet, your assets’ security depends solely on you.
Securely Backup Your Secret Recovery Phrase
Backing up your secret recovery phrase is crucial because forgetting or misplacing the passcode to your crypto wallet could mean losing your funds forever.
Secure and regular backups of your secret recovery phrase come in handy if you shift your wallet from one device to another. In case of computer failure or if your phone breaks down or gets stolen, you can use the secret phrase to restore your wallet.
Refrain from storing your secret phrase in your devices, as anyone could access it by stealing the device. Write it down on a piece of paper or engrave it on a piece of metal and keep it somewhere safe, like a safe or safety deposit box. Ensure you also make copies in case you lose one.
Opt for Multi-Signature Wallets
A multi-signature wallet enhances the safety of your Bitcoin assets since to effect a transaction requires multiple keys or approval from several people.
For a 2 out of 3 multi-signature wallet, you need signatures from 2 keys before you can make a transaction.
To enhance security even more, only share your wallet with trustworthy people or place the wallet keys in separate geographical regions. This will make it harder for a hacker to access your crypto.
Do Your Own Research (DYOR)
Navigate cryptocurrency security like a pro by doing your own research (DYOR). This entails conducting independent yet thorough research into different ways of preserving your bitcoin. Ensure you understand the different modes and their ideal use cases.
For instance, if you have considerable bitcoin investments, consider using a self-custodial wallet such as Xverse Wallet. It offers a higher level of security and leaves you in complete charge of all transactions.
DYOR can also help you avoid scams. Proper research sharpens your ability to spot fraudulent schemes, helping you safeguard your crypto.
Ignore Malicious Links
Phishing scams are one of the easiest ways for hackers to access your Bitcoin-native assets. These scams can take various forms, including imitating legitimate sites.
Avoid clicking on any links unless you are sure that they are legit. Always double-check a URL and verify it before opening. Also, be mindful not to download any attachments sent from suspicious email addresses to protect your wallet from malicious software attacks.
Lastly, always confirm that you’re on the correct website before entering any sensitive information.
Final Word
The Bitcoin blockchain is highly secure, but it doesn’t hurt to apply extra measures to heighten the security of your bitcoin. Besides hacking or theft, you could lose your bitcoin because of computer failure or losing your access keys.
No cryptocurrency storage method is 100% foolproof, but following stringent security measures like the ones outlined here can help keep your Bitcoin-native assets secure.
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