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Like in real life, your wallet must be secured.​

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Bitcoin makes it possible to transfer value anywhere in a very easy way and it also allows you to be in control of your money.​

Such great features also come with great security concerns.​

At the same time, Bitcoin can provide very high levels of security if used correctly.​

Always remember that it is your responsibility to adopt good practices in order to protect your money.​

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Be careful with online services​

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You should be wary of any service designed to store your money online.​

Many exchanges and online wallets suffered from security breaches in the past​

and such services generally still do not provide enough insurance and security to be used to store money like a bank.​

Accordingly, you might want to use other types of Bitcoin wallets.​

Otherwise, you should choose such services very carefully.​

Additionally, using two-factor authentication is recommended.​

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Small amounts for everyday uses​

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A Bitcoin wallet is like a wallet with cash.​

If you wouldn’t keep a thousand dollars in your pocket, you might want to have the same consideration for your Bitcoin wallet.​

In general, it is a good practice to keep only small amounts of bitcoins on​

your computer, mobile, or server for everyday uses and to keep the remaining part of your funds in a safer environment.​

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Backup your wallet​

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Stored in a safe place, a backup of your wallet can protect you against computer failures and many human mistakes.​

It can also allow you to recover your wallet after your mobile or computer was stolen if you keep your wallet encrypted.​

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• Backup your entire wallet​

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Some wallets use many hidden private keys internally.​

If you only have a backup of the private keys for your visible Bitcoin addresses,​

you might not be able to recover a great part of your funds with your backup.​

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• Encrypt online backups​

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Any backup that is stored online is highly vulnerable to theft.​

Even a computer that is connected to the Internet is vulnerable to malicious software.​

As such, encrypting any backup that is exposed to the network is a good security practice.​

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• Use many secure locations​

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Single points of failure are bad for security.​

If your backup is not dependent of a single location, also it is less likely that any bad event will prevent you to recover your wallet.​

You might also want to consider using different medias like USB keys, papers and CDs.​

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• Make regular backups​

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You need to backup your wallet on a regular basis to make sure that all recent Bitcoin change addresses​

and all new Bitcoin addresses you created are included in your backup.​

However, all applications will be soon using wallets that only need to be backed up once.​

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Encrypt your wallet​

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Encrypting your wallet or your smartphone allows you to set a password for anyone trying to withdraw any funds.​

This helps protect against thieves, though it cannot protect against keylogging hardware or software.​

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• Never forget your password​

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You should make sure you never forget the password or your funds will be permanently lost.​

Unlike your bank, there are very limited password recovery options with Bitcoin.​

In fact, you should be able to remember your password even after many years without using it.​

In doubt, you might want to keep a paper copy of your password in a safe place like a vault.​

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• Use a strong password​

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Any password that contains only letters or recognizable words can be considered very weak and easy to break.​

A strong password must contain letters, numbers, punctuation marks and must be at least 16 characters long.​

The most secure passwords are those generated by programs designed specifically for that purpose.​

Strong passwords are usually harder to remember, so you should take care in memorizing it.​

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Offline wallet for savings​

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An offline wallet, also known as cold storage, provides the highest level of security for savings.​

It involves storing a wallet in a secured place that is not connected to the network.​

When done properly, it can offer a very good protection against computer vulnerabilities.​

Using an offline wallet in conjunction with backups and encryption is also a good practice.​

Here is an overview of some approaches.​

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Keep your software up to date​

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Using the latest version of your Bitcoin software allows you to receive important stability and security fixes.​

Updates can prevent problems of various severity, include new useful features and help keep your wallet safe.​

Installing updates for all other software on your computer or mobile is also important to keep your wallet environment safer.​

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Multi-signature to protect against theft​

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Bitcoin includes a multi-signature feature that allows a transaction to require multiple independent approvals to be spent.​

This can be used by an organization to give its members access to its treasury​

while only allowing a withdrawal if 3 of 5 members sign the transaction.​

Some web wallets also provide multi-signature wallets, allowing the user to keep control over their money​

while preventing a thief from stealing funds by compromising a single device or server.​

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Think about your testament​

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Your bitcoins can be lost forever if you don’t have a backup plan for your peers and family.​

If the location of your wallets or your passwords are not known by anyone when you are gone,​

there is no hope that your funds will ever be recovered.​

Taking a bit of time on these matters can make a huge difference.​