How Secure Is a Payment Transaction Using Bitcoin?

bitcoin wallet

Bitcoin is enjoying exponential usage across the globe with growing populations understanding what it is and how it can benefit them. Some others are wary of getting involved because they worry about the security of cryptocurrency and the safety of making a bitcoin transaction.

Nothing is certain when making a transaction with bitcoin, but the same can be said about using your bank card. Ultimately, fintech companies and savvy tech professionals have enabled bitcoin transactions to become incredibly safe in the way they design their products, constantly monitor them and prioritize security over everything else. These companies make security the pinnacle of their work because one flaw could damage their reputation beyond recovery and destroy their business.

Despite layers of security and ongoing improvements, there are ways that you can make your bitcoin holdings and transactions even safer.

Choosing the Right Bitcoin Wallet

The first step in holding and transferring bitcoin safely is choosing an electronic wallet that is reputable and secure. This means doing your research and finding wallets with a flawless security history. The Luno Bitcoin Wallet is one such wallet and offers newbies and seasoned crypto geeks an array of convenient features for their bitcoin affairs.

Backup Your Bitcoin Wallet

Along with choosing carefully, you are also required to backup your bitcoin wallet in the event of a computer crash or human error. This ill also save you if your computer is stolen. When backing it up you must also encrypt your backup and do it in multiple locations from USB sticks to CDs. Single points of backup are not the best practice for business security.

Encrypt Your Bitcoin Wallet

Encrypting your wallet and smartphone will go some way to heightening the security of your Bitcoin and future transactions. Although it must be noted that doing so does not prevent key logging software or hardware. When you come up with a password, it is essential that you will be able to remember it in years from now. There are limited to absolutely no methods of retrieving forgotten passwords in these situations.

Other Things to Consider

As well as focusing on having a protected wallet, there are other actions to consider. Using a VPN to access the wallet is advised and you should never use a public WiFi to access your funds or make a transaction. Other actions are also not advised such as speaking about your crypto holding online on social media or writing down security keys.

You may also want to inform a trusted person about your Bitcoin holdings privately. It is estimated that deceased people have been holding Bitcoin without the knowledge of their family and their investment is now unknown and lost forever.

Bitcoin transactions are already secure, but with a lack of financial netting to catch you when things go wrong, you can’t afford not to choose the best wallet and use it responsibly.