The 2017 Bitcoin Theft Prevention Guide

Rage Comment : As the year draws to a close, the price of Bitcoin has been soaring. This certainly makes many holders excited. However, the hacking incidents in the cryptocurrency field this year have also made people worried. Faced with such a large amount of Bitcoin, how to keep it safe is something that many people are particularly concerned about. This article summarizes eight very practical and easy-to-operate preventive measures; I hope everyone can be at ease and happy in the new year.

Translation: Annie_Xu

2017 is just around the corner and the price of Bitcoin is soaring!

Isn't it amazing how much your Bitcoin holdings are worth? So don't let that surprise turn into frustration by losing your Bitcoins. Now is the time to take a few basic precautions to keep your crypto safe.

Here are eight personal actions you can take to improve your safety.

1. Back up in time

I can't stress this enough: back up your wallet. If you don't have one, do it now.

Most software and hardware wallets use the industry standard protocol BIP39, which allows you to back up your wallet as 12, 18, or 24 English words.

It is imperative that you write these words down on paper and keep them safe from theft or destruction. If you don't, you will most likely lose your Bitcoins forever.

2. Check wallet backup

If your wallet is backed up, remember to check the backup address.

The New Year is a good time to review important documents, including wallet backups. Can you log in? Is the lettering legible? Is there a risk of theft or damage? If you gave your backup to a lawyer, accountant, etc., have them check it.

Are they well stored? Check storage location and security.

3. Set calendar reminders

While we all know we should check our backups, wallets, and estate plans regularly, it's easy to forget.

Add a reminder to your calendar now and check again in 3, 6 or up to 12 months.

4. Don’t store your money on your smartphone

As the price of Bitcoin rises, you might be surprised by the amount of money you carry in your phone.

It is best to transfer your money to a hardware wallet or cold storage. Hardware wallets are easy to use, come with user-friendly software, and are currently the most secure way to store your Bitcoin.

Although your mobile phone can store a small amount of cash for consumption, never store more money in your mobile phone than you can carry in cash.

5. Don’t keep your money in an exchange

If your funds are on an exchange, please transfer them immediately to a wallet that you control.

Most well-known exchanges commingle Bitcoins, and although your account shows a balance, you do not actually control your keys. If the exchange is hacked, you could lose your money. Remember, only those who control the keys can control the Bitcoins; "no keys, no Bitcoins".

6. Upgrade to two-factor authentication

Add two-factor authentication to your Bitcoin account and all important online accounts; the best solution is a hardware token, which usually costs only twenty or thirty dollars.

Or use a smartphone verification app, such as Authy or Google Authenticator. SMS verification is not a perfect solution, but it is better than nothing.

7. Enable a password manager

People are good at recognizing patterns, but not at randomness. The best password setting is to choose a different random password for each address, but so many passwords cannot be written down, so it is difficult to manage.

For most people, the best approach is to use a password manager that can generate passwords on multiple devices and store them securely. Currently, the more popular ones include 1Password, LastPass, and the open source KeePass.

Many managers offer a free basic plan with upgrades costing less than $80 per year, and they're so easy to use that after just a few weeks you may never want to leave them.

8. Family Planning

If something happens to you one day, how will your family get your Bitcoins? Although this tip is a bit time-consuming to implement, it is worth it.

It should take no more than an hour to make this plan and decide who you want to give the bitcoins to. Write down the instructions and tell your family about your plan.

Remember to consult an attorney to ensure that your plan complies with local laws and will not be modified by the court. If you have a will, power of attorney, or other estate plan, tell your attorney what assets need to be included in the plan.

It is becoming easier and easier to obtain Bitcoin, but it is very difficult to guard against hacker attacks, avoid exchanges that may go bankrupt, and various potential loss risks.

Here are eight tips to help you navigate the new year without worrying about the safety of your Bitcoin, even at its hefty price.