Bitcoin is a powerful financial settlement system because of a strong and secure blockchain technology-based foundation. But as it is said – A chain is only strong as its weakest link.
You as a user also contribute to Bitcoin’s overall strength and security. But if you are not careful about the proper storage of your BTC funds, your bitcoins could become someone else’s.
Only with adequate safety and security of your bitcoin wallet, you can truly be in control of your money. Here’s how you can keep your BTC wallet safe.
Practice Online Security Religiously
Bitcoins are secured by an SHA-256 hash algorithm but that doesn’t mean that they can’t be stolen because of how you store them. Just like your social media accounts, PC and bank accounts, your BTC wallets are prone to hacking/phishing attempts.
Hackers, scammers and other cybercriminals try different methods to convince you to give up your bitcoins. Sometimes they pose as one of your acquaintances or someone you trust.
Then they convince you to share your BTC funds. Sometimes they lure you into a trap by making you download so-called genuine applications. Else they just pick up your email, cell phone numbers, and other pieces of information right from the internet.
You must be aware of the tricks employed by these online robbers. At WazirX, we do everything we can to keep your crypto funds safe, but here are a few things that we recommend for you:
- Create strong passwords for your account(s). This is the most important step. Create strong passwords that include numbers, characters, capital letters, and symbols.
- Do NOT share your passwords, do not share your OTPs and do not save them in your email accounts.
- Check the official URL and the lock symbol while accessing the exchange website.
- Don’t fall for scammers in Telegram groups or any other website. Anyone asking for funds, passwords, or OTP online is probably a scammer.
- Never share your private keys or account information on mail, chat, or any social media sites.
- Use 2-factor authentication (2FA)
Using 2-Factor Authentication is probably the most important thing to do. If you haven’t enabled 2FA, your crypto is at risk.
Backup Your Bitcoin Wallet
You must always remember to encrypt your bitcoin wallet and create a backup of the seed/recovery phrase and store it in a safe place. This will help you recover your funds in an event of theft of your computer/smartphone.
Also, it is important to keep in mind that single storage points are bad for security. You should not store your bitcoin wallet backup in a single location. Consider using different storage options like USB keys, papers, and CDs.
If you are a daily bitcoin trader, you need to backup your wallet on a regular basis. This will ensure that all your recent change addresses and all new BTC addresses that you created are included in your backup.
Enable Offline Transaction Signing For Your Offline BTC Wallet
Offline wallets or cold wallets provide optimum security for stored BTC funds. But using a cold/offline wallet in addition to backups and encryption can level up things. Here’s how:
Imagine two computers sharing some parts of the same offline bitcoin wallet that you have. Disconnect the first one from any internet based networks.
Designate it as the computer that ‘actually’ has your wallet and has authority to sign transactions. Connect the second computer to the internet. It must only have a watching wallet with the access to create only unsigned transactions. Now:
- Create a new bitcoin transaction on your online computer and save it on a USB drive
- Sign the transaction with your offline computer
- Send the signed transaction with your online computer
As your online computer cannot sign transactions, it cannot be used to withdraw any bitcoin funds if it is compromised. Bitcoin wallet security just got leveled up good!
Update Your Wallet
It seems inconsequential but apparently isn’t. Updating your bitcoin wallet software on a periodic basis can go a long way in ensuring the safety and security of your stored BTC funds.
Also in this case of a computer and smartphone-based bitcoin wallet (like the official WazirX exchange wallet), it is also important to keep all other applications and software updated. To ensure a safe environment for your BTC wallet.
Consider Activating Multisig Feature
Bitcoin is probably the only asset that allows a multiple transaction approval feature. This means that BTC transactions can happen only if more than one individuals sign them.
Suppose you have a significant bitcoin stash that is known to other members of your family/organization. Through the multi-signature feature, you all can have access to the wallet/storage with the exception of allowing a withdrawal only if the majority of members sign the transaction.
Utilize a Separate Wallet For Daily Trades
We emphasized the need to back up your bitcoin wallet regularly in case you engage in daily BTC trades. However, it is better if you just use a separate wallet altogether for the same.
You can trade with one wallet(s) and HODL the rest of your BTC on another.
How to Buy Bitcoins (BTC) With INR in India?
To buy bitcoin through WazirX, you need to register on the platform first, then finish a super quick KYC process and finally deposit funds for the purchase. Here’s how it goes:
Step 1: Account Creation
- Download the WazirX app or visit the website. Then hit the Sign Up button
- Fill in your email address (one that you use frequently), and your desired password
- Click on the Terms of Service checkbox, but go through it once before checking
- Then press the Sign Up button
- You will be sent a verification email after hitting the sign-up button. If you have received it, click on Verify Email to complete the process.. If you haven’t, check your spam folder. Or hit Resend Here. On successful verification, you should see this message:
Securing Your Account
For security purposes, we highly recommend enabling 2-factor authentication (2FA). You can do so by downloading the Google Authenticator app and connecting it to your account.
The last stage in the account set up process is KYC verification. Select your country from the list:
Then verify your KYC and finish the process. After that, you are all set to buy BTC with INR from WazirX!
Step 2: Depositing Funds
You can deposit INR funds from your bank account to your WazirX account via UPI/IMPS/NEFT/RTGS.
Just submit details like bank name, account number, IFSC code, etc of the bank account with which you wish to transact, and then you are good to go.
In case the INR deposit is rejected, check out the WazirX support page for such issues.
Depositing cryptocurrencies into your WazirX account, either from your wallet or another exchange is an effortless process. It’s also free – with no fees charged on any deposit!
Start by obtaining your deposit address from your WazirX wallet. Then, share this address on the ‘Send Address’ section of your other wallet for transferring your cryptocurrencies.
For more details, check out the WazirX Support page on depositing cryptocurrencies.
Step 3: Buy Bitcoin with Indian Rupees
With all the necessary steps covered, you are now ready to buy bitcoin with your deposited funds. Here’s the process:
Log on to the WazirX app or website to view the latest BTC/INR prices.
On the app, press the BTC/INR price ticker. After that, scroll down a bit, and you will find the BUY/SELL button amongst the ‘Charts’, ‘Orders’, ‘Trades’, and ‘My Orders’ options at the bottom.
Enter the INR amount with which you want to buy bitcoin. Note that this amount should be less than or equal to the INR funds deposited in your WazirX account.
Hit BUY, and wait for the order to execute.
Once the transaction is executed, you should find the bitcoin bought added to your WazirX wallet.
Also you can download the app and Start Trading Now!
Android App – Bitcoin Exchange
iOS App – WazirX