As bitcoin becomes an increasingly popular form of payment, ecommerce businesses may choose to accept this digital currency as a form of payment for products. Bitcoin is a relatively safe method of conducting transactions, but as with any currency, business owners need to take measures to protect their assets and prevent theft. Since the value of bitcoin is volatile, thieves could wait until the currency's value is particularly high, then hack into your bitcoin wallet, causing significant revenue loss.
Here are a few considerations for keeping your bitcoin wallet safe:
While transactions are anonymous, every bitcoin transaction is recorded on a public protocol that lists the IP address associated with each payment. To protect yourself, it's a good idea to use a new address each time you make a payment with your wallet. Use a solution like Tor to hide your IP address or choose a wallet that allows you to change your address with each transaction.
A backup of your wallet can protect your funds in case something happens, such as a computer failure. It's important to back up data frequently to ensure you retain all recent transactions.
Store owners should also use encryption to protect their wallets. A strong password can prevent another person from logging into the wallet and using it without permission. Use a longer password with a combination of capital letters, numbers and symbols that would be difficult to compromise. You should also encrypt any online backups you make of your bitcoin wallet.
Hackers often exploit known weaknesses in a software system. For this reason, it's important to download any patches or updates to the bitcoin software you use. Keeping the most updated version of the software ensures you use the most secure system available.
Any time information is in an online, it is susceptible to hackers. This means offline storage is the safest option for storing bitcoins. Offline bitcoin storage is often referred to as cold storage. Many bitcoin wallets offer cold storage. This means the wallet is saved to an external harddrive and stored in a physical locker or safety deposit box.
Don't store a significant amount of bitcoins in your wallet at one time. Business owners should store only what they need for transactions and keep the remaining bitcoins in a more secure environment, such as cold storage.
If bitcoins are part of your profits, it's crucial to protect these assets through encryption and backup in addition to maintaining other best practices for bitcoin security. Always take measures to protect your privacy and security online.