How to protect your digital currency

First there was online banking. Then paypal. Now, there is Bitcoin. It is a brave new world, but with Bitcoin exchange rates so high that coins are more precious than to lose.

This is where Bitcoin Wallet comes in. A wallet is a program, application or service that holds coins, keeps them safe and makes it easy to backup, spend or accept.

With Bitcoin, the wallet does not just provide security. It provides bookkeeping, portability and simple ways to give and receive cash.

What is the Bitcoin Portfolio?

It's rather like an online bank account, but even easier to use.

Each Bitcoin is a unique solution to a mathematical problem, consisting of a short string of text representing the figure. Let's say you give someone a single currency or currency fractions - text string changes they enter their wallet, and once the World Wide Web validates the transaction, it invalidates the original currency and becomes a new currency for you.

Bitcoin Wallet is a cat for someone who sends money, and your wallet is just an address. All you need to know is where to send your coins. The QR code to the right of this image is another way to represent the address on the left. When you conduct face-to-face transactions, the sender simply snaps on the QR code rather than exchanging e-mail messages.

Since coins are just characters, they can be stored in a text file. But this will not be smart.

They can be seen by anyone who accesses your computer and without the benefits of a wallet, they will be hard to spend.

NB. It's a good idea to make sure you really complain about the world of Bitcoins if you hold large sums. The reason his real world is that banks admit it is too risky, Khao, to try to secure your home enough to save your life. Securing Your Computer But Hard In The Bitcoin World You do not have a bank as a buffer to rely on.

Types of portfolios

    Local - Installed on your device

    Online - Made with your store or Bitcoin exchange

Installing your wallet on your smartphone or computer allows you to send and receive Bitcoins as easily as exchanging emails - you need to address another wallet only. But if you want to buy Bitcoins with the local currency, or "cash out", you need to do so via online currency exchange, which will include an online wallet with a subscription.

In both cases, enhance security by having both local wallets and online learning to transfer funds among them.

Local Portfolio

A wallet installed on your mobile device makes for fast transactions, but phones can be lost and laptops can be hacked.

It's a good idea to transfer any incoming coins instantly to an offline device, an encrypted cloud service, or to cash.

There is a difference between transferring money and backing up your wallet - always doing both! With the application linked to your NAS (network attached storage) or online service, backup is a no-brainer.

Online wallet

Bitcoin Governor: Digital Currency Protection Your online wallets hold money subscribed to their computers, and accounts are backed up and instantly available from anywhere in the world.

However, Bitcoin online exchanges are still immature and many have suffered from power outages or irregularities. In a study of 40 markets, 18 of them have failed, leaving customers bankrupt!

Choose Bitcoin Exchange

Bitcoin exchanges collect sensitive personal data, even prompts access to bank accounts and credit reports. Carefully scrutinize their reputation, focusing on these things:

    Highly rated with a few complaints

    Stop rare or delay transactions

    They do not (a) provide a special key under joint control or (b) the money exposed to the Internet is small compared to the reserves currently available

Note that (a) and (b) do not meet. That is, if you control the keys, the contents of the online wallet will be exposed to the Internet. It does not offer a great risk if you sweep the assets in the wallet currently or encrypted storage cloud after each transaction.

7 Security Tips Bitcoin Wallet

    Never store your wallet ID with your password.

    Start key transactions (including cash exchange) from your computer - no one that is shared - or those that boots as a custom virtual machine

    Use your phone wallet to get small deals when traveling. Just as with a real wallet, you only carry cash required for the expected transactions. By its very nature mobile devices are constantly exposed to threats from outside.

    If you must enter a big deal away from home, use your phone to access your wallet online. It can be unsafe to access the online wallet from a computer that you do not have.

    Limit the wallets connected to the Internet to a minimum of reserves that you absolutely must leave online to get ready.

    Backup your wallet after each transaction to store encrypted or offline device, and then sweep to another wallet.

 (Do this even for transactions with your primary portfolio  it adds a layer of protection by re-currency and switching to a wallet that is not shared with the buyer or seller.)

    There is a difference between authentication and encryption used. It is not enough that your backup device or service requires a login - it must also be encrypted. If you use the backup cloud service,

 see if they encrypt from end to end. This way, your data can not be viewed by the same backup service, by anyone in between, 

or by others sharing wifi or mobile data service, so your cash is shut down from the moment it leaves the device until you restore Data at some point in the future