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7 Security Tips for Startup Bitcoin Trading

Nowadays the important data of companies is stored virtually. Over the past year, the virtually stored data has faced several threats as some people try to get hold of it and exploit it. 

Wednesday December 21, 2016,

4 min Read

Nowadays the important data of companies is stored virtually. Over the past year, the virtually stored data has faced several threats as some people try to get hold of it and exploit it. The data has also faced threats as the commercial transactions take place. To keep the data and finances of the company safe it is important that the security measures are improved with time.

One of the protocols used for virtual currency transactions is known as Bitcoin. Because of its good performance it has become pretty popular among the industries. Bitcoin has also suffered some attacks and in order to make sure that privacy settings are perfect it is important that some extra precautions are taken so that the virtual wallet and your identity are kept private and safe from theft.

Here are some tips that will help in ensuring the safety of the transactions and identity.

Benefits of using versatile bitcoin client:

To make sure that your information has the privacy you need to make sure that your IP address is not visible to other people. To hide the IP address you can use a client which allows you to use a different address for each transaction. It also allows you to make separate transactions. The transactions can be made into different wallets. The best way of bitcoin usage is to make sure that you have a wallet for small day to day transactions.

Keeping the identity safe:

Sharing the information is a big deal so it is important that you are extra careful before sharing the information in any public spaces. You should not share all of the information on just any web. Make sure that you do not share the information voluntarily or unsuspectingly. Try to be careful while sharing information about the identity along with bitcoin address.

Using the escrow service:

Whenever you are looking to make the transaction and you are unaware of the identity of the person or organization on the other side. In such situations, you can make use of the escrow service. It allows a person to send the payment to the escrow service and wait to receive the item that they have invested in. During the transaction, the seller knows that the money is safe with the escrow service. Once the item is received by the buyer, they send a notification to the escrow service and complete the payment.

Adding encryption for safety:

When the wallet is stored online, adding encryption can enhance its security. You should make sure that the password you are using is secure. Always choose a strong password because it makes it difficult for anyone to crack it. There are several tools available which can help in encrypting the files. Encryption is essential especially if there is any sensitive information in them. If you could encrypt the whole system or userspace instead of just the files then it will be better.

Remember the authentication factor:

It is important to be extra careful when it comes to online storage services. You should never forget to choose processes that are reliable. Every system has vulnerabilities so you have to keep that in mind. to take care of any vulnerabilities you should opt for a two-factor authentication process.

Advantages of multi-signature addresses:

When you are making corporate transactions or the transactions which need high security then you should choose to use addresses which are multi-signature. The process requires using more than one key. The keys are mostly stored in a different equipment which is under the protection of authorized staff.

Make sure the system is up to date:

Nothing is perfect so any application that you are using has some faults. Updating the system regularly is important because it ensures that the application’s security improves. You constantly need to update the operating system and Bitcoin clients. The virtual wallets can be affected by any type of malware so you should make sure that regular scans are run on the system.

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