1. Use Hardware Wallet
There are many types of Bitcoin wallets currently available that you can choose from. They are categorized into 2 main categories, ‘Hot’ and ‘Cold’,
Hot Wallets:
Bitcoin Wallets that are online and connected to the internet are referred to as ‘Hot’ wallets. These wallets are generally the least safe since they are most susceptible to hacks. They can be on both phones or desktop.
Cold Wallets:
Wallets that are offline and not connected to the internet are referred to as cold wallets. Most hardware wallets such as Trezor and Ledger fall into this category. They are considered one of the safest ways to store your bitcoin. Since they are not connected to the internet hackers cannot easily access your private keys and steal your Bitcoin.
If you are looking for security it is best to stick with hardware wallets.
2. Never Store your Bitcoin on Exchanges
Given exchanges are the prime target of most hackers it is always advised to use exchanges only for making the trade but never for storing. Once the desired trade is made, withdraw your bitcoin and any other crypto and keep it in your personal wallet.
3. Store your Private Keys/Wallet Seed Offline and Never Share Them
There is a very common saying in the bitcoin world:
Not your Keys, Not your Bitcoin
This basically means that if you do not own the private keys you don’t own that bitcoin. The proof of ownership with Bitcoin lies in the private keys of your wallet/address, thus keeping it safe is of utmost importance.
Make sure that your private keys are securely stored offline. This is the most secure way to protect your wallet from hackers.
The same goes for your Wallet Seed. Never store your wallet seed online, in case of a cyber-attack you risk exposing your seed to the hacker if they are stored online.
4. Keep Backup
While storing your private keys/Seed for your wallet, it is always a good idea to keep a backup. If by any chance you lose access to your wallet and your private keys, this backup is the only way you can recover your bitcoin.
5. Use separate wallets for daily use and savings
While storing bitcoin, it is never a good idea to store all your bitcoin at one place, especially when they are meant for ‘various purposes’. What this means is that, if you have bitcoin for several different purposes such as, daily use, savings, trading, it is never advised to store them together in one address.
Always separate your bitcoin into different wallets based on their purpose. Even if one of your wallets gets compromised at least the rest of your bitcoin will be safe.
6. Never click or access unverified bitcoin links
This goes without saying but, avoid clicking any unverified links claiming to be investment opportunities, bitcoin giveaways, or anything similar asking for your private keys or asking you to send bitcoin.
If you are unsure about what the particular bitcoin-related message is about it is always better to leave it alone.