Personal Cybersecurity Best Practices for Bitcoiners: A Complete Guide
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Bitcoin gives you freedom, but at the same time, makes you fully responsible for your assets. If someone gets hold of your wallet’s private keys or the recovery phrase, you can lose everything in it. Forever.
This guide explores the best cybersecurity practices for Bitcoiners. In particular, it explains how phishing, malware, and social engineering attacks on Bitcoin wallets work. You’ll also learn how to protect your private keys and recovery phrases as a critical component in securing your Bitcoin assets.
Why Is Personal Cybersecurity A Non-Negotiable for Bitcoiners?
The reason why personal cybersecurity is non-negotiable for bitcoiners is that Bitcoin is decentralized. That means it doesn’t have a customer support line through which you can reach someone with the technical capability to recover access to your bitcoin or to undo a transaction.
It doesn’t matter whether you initiated the transaction or someone else with access to your private keys did. That means you have to take your Bitcoin security seriously, but also your personal cybersecurity
Since Bitcoin transactions are recorded on a public ledger, it’s easy for knowledgeable attackers to identify wallets they can go after. After successfully hacking them, they can easily move the funds even across international borders.
It’s also difficult to establish the real-world identity of the person behind the wallet to which stolen funds are moved. These are some of the reasons why stealing bitcoin can be so attractive to hackers online.
According to the blockchain analysis company Chainalysis, in 2024, fraudsters stole $2.2 billion worth of cryptocurrency, mostly by gaining access to wallets.
Top Cybersecurity Threats Affecting Bitcoiners
Bitcoin is one of the most resilient systems that has ever been built. No one has ever really successfully hacked the Bitcoin network. It’s basically impossible and extremely costly to hack the network itself. It’s this resilience that makes the value it holds attractive even to criminals.
Attackers target Bitcoin users, and the primary goal is to get hold of the private keys or recovery phrases of wallets. They then use this information to steal bitcoin.
The following are the five most notable ways that attackers can steal your private keys or seed phrases:
Phishing
Phishing is a type of fraud where attackers use fake sites, online accounts, and emails to steal login data, including private keys and seed phrases.
Usually, the attacker creates a platform whose user interface looks exactly like a wallet or an exchange that you regularly use. Besides the user interface, the fake platform often has a URL address that at a glance looks like the genuine one, but when looked at carefully, it often has a slight difference.
They can share with you the link to this website or application through email, Discord, or Telegram, and if you aren’t careful to realize it is not the genuine one, you input your logins, and they can capture that data and use it on your actual account or wallet.
To avoid phishing, never enter your keys on unfamiliar sites, never click links in messages, and always check website URL addresses with a trusted verifier before logging in. It also helps to avoid connecting to browser extensions you can’t verify.
Malware
Malware is a program that can be remotely installed on your device to collect data, including logins, private keys, and seed phrases.
The malicious software works quietly and collects this data through capturing keystrokes, screenshots, and reading through files stored on your device.
In some instances, such programs can alter and change wallet addresses when you transact, so that you end up sending your bitcoin to an address you did not intend.
To protect your devices, use the most recent version of critical software, including browsers and operating systems.
Also, avoid storing sensitive information such as seed phrases on a device connected to the internet or in cloud storage. Record your seed phrases on paper cards or metal plates that you store securely.
Social Engineering
Social engineering is a process employed by an attacker to trick you into willingly handing over your keys to them. The scammer may pose as tech support, a community admin, or even a stranger who cares for your well-being and that of your assets.
The Social engineering process may come in the form of messages letting you know that you need to verify your seed phrase or update your wallet to a newer version. These messages are often delivered to you through social media or messaging apps that are seemingly official.
To protect yourself, the rule is simple: never accept any help with managing your password, private keys, or seed phrases from anyone, especially people whose help you didn't seek.
Also, no legit exchange or wallet ever asks for your private keys or seed phrase. If someone asks for this information, it’s almost certainly a scam.
SIM Swapping
SIM swap is the theft of your phone number by someone who registers it on a SIM card they control. The attacker basically tricks your mobile provider into transferring your number to them.
This gives them access to your SMS, including 2FA codes and password reset links. Often, SIM swap attacks happen without your knowledge.
To a large extent, you may not be able to protect yourself from SIM swap because much of the trick is done on the phone service provider. Nevertheless, you can set a PIN or passphrase with your mobile provider to block unauthorized SIM transfers.
Additionally, you should avoid using SMS-based 2FA and switch to or use it alongside TOTP apps like Google Authenticator.
Unsecure Private Key Management
Often, Bitcoin losses happen not due to hacking but because of the mishandling of private keys.
For example, people often take screenshots of their seed phrase, save them in phone notes, email them to themselves, or upload them to the cloud. It all seems convenient until a device gets infected or the data leaks.
Secure storage must be offline, and in the form of securely stored paper cards or metal plate backups in multiple copies. Never keep keys on internet-connected devices, especially when the file name is telling. For example, a file named “Financial Report.xlsx” is easy for malware to take note of.
If you're unsure of how to set up secure storage for your private keys and seed phrases, contact The Bitcoin Way. We guide Bitcoiners with wallet setups, managing private keys and seed phrases, and putting a Bitcoin wallet recovery strategy in place.
Personal Cybersecurity Best Practices All Bitcoiners Should Follow
You don’t need to be a security expert to protect your bitcoin. You just need to embrace a few personal cybersecurity practices with attention to detail and consistency.
Create Strong Passwords and Enable 2FA
You should create passwords that are difficult for anyone to guess, even when they know a lot about you. A strong password is random, unique, and long. It should have letters, symbols, and numbers.
It also helps a great deal when you don’t use the same password for multiple platforms. If the same password is used in multiple places, a compromise of one account means a compromise of all.
Other practices you should adopt when it comes to passwords include storing them in a reliable manager and enabling two-factor authentication, especially using TOTP apps or hardware keys instead of SMS codes.
Update Your OS and Browser
Hackers exploit outdated operating systems, browsers, and extensions. You should ensure that any device you use for Bitcoin, whether a desktop, phone, browser, wallet, or password manager, has its core software always up to date.
To avoid using an older version of a software when a new one exists, consider enabling automatic updates. Also, uninstall any suspicious extensions and pay close attention to browser and wallet plugin versions, as they are common entry points for attacks.
Use Cold Storage to Store Your Bitcoin
Wallets connected to the internet (hot wallets) are always exposed to remote threats. For long-term storage, use cold storage wallets or hardware wallets.
These devices protect your private keys even if your computer is compromised. That is because they are designed to sign transactions offline and therefore don’t reveal the keys.
Watch Out for Phishing Attempts
Phishing is the most common method of stealing bitcoin. Attackers create fake websites, extensions, support forms, and emails to trick you into entering your seed phrase or private keys so that they can harvest them. These links are often sent to you through Discord, Telegram, email, and search ads.
To protect yourself from phishing attacks, always take care copying and pasting wallet and exchange addresses, check domains for character spoofing, avoid clicking links in suspicious messages, and never enter private data outside your wallet.
Use Reputable Non-KYC Exchanges
Exchanges with mandatory KYC collect your data, including your passport information, addresses, and email. If that data leaks, you lose your privacy and face risks like phishing and hacking.
Whenever possible, use reliable platforms that let you trade without revealing information about your identity.
Only Use Non-Custodial Wallets
Your assets should always be under your sole control. If a platform such as an exchange holds your keys, your assets are not in a wallet but with a bank. That means a hack, system failure, or regulatory action can cut off your access.
Non-custodial wallets allow you to self-custody your bitcoin. In particular, you must never store large sums on an exchange or any other platform where you relinquish control over your assets.
Regularly Back Up Your Wallet
Make several offline copies of your seed phrase and store them in separate secure places.
The seed phrase should be recorded on paper or metal plates and kept in safes or safe deposit boxes. Never store backups digitally or in the cloud.
Avoid Public WiFi Connections
Open WiFi networks are prime targets for data theft. Hackers set up fake access points in cafes, hotels, and airports to capture logins, passwords, and seed phrases.
Using these networks to access your wallet is a risk never worth taking. Use a trusted VPN and avoid entering personal data if no other option exists. It's better to wait than to risk losing your money.
Monitor Your Wallet Activity
Monitor your wallet activity by checking login history, signed transactions, and setting changes.
Turn on transaction alerts to spot unauthorized activity quickly. If something seems off, disconnect the device, move your funds to a new address, and investigate how access was gained.
Enhance Your Personal Cybersecurity With The Bitcoin Way
The Bitcoin Way can help you assess and strengthen your personal cybersecurity at every level. Our team can audit your wallet setup, guide you to set up secure cold storage, and put a reliable wallet recovery strategy in place.
FAQ
What are the best personal cybersecurity practices for Bitcoiners?
Store the bulk of your Bitcoin in cold storage, use unique and complex passwords, secure accounts with 2FA (not SMS), and keep all devices and apps up to date. Don’t store keys online or rely on cloud backups. If you're unsure about your setup, get an audit from a reputable Bitcoin security consulting firm like The Bitcoin Way.
What are the basic practices of cybersecurity for Bitcoiners?
Keep your system, wallet, browser, and extensions up to date. Most importantly, reduce your digital footprint. The less information about you and your assets online, the less likely you are to attract fraudsters, scammers, and hackers. So, make your online privacy a priority if you want to stay safer online.