Security Best Practices
Crypto theft is at an all-time high. Learn how to protect your Bitcoin with battle-tested security measures used by professionals.
Security Levels
Essential
Minimum security everyone should implement
Recommended
Strong protection for serious investors
Advanced
Maximum security for large holdings
Password Security
Use a Password Manager
A password manager generates and stores unique, complex passwords for every account. This is the single most important security tool you can use.
✅ Recommended Managers
- Bitwarden - Free, open source
- 1Password - Excellent family plans
- KeePassXC - Fully offline option
❌ Never Do This
- Reuse passwords across sites
- Use simple passwords like "Bitcoin123"
- Store passwords in browser only
- Write passwords on sticky notes
Master Password Rules
Your password manager's master password should be:
- ✓ Long: At least 16 characters, ideally 20+
- ✓ Memorable: Use a passphrase like "correct-horse-battery-staple-42"
- ✓ Unique: Never used anywhere else, ever
- ✓ Backed up: Write it down and store securely offline
Two-Factor Authentication (2FA)
2FA adds a second layer of security beyond your password. Even if someone steals your password, they can't access your account without the second factor.
SMS 2FA
Codes sent via text message
NOT RECOMMENDEDVulnerable to SIM swap attacks
Authenticator App
Time-based codes from an app
GOODUse Authy or Google Authenticator
Hardware Key
Physical device like YubiKey
BESTPhishing-proof, most secure
⚠️ Critical: Backup Your 2FA
When setting up 2FA, you'll receive backup codes. Store these offline in a secure location. If you lose your phone and don't have backup codes, you could permanently lose access to your accounts.
Hardware Security Keys
Hardware security keys are physical devices that provide the strongest form of 2FA. They're immune to phishing attacks because they verify you're on the legitimate website.
Recommended Keys
- ● YubiKey 5 Series - Most widely supported
- ● Thetis FIDO2 - Budget-friendly option
- ● Google Titan - Simple to use
Best Practices
- ✓ Buy two keys - keep one as backup
- ✓ Store backup key in a different location
- ✓ Register both keys to all important accounts
Phishing Protection
🎣 Phishing is the #1 Attack Vector
Most crypto theft happens through phishing - fake websites and emails that trick you into entering your credentials or seed phrase.
🚨 Red Flags
- ● Urgent messages demanding immediate action
- ● Emails asking you to "verify" your account
- ● URLs with typos (gernini.com vs gemini.com)
- ● Anyone asking for your seed phrase
- ● "Support" reaching out to you first
- ● Promises of free Bitcoin or airdrops
✅ Safe Practices
- ● Bookmark official exchange URLs
- ● Always check the URL before logging in
- ● Use password manager autofill (won't fill on fake sites)
- ● Never click links in emails - type URLs manually
- ● Verify sender email addresses carefully
- ● When in doubt, contact support directly
💡 Pro Tip: The Seed Phrase Rule
No legitimate service will EVER ask for your seed phrase. Not customer support, not "wallet verification," not anyone. If anyone asks for your seed phrase, it's 100% a scam. Your seed phrase should only be entered into your hardware wallet during recovery.
Device Security
💻 Computer Security
- ✓ Keep operating system updated
- ✓ Use full-disk encryption (BitLocker/FileVault)
- ✓ Install reputable antivirus software
- ✓ Don't install pirated software
- ✓ Use a VPN on public WiFi
- ✓ Enable firewall
📱 Mobile Security
- ✓ Use strong PIN/biometrics
- ✓ Keep phone OS updated
- ✓ Only install apps from official stores
- ✓ Review app permissions regularly
- ✓ Enable remote wipe capability
- ✓ Don't jailbreak/root your device
Email Security
Your email is the master key to most accounts. If hackers get your email, they can reset passwords everywhere. Protect it accordingly.
Email Best Practices
- ✓ Use a dedicated email for crypto accounts
- ✓ Enable 2FA on your email account
- ✓ Use a secure provider (ProtonMail, Gmail with Advanced Protection)
- ✓ Don't use email for sensitive communications
- ✓ Never share your crypto email publicly
- ✓ Check for unauthorized access regularly
💡 Pro Tip: Email Aliases
Use unique email aliases for each exchange (e.g., gemini.12345@yourdomain.com). If one gets compromised or sold, you'll know exactly where the leak came from.
Withdrawal Security
Exchange Security Features
Most reputable exchanges offer these security features. Enable all of them:
Withdrawal Delays
24-72 hour delay for new withdrawal addresses. Gives you time to react if compromised.
Address Whitelisting
Only allow withdrawals to pre-approved addresses. New addresses require waiting period.
Withdrawal Limits
Set daily/weekly withdrawal limits. Limits damage if account is compromised.
Withdrawal Confirmations
Require email or 2FA confirmation for every withdrawal.
Advanced Security
For larger holdings or maximum security, consider these advanced measures:
🔐 Multi-Signature Wallets
Require multiple keys to authorize transactions. Common setups:
- 2-of-3: Need 2 of 3 keys to spend (recommended)
- 3-of-5: Higher security for institutions
Services: Casa, Unchained Capital, or DIY with Electrum
🏔️ Geographic Distribution
Store backup seeds in multiple physical locations:
- Home safe
- Bank safety deposit box
- Trusted family member's location
- Use metal seed storage (fire/water resistant)
🎭 Privacy Measures
Reduce your attack surface:
- Never share how much Bitcoin you own
- Use a separate identity for crypto activities
- Don't use crypto-related usernames on social media
- Be cautious at meetups and conferences
🧪 Dedicated Hardware
Use dedicated devices for crypto:
- Dedicated laptop for crypto transactions only
- Never install unnecessary software on it
- Consider air-gapped setup for signing
- Use Linux for better security
Security Checklist
Print this checklist and work through it. Check off each item as you complete it.
Essential (Do Today)
- Install password manager
- Enable 2FA on email
- Enable 2FA on exchanges
- Update all passwords to unique ones
- Backup 2FA recovery codes
Recommended (This Week)
- Purchase hardware wallet
- Order hardware security key
- Enable withdrawal whitelisting
- Set up dedicated crypto email
- Review device security settings
Need Help Securing Your Bitcoin?
Book a free consultation and we'll help you implement these security practices step by step.
Questions? Email us at hello@bitcoinadvantage.com
