So what happens if your PC HDD brakes or something else bad happens to it? Will you lose your money ? Well, If you didn't backed up your wallet.dat file - you are in trouble.
The block chain (the book with transactions) can be re-downloaded by wallet program once you have an internet connection and another PC of repaired yours. So there is no real problem with block chain, because it is kept on many PC’s all over the world. The danger is in your wallet file. This is something you have to first encrypt and second backup in several locations. Why is that?
Keep your antivirus updated
In my explanation about cryptocurrencies I used names such as mr.X , mr.Y etc. But in reality the transactions are bounded not to names, but to specific wallets addresses, which are unique for each wallet. If you have access to wallet file - you have a control over its money. This is why many hackers are hunting these files and this is why you have to keep the file safe, as your own wallet.
Back up your wallet
A lot could happen to your computer. Fortunately because wallet is a file you can create multiple copies of it easily and store it in as many different places as possible. But if it gets to wrong hands , which is quite possible it should be at least encrypted. If you have a big amount of coins you have to consider dividing it among the different wallets just to keep it save and distribute risks. I guess in our every day life rich people have multiple bank accounts to hold their money in as well, so this is not something new.
Change wallets time to time.
Another way of keeping money safe is to create new wallet after sometime and transfer the money there. This could guarantee that if somebody have stollen you wallet(which you probably don’t ever know, until you money is gone) and tries to break the encryption - he could probably succeed in that in some long time. So taking this possibility into account transferring you money to new wallets time to time would guarantee that when this guy gets to your old wallet there will be nothing there.
Things to do:
Useful links:
Keep your antivirus updated
In my explanation about cryptocurrencies I used names such as mr.X , mr.Y etc. But in reality the transactions are bounded not to names, but to specific wallets addresses, which are unique for each wallet. If you have access to wallet file - you have a control over its money. This is why many hackers are hunting these files and this is why you have to keep the file safe, as your own wallet.
Back up your wallet
A lot could happen to your computer. Fortunately because wallet is a file you can create multiple copies of it easily and store it in as many different places as possible. But if it gets to wrong hands , which is quite possible it should be at least encrypted. If you have a big amount of coins you have to consider dividing it among the different wallets just to keep it save and distribute risks. I guess in our every day life rich people have multiple bank accounts to hold their money in as well, so this is not something new.
Change wallets time to time.
Another way of keeping money safe is to create new wallet after sometime and transfer the money there. This could guarantee that if somebody have stollen you wallet(which you probably don’t ever know, until you money is gone) and tries to break the encryption - he could probably succeed in that in some long time. So taking this possibility into account transferring you money to new wallets time to time would guarantee that when this guy gets to your old wallet there will be nothing there.
Things to do:
- Check your system for viruses and malware. Remove anything suspicious.
- Encrypt your wallet with strong password
- Backup your wallet.dat file to several different and possibly independent places - several flash drives, another PC, etc.
Useful links: