Source: Cointelegraph Original: "{title}"
Bitcoin and its price have once again become the focus of mainstream media, and as the price of Bitcoin approaches $100,000, interest in the world's first cryptocurrency may further intensify.
In addition to investors' daily obsession with the price of Bitcoin (BTC) and the potential establishment of a Bitcoin strategic reserve by elected President Donald Trump, a more pressing issue should be assessing whether one's operational security meets the standards.
In episode 48 of Cointelegraph's "Decentralized" podcast, host Ray Salmond discusses best practices for ensuring the security of a Bitcoin portfolio and ways to increase investments while saving on taxes with Joe Burnett, Director of Market Research at Unchained.
While crypto hardware wallets are far better than keeping Bitcoin on exchanges or in software wallets, there is still a risk of asset leakage if someone gains access to the seed address.
Burnett recommends adopting a multi-signature setup to eliminate this single point of failure, as generating a transaction requires multiple signatures.
Related: What is a seed phrase, and why is it important?
Burnett explains that in a collaborative custody solution like Unchained, Bitcoin holders create a three-key multi-signature vault, where investors retain two keys, and Unchained holds one as a backup.
In this case, moving Bitcoin requires two keys, and Unchained only holds one of the three keys, ultimately preventing Unchained from moving the client's Bitcoin.
To hear more of Burnett's conversation with Decentralized—including his outlook on the future price of Bitcoin—tune in to the full episode on Cointelegraph's Podcasts page, Apple Podcasts, or Spotify. Don't forget to check out Cointelegraph's other shows!
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This article is for general information purposes only and is not intended and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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