Once you start getting involved with Bitcoin, it is paramount to take proper security precautions to ensure your funds are safe at all times. Computer users, who run any Bitcoin wallet software on their machine, are the most vulnerable targets for hackers trying to steal Bitcoins. Luckily for all of us, there are some basic steps users can take to create a far more secure environment.
Securing The Bitcoin Software Client
One of the first security measures to take is creating a passphrase for your Bitcoin software client. Every Bitcoin address is protected with a private key, which is stored in the wallet.dat file on your computer. However, this wallet.dat file can be copied by hackers to another computer, and then imported, including your Bitcoin balance and associated private keys.
What a passphrase does, is add an additional layer of protection on top of the Bitcoin software client itself. You could compare a passphrase to a password, which will need to be entered every time someone wants to move funds from your Bitcoin address(es). Generating a secure passphrase is important, there should be letters, digits and special signs included,