Now that bitcoin is more recognized by the general public it makes sense to learn things like security and best practices. Risk management is slightly different with this new form of digital money. A bank account has its perils of skimming and other dangers. Bitcoin also has its own class of hazards to consider.

Keeping your money in a safe wallet. Bitcoin and other cryptocurrencies are kept in digital wallets. Like pickpockets out in the physical world, there are undesirables that also want to get your money out of your digital wallet. One way to mitigate the risk is to use seed phrases with your digital wallet. This may sound odd, but it works. The now-defunct paper wallet is not to be used as it is now unsafe.

Managing risk by not keeping your Bitcoin in an exchange. For those that remember Mount Gox, this was the first time that a Bitcoin exchange was hacked in a big way. A total of 640 thousand Bitcoins were stolen from this exchange. The exchange lasted for around three to four years and had to announce bankruptcy for this theft. This should have been enough for people to learn from using centralized exchanges with their Bitcoin. Unfortunately, it was not.