Security

Security for your Bitcoin wallet shares some similarities to how we take normal security precautions for our real-world wallets. Since your digital wallets are connected to the Internet, there are additional security precautions that must be observed to protect and preserve your Bitcoin. Given the meteoric rise in value of Bitcoin, cybercriminals have great incentives to create malware or viruses to steal digital wallets.

In the real world, most people do not carry huge amounts of cash in their pockets. We should have the same consideration for a Bitcoin wallet.

There’s no reason you cannot possess multiple wallets. In fact, with Armory you can have multiple wallets at the same time.

For example, you can have one wallet for everyday use. You can keep a small amount of coins or fractions of coins in that wallet. Then, you can have a different wallet where you would hold a large chunk of your Bitcoins for safekeeping or perhaps larger scale purchases. You can add different wallets for different purposes, and each wallet can have its own separate password. So if someone steals your everyday-use wallet, your wallet with your larger holdings won’t be at risk because it has a different password.