To encrypt or install security app like Prey?
The Cerberus app allows you to remotely track and wipe your Android device, as well as a lot more.

If you have root, you can install it as a system app, and it will survive a wipe - which is really handy, it can also be hidden from the app drawer.

I believe that this app will be the most use to you.

Please not that I am not affiliated with Cerberus at all, and am just a customer.