Bitcoin incurs promising security protocols alongside a full-proof consensus mechanism and peer-to-peer ecosystem. Unfortunately, despite bitcoin's promising secure technology, scams and hacks are pretty standard in the cryptocurrency market.
Bitcoin does not lack security, but the same platforms at which bitcoin is being traded and stored do, resulting in a higher risk. There are a lot of scam sites, so if you are planning to start bitcoin trading, it is better to use a trusted website.
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| Follow These Tips for Empowering Your Bitcoin Wallet Security!: eAskme |
In light of recent news regarding the theft of $530 million worth of cryptocurrency from Coincheck, bitcoin's market capitalization saw an 8% drop in value.
However, the price may have stabilized since Coincheck's security breach.
To prevent future cryptocurrency thefts and blockchain security breaches, users will have to not only understand what makes bitcoin so secure but also take action on how they store and use their bitcoins.
So let's talk about some tips on avoiding future security breaches and preventing hackers from stealing your bitcoin wallets.
1. Take more responsibility for your wallet security:
Most users tend to leave their bitcoin wallets open and unsealed to the public, thus making them susceptible to theft.
It is because it's easy to use a wallet that's available in a desktop application.
As a result, it's easy for people to use the same computer when they access their bitcoin wallets online at exchanges and online wallet stores.
Therefore, users must take full responsibility for their bitcoin wallets' security by ensuring a password is set and remain strong enough not to be hacked.
2. Keep your bitcoins offline in cold storage or hardware wallet:
Storing bitcoin on your computer is one of the riskiest forms of wallet.
For example, if your computer is infected with ransomware or a hacker gains access to it, you could lose all your bitcoins.
As a result, if you have large amounts of bitcoin and do not plan on spending them anytime soon, you should consider storing it in cold storage or a more secure wallet such as a hardware wallet.
3. Use 2-factor authentication (2fa) and Google Authenticator:
Using 2-factor authentication helps immensely to keep your bitcoins safe from hackers.
2-factor authentication is not present in every e-wallet; make sure you opt for the wallet incurring this feature.
Bitcoin wallets having robust security protocols must be your preference, then you can seek advanced wallet features.
For example, most online exchanges, like Coinbase, are safe and reputable when handling cryptocurrencies but require 2fa for added security.
4. Make sure you are using the most secure bitcoin wallet:
Bitcoin wallets that have not been updated to support new protocols, such as BIP-39, will leave users susceptible to security breaches.
A strong password is always a good start in protecting your bitcoins from malicious hackers, and in this case, the best option would be to use a Ledger Nano S hardware wallet or an Electrum wallet.
5. Understand how bitcoin transactions work:
Bitcoin transactions work through what's known as public key cryptography, and that's why each transaction will have its key pair.
It is because bitcoin operates as a decentralized currency system with no central server or bank that keeps track of funds.
To send or receive bitcoins, users will have to prove their ownership of funds through the use of a public key and a private key.
As a result, security breaches from hacking can occur when the bitcoin address is not changed or hacked through Trojans.
6. Make a Backup of your bitcoin wallet:
One of the most critical ways to protect your bitcoin wallets is to make a backup of your wallets.
Although this may be a bit more advanced for beginners, storing a backup in encrypted files or on an external hard drive is best.
7. Do not leave ample bitcoins in an online or mobile wallet:
Do not leave large amounts of bitcoin in wallets; instead, use cold storage.
Leaving large amounts of cryptocurrency in hot wallets can be risky because they are connected to the internet and, therefore, susceptible to more hacks that could lead to stolen bitcoins.
Instead, improve bitcoin wallet security by ensuring you use the most secure wallet.
8. Physical copy of the private keys:
If you are storing large amounts of bitcoins, you should store a physical copy of the private keys instead of a computer-backed-up wallet.
With a physical copy on hand, you will always be able to access your bitcoins if necessary.
If someone were to hack your computer or obtain your login and password, the hacker would gain access to all the bitcoins in your wallet.
In summary, bitcoin wallets are secure if you fail to follow these tips or use an insecure wallet.
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