Bitcoin is an immensely popular cryptocurrency which makes peer-to-peer digital transactions incredibly easy. Unlike the national currencies which are owned by the national banks, these digital currencies are not owned by any one entity and are anonymous. These factors make them feel secure, but of course, there have been numerous instances when users of these cryptocurrencies were subjected to security threats and concerns. For a secure bitcoin investment you should definitely visit coinmarketcap for the understanding of its capitaliztion.
Common Security Attacks
To get a latch onto the different ways in which the security of one’s wallet may be threatened, let’s go through some common attack methods.
- Fake wallets or duped users may be created
- Confidential lock PIN code of phones may be secretly known and stealth of cryptographic keys may be attempted at
- Old password backups may be used to hack the Bitcoin wallet
- Phishing scams have surfaced that pushed illicit trading sites.
- Denial-of-Service, vulnerable transactions, and slow down time are some other forms of attacks.
Having grasped these nuances, let us now look into valuable yet simple measures that are a must to ensure the security of your cryptocurrencies.
Cold storage can be understood as hardware wallets to store currency and private keys offline. This could be a file in a USB drive or a QR code on paper. This method is not as susceptible to hacking as Bitcoin wallets on smartphones or computers, as the data stored in predictable locations by such apps can be traced with Trojan attacks. Private keys can also be further protected by encrypting them, which would render them useless even if they’re discovered.
It is also not a great idea to store huge cryptocurrencies in cold storage. Instead, they could be divided in two parts, a small amount kept online for trading, and the rest in offline storage.