Crypto

How Can Bitcoin Investors Avoid Private Key Hackers

Published

6 years ago

Lu Welton

With the increasing popularity of cryptocurrency throughout the world, how to protect my bitcoin has probably become the most important question these days. In general, bitcoin is always considered safer than the traditional currency.

Making an online money transaction from bank to bank is always considered as risky. Making payments online through credit cards has also been identified as highly risky. On a sharp contrast, the online transaction of cryptocurrency, which is exclusively a form of digital currency, is considered as risk-free. However, nothing is completely secured.

Cryptocurrency holders should adhere to some simple techniques to keep your money safe. Basically, bitcoin is stored in a person’s digital wallet. Security for this digital wallet should be top notch.

If hackers get access to the wallet, storing your bitcoin, you could possibly lose all your money. It is to be remembered that once bitcoin transactions are made, they cannot be undone.

So, here are some security tips for you to protect your bitcoin or other cryptocurrencies.

How Do Bitcoin Wallets work?

In order to enhance the security of your bitcoin wallet, you need to understand the mechanism of the wallet. Many cryptocurrency holders do not properly understand how their crypto wallets work.

Bitcoin uses blockchain technology for encryption and storage information. It is not a physical commodity. It is basically an address on the blockchain, and this address possesses information related to your bitcoin.

Every cryptocurrency holders possess a unique key which has been used for unlocking certain bitcoin locations. The key is important and thus it should be protected in a reliable digital wallet.

So, in a way it has to be stated that wallets do not store your crypto coins, they store the unique key that helps you to access your bitcoin.

Having a Backup Is Important

Regular backup of your bitcoin wallets will make sure that your bitcoin keys are safely stored. Generally, wallet backup files can be created in “.dat” format. Regular backup is required.

To ensure added security for your bitcoin keys, you must keep the backup data in different locations. For example, data stored in one computer may be hacked or spied.

Thus, storing backup data in different computers will ensure better security. All your bitcoin information could not be hacked, even though security of data on a few computers has been compromised.
Keep Your Wallet Software Updated

The software of your digital wallet, storing bitcoin keys, should be updated regularly. Updating the software has a lot of benefits. The first thing is obviously security. With the advent of time, different sorts of security threats appear.

To deal with new challenges, developers of the wallet software make certain changes to the software. Security has been enhanced and new security features are also introduced to counter the potential security threats. All these things will be available with the wallets of the users when they update their software. If you do not update, the new security features will not be there on your wallet.

Not just security features, new functional aspects are added to the wallets through the updates. As a result, these wallets become even more user-friendly. So, handling crypto coins will get easier. Nevertheless, security will be optimum. There is no way hackers would get a trace to your cryptocurrency keys when you update the wallet software frequently.
Choose Two Layers Based Security

Most of the cryptocurrency wallets offers two layers based security. At the first layer, you need to enter your login details. The login credentials generally consist of two things and they are username and password. It is important to keep the username and password remembered correctly.

You also need to change your password periodically. This will enhance security for your wallet account. The next layer of your wallet login should be verification of the login attempt through text message. At your registered phone number, you shall get a one-time password. This password should be entered to continue login. If this key is not entered properly, the login attempt will fail.

Since users have to pass two layers of security for such login process, this has been noted as a two-tier login. Most of the bitcoin wallets feature such login process. It ensures better security for the bitcoin keys.
Use Multiple Signatures

For bitcoin security, multiple signatures are getting popular quite rapidly. Multi-signature is a concept that involves approval of several people before finalizing a transaction. For example, both seller and buyers have to approve a transaction before it is done with bitcoin.

As a result, security becomes optimum. It does not give permission to a single server to conduct the transactions. This mode of transaction is quite popular among the cryptocurrency users. They search for the wallets which approve this type of transaction.
Check Bitcoin Wallet Encryption Process

Wallet information encryption is important for protecting the data stored in wallets. Different wallet developers follow different encryption methods. You need to choose a wallet that gives standardized encryption for your wallet.

If you do not get properly encrypted wallets, it will get difficult for you to maintain optimum security for your bitcoin keys. They could be stolen and misused. Different wallets offer different layers of encryption.

Before conducting a transaction, security checking has been done. A transaction will only be done, when all these security checking processes are completed.
Using Cold Storage for Storing Bitcoin Information

In order to store your Bitcoin information, you need to use cold storage devices. That means a portable USB drive is a good device where you can store your data. Pen drives or external drives are the examples of such storage units.

Having the information stored in the computer is not a safe thing. Any malware or potential security threats can get a trace to your bitcoin information. As a result, there is a chance of your crypto coins to get stolen.

Conclusion

Bitcoin is the new way of managing wealth. It is convenient and relatively more secure than conventional currency. Digital transaction of bitcoin is safer, though not fully protected from hacking related issues.

To keep your cryptocurrency keys safe, following the methods that are mentioned above is important.

Breakthroughs

4 Easy Steps To Making Your Own Cryptocurrency

Published

6 years ago

Lu Welton

Crypto

3 Key Government Monetary Policies That May Threaten Your Cryptocurrency

Published

6 years ago

Lu Welton

Crypto

Secret Crypto Underground Methods To Securely Hold And Protect Wealth

Published

6 years ago

Lu Welton

Wealth management is an important part of managing a business. For wealth management, different techniques or methods have been adopted. Among those techniques, converting a portion of wealth into bitcoin or crypto coins could be useful as well as beneficial in several ways.

In this piece of writing, those benefits will be discussed. Understanding the benefits of converting business wealth into cryptocurrency will help in the wealth management process immensely. Discussions related to crypto coins is trending these days.

People are getting more curious about them and it is the right time for the business owners to gather better knowledge of it so that certain benefits can be attained for the purpose of business wealth management.

A Secured Method of Keeping or Holding Money

Bitcoin is based on blockchain open source framework, which delivers excellent security to this virtual currency. The most important feature of blockchain is that once a transaction has been registered it cannot be undone or modified. As a result, it is protected from the threats that intend to change transaction information and divert the fund to another account.

Keeping money in the bank and using that for online payments is highly insecure for this reason. With the advent of time, traditional currency is facing both virtual and physical threats.

Handling traditional money through the internet has plenty of risks. We often hear about malware attacks on the bank servers and various virtual wallets. We also hear about security attacks on the web server of a business house or organization. Such security breaches can lead to loss of wealth.

Undoubtedly, such wealth loss is not at all small. If hackers get a trace of your business bank accounts, your business would end up losing significant amount of money.

On the other hand, blockchain based cryptocurrency is secured. It is almost impossible to conduct a financial scam or mischievous activity with bitcoin or other crypto coins.

Top Benefits of Holding Bitcoin

Apart from giving top-notch security to the wealth, investing into bitcoin has several other benefits and those benefits are important to be known for business owners. Holding crypto coins can help a business in different ways.

Here are those benefits:

• Easy to Convert:

The process of converting money into the cryptocurrency is simple and highly convenient. It takes only a few seconds. There is no extra charge to be paid for the transaction process. It is to be reminded that once converted into bitcoin, the transaction cannot be reversed. Hence, think twice or even more, before converting money into crypto coins.

• Easy to Manage:

Managing cryptocurrency is simple. You shall have a digital wallet, which will be secured with a unique code. This code should be kept confidential for the security of your crypto money stock.

Typically, the crypto wallet comes with a lot of wealth management and planning feature. It can produce graphs of your expenses and help you to get transaction data in different file formats. No charges are there to be paid for managing or maintaining these virtual crypto wallets.

• Protected from Scam:

In small to large business houses, several financial scams take place with various mischievous activities in various departments. Such scams cannot be done with bitcoin or cryptocurrency. Even if there is intent for the scam it can be identified easily, and that is why wealth management is a seamless affair when you are using crypto coins.

• No Loss of Wealth due to Inflation:

Global inflation can cause loss of wealth for an organization. However, cryptocurrency is inflation protected. Global economic inflation does not harm the value of crypto coins. As a result, wealth loss does not take place.

Easy to Invest in Trading

Business owners often have interest towards various kinds of trading options, including stock and currency trading. It is easy to invest in forex trading or commodity trading with bitcoin. Many Forex trading platforms support cryptocurrency and they also encourage the investors to earn money in cryptocurrency.

So, trading with business wealth gets easier with crypto coins. They are extremely useful and always effective in terms of commodity trading or other forms of trading.

Bitcoin Payments to Employees

Businesses, holding wealth in crypto money, can easily disburse employee payments or salaries in Bitcoin. This is a secure way of making salary transaction. The records stay intact on the blockchain database.

The transactions can be downloaded at any time. Nevertheless, salary disbursement will be seamless and instant. It would take hardly a few seconds to disburse the salary. Observing the popularity of Bitcoin or other forms of crypto coins, it is not an exaggeration to claim that employees would also like to get their payments on cryptocurrency. It will help them to get secured payments.

Bitcoin for Business Investments

Business wealth has been kept in different forms, not just in physical or virtual money. Many business owners hold wealth through property investment. On the other hand, money is required for buying business assets as well as types of machinery.

Thankfully, cryptocurrency has been accepted quite extensively by various sellers these days. Reputed real estate groups or agencies always accept payments in crypto coins. Nevertheless, many business assets, as well as machineries, can easily be purchased with the help of the Bitcoin. Thus, holding wealth in cryptocurrency is always helpful as well as useful.

Easy to Trade Internationally

In most of the countries, Bitcoin has been legalized. As a result, international trading has become easier with Bitcoin. It is easier to send money overseas, and no hefty charges are required to be paid for such payments.

Dealing with traditional currency in case of international transactions is always daunting. You need to show the reasons for a transaction to the bank. Upon the bank’s approval, you need to undergo a few steps to finally get your money transaction done. It involves some charges that the bank takes a transaction fee. With crypto coins, there is no such hassle involved in international payments.

The bottom line is that cryptocurrency is the “next big thing” in the domain of global economy. A business can stay ahead of its competitors and attain better wealth management with crypto coin investment.