How Safe is the Bitcoin Wallet: Everything You Need to Know
Keeping your Bitcoins safe is really important! How safe is the Bitcoin wallet? Can you trust the Bitcoin wallet? Read this article and find out!
Bitcoin, Ethereum, and other virtual currencies are hot topics at the moment, however, they have been getting a negative press lately as the news is dominated with stories about security issues, theft, hacks, and cybercriminal.
Bitcoin has had many obstacles before. Its association with black markets, for instance, Silk Road which was shut down by the authorities 5 years ago (in 2013) still continues. If you have been following the news you will notice that its market price has been unstable as well.
As this wasn’t enough, Bitcoin has a huge malware problem.
According to one research, more than 6 million detections of malware were determined that could harm the Bitcoin wallet. This research also noted the rise of new types of malware – one that downloads software to mine Bitcoins and one that steals from wallets.
There is absolutely no doubt that as Bitcoins becomes more and more popular, the cybercriminals will focus their efforts on these specific currency platforms.
Taking all of this information in mind, you probably are worried about the safety of your Bitcoins.
When it comes to keeping your Bitcoins safe, you can apply lots of similar principles to Bitcoin as you do with your paper money, however, keep in mind that the risks that come with cryptocurrencies are much greater. If you accidentally lose your hard drive with Bitcoins on it, that’s it, you’ve lost everything. The penalties for getting it wrong are higher with Bitcoin than if you misplace your credit or debit card.
You need to be careful, that’s all. For instance, experts are recommending not to put all your eggs in one basket, in this case, in one exchange. If you do so, the risks of getting your Bitcoins stolen or hacked are much greater.
Even many Bitcoin exchanges tell you not to pull all of your Bitcoins in their exchange, as, at the end of the day, they are not banks. According to the president of Toronto Bitcoin security, Michael Perklin, Bitcoin shares lots of properties with money management. Let’s face it – you wouldn’t walk around with all of your money in your pocket as you probably store them in the bank or in an investment fund. So, leaving all of your Bitcoins in one online wallet is not a good idea.
Perklin says that the best way for people to protect from hacking and stealing is to have multiple addresses. Using only a limited number of addresses or keeping too many funds in one address are some of the biggest mistakes you could make. Another reason why it is smart to have more addresses is because of increased privacy.
What if something goes wrong? What should you do?
If you are checking your account and you notice that your balance has been compromised, what should you do? If you have troubles with your provider and currently they are managing your funds, you should consider changing them as soon as possible.
It is really easy for you to create a new Bitcoin address, another wallet or another service and then send all of your funds to this new wallet. If you think that the attack is still possible, by the time they get to your account, you have already moved your coins to a new address.
Regardless of the type of Bitcoin wallet you are using, as long as you are careful, you have nothing to worry about.
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