Lately, more and more online attacks are being performed by the cyber criminals, and many different security threats have appeared. News about online thefts, security breaches, data protection, ransomware, and similar things aren’t strange and unfamiliar anymore.
However, as the technology progresses, we continue to use the online services that are often under attack, simply because it’s there, it’s convenient, and that’s what they’re made for. That still doesn’t mean that we should allow the hackers to rob us, so we’ve created a guide that will help you with protecting one of those services – which is your Bitcoin wallet.
Is Bitcoin safe?
When it comes to virtual currencies, Bitcoin is actually as secure as they can get. Despite this, it’s still a regular target for cyber attacks. It recently lost 19,000 BTC after having several wallets compromised. This amount translates to about $5 million, which isn’t a small deal at all. There have been reports of a Trojan called Pony Loader 2.0 that has shown the capability of stealing from wallets if the systems where they are stored are infected. This Trojan has stolen from other cryptocurrencies too, and its most famous victim besides the Bitcoin is Litecoin.
The problem with currencies like Bitcoin is the fact that they can’t be reversed, or undone in case of thefts like this. There’s no authority that can issue such an order, The only time when reversing the payment is even possible is in a case of an error, which is especially important, since it means that the both parties that are connected to the transaction are unknown to one another. Also, the stolen bitcoins can’t be tracked, even though many different techniques have been developed for the purpose of attempting just that.
Now, even though Bitcoin users can remain anonymous since private addresses are made for everyone who uses one of its wallets, the transactions are public, and anyone can see the list of the ones that are made from a certain address. This means that services that can enhance your security are necessary, and for that purpose, services like VPNs or Tor browser are pretty much the best you’ll be able to find.
How to protect your Bitcoin wallet – Hardware Wallet?
If you like using online currencies and you have a Bitcoin wallet, the most sensible thing you can do is to protect is with as much security as you can.
The fact that it’s an online currency and not the piece of paper in your hand doesn’t mean that this form of money is less important, and you don’t want your hard work to go to waste. So follow the next advice, and use them to protect both your money, as well as your identity online.
The best way to protect your Bitcoin is to use a hard wallet like Keepkey. Hardware wallets are small devices without operating systems that store your cryptocurrency through a set of keys and authentication systems. If you haven’t heard of hardware wallets, check out the KeepKey. It’s by FAR the most secure way to lock up your Bitcoin.
The smart use of your Bitcoins
If you wish to protect your Bitcoins, you should first hide your IP address, which is only a first step. It would also be advisable to share your funds to several smaller amounts so that the potential breach wouldn’t be able to take all of your money at the same time. Plus, you can use a Bitcoin client to change your address after every transaction, and it’s definitely a feature that should be used.
Protect your identity
It’s easy to reveal a detail or a piece of information online that could lead to you being robbed, and you should take care and be extra careful about what info you share in public.
Use a strong password
Best passwords are long, random, and strong. Also, you should avoid using the same one on different platforms, since that can lead to having several accounts breached if hackers only learn about one password. There are many password managers that can generate and remember strong passwords so that you don’t have to, and we recommend using them.
Virtual wallet backup
Backup policies have always been an important part of keeping your info secure, especially since there are so many different things that can ruin your data if you’re not careful. It’s the same with Bitcoin and online storages as well. The best thing you can do is to update everything as often as you can, and also to use different media and locations, and always, always use encryption. It will increase your safety exponentially.
Escrow service
Whenever you’re dealing with unknown individuals online, it’s highly advisable to use an escrow service. That way, the person will have to send the bitcoin to the escrow, and they’ll remain there until the person in question waits for the item that they’re buying. On the other hand, the person that’s selling the item knows that the buyer has the money they agreed on and that it’s safely stored until the item finds its way to the buyer. After the item arrives, the buyer simply confirms that they’ve got it, and the escrow service sends the payment to the seller’s account.
Wallet encryption
Wallet encryption is one of the most important measures of protection that you can take. Strong passwords that can’t be easily guessed are the best way to ensure your safety and protection. There are many different encryption tools that you can use in order to protect yourself, and one of our recommendations is DESlock+. The best option would be to encrypt the entire system that has your files.
Use two-factor authentication
You’ve probably heard of the two-factor authentication already since pretty much all of the social networks offer them these days. It’s a good system, and it works. It’s not perfect, and even that can be bypassed, but no solution is perfect. The only thing that you can do is add as many layers of protection as you can, make the job hard for the criminals. Most of them will give up if they have tons of security to deal with, and the prize isn’t that big.
Never use wallets on smartphones
Smartphones are a very convenient way of carrying everything you need, and most of your money, around with you. However, they’re much more vulnerable than your PC, and you should avoid using them for anything connected to money whenever you can. This is important, since many of the reported thefts have occurred because of unprotected phones that were easy to hack, and have in turn offered all the data that the hacker needed to snatch the money from Bitcoin accounts. Also, transactions themselves can be lost or compromised. The best option is to keep the wallet on something that doesn’t have any web connection at all.
Enhance your security even more via VPN
VPN providers are experts when it comes to keeping your data private, and VPNs offer not only the strongest of encryptions but also numerous IP addresses that you can change at any time. This is important and needed so that your sensitive data is always hidden and protected. When it comes to VPNs, we recommend using TorGuard, IPVanish, GhostVPN, or PIA, since those have shown to be among the strongest ones that we were able to find.
Multi-signature addresses
Addresses like these are an excellent way of protection for transactions with high security. Several keys are divided and stored on multiple pieces of equipment, and the potential hacker would have to breach and collect all of them in order to steal your Bitcoins. Simply update all of your systems regularly, and any transaction will be finished long before your systems are compromised and keys get stolen.
Conclusion
Whenever there are businesses conducted online, there are always risks of being compromised, and having your money stolen. As we said already, a perfect solution doesn’t exist. The hackers are crafty, and they fight back against every security measure known to the online community. However, cracking them takes time, and the more you add, the more time the hacker needs to go through all of them, which earns that you have more time to finish your business and the opportunity will pass. So, use these measures, and use them in a smart way. Otherwise, you might become another victim of the hacking attack.
