The concept of bitcoin security brings up a number of questions, and we’ve got an answer for them all.
Playing it safe with bitcoin is simple in practice, but fairly convoluted in concept. There are a number of important things to keep in mind when it comes to bitcoin security. From how the cryptocurrency functions, to how you need to function in order to keep it as secure as possible.
Investors know that bitcoin can be a thrill, but so much of that comes directly from market volatility. While anyone you plays with investments will be quick to tell you that a volatile market is never a safe bet, any seasoned gambler knows you have to bet big to win big. Keep your investment safe by staying up to date with the latest bitcoin news, with huge cryptocurrency news sites like Coinfomania and Bitcoin News, keeping us up-to-date. For everything else, follow these guidelines.
Is Bitcoin Safe?
Bitcoin is an incredibly safe commodity in and of itself. The cryptocurrency is specifically structured to be ultra-secure and not subject to outside manipulations. In fact, many believe that Bitcoin is the most secure asset in the crypto industry because of the following reasons.
Bitcoin is what’s considered “pseudo-anonymous.” This means that while people can figure out ways to unveil your identity, it’s not the easiest thing to discover. That being said, the system is deeply encrypted, particularly the ledger. This means that any transaction made with bitcoin is not only logged, but it’s also unchangeable. The system uses long strings of letters and numbers known as “keys” or “addresses” to identify users instead of their names or account numbers. Further increasing the coins’ inherent stability.
Publicly Distributed Ledgers
The ledger system is not only fully accessible to the public, but it’s also created by the public. Through this type of transactional transparency, the entire system becomes incredibly difficult to succumb to fraud. Once bitcoins are purchased, traded, or sold, there is a log of that transaction that is created, verified, and time-stamped. This log can never be changed or altered, making the world of bitcoin one of the safest there is. So long as you keep your coins from becoming vulnerable, the system will keep your stash safe.
With bitcoin, there is no middleman. No intermediary. No entity to change rules, create fees or get in the way of how you want to use your bitcoin. Not only that, but the bitcoin universe is run on thousands upon thousands of computers worldwide, making it impossible to destroy the entire system at any one time. If something goes wrong with any of the computers on the network- another one picks up the slack without a blip. This also means that your funds are fully global, and not subject to pesky exchange fees.
Getting Started on Bitcoin
While the bitcoin system comes with its own built-in security measures, these things don’t actually keep your personal stash safe from hacks or scams, nor does it perfectly protect your personal identity. These are some things users can do to protect their bitcoin.
Purchasing bitcoin is generally the quickest way to get your identity tied to your bitcoin bulk. The best way to get around the KYC practices of the big bitcoin exchanges is to purchase your coins from a peer-to-peer exchange network or a Bitcoin ATM. Using either of these methods generally keeps purchasers anonymous and won’t require bank details, registration, or confirmation of identity. However, you can also safely purchase Bitcoin using SEPA and Bank Cards (USD/EUR).
Choosing the right BTC wallets is the ultimate practice of bitcoin security. Using a combination of both hot and cold storage, hardware and online wallets can keep your identity out of other’s hands. These practices can also help keep your balances under wraps as well. Make sure to create a backup of any wallet you have and always keep your private keys securely stored offline just that you don’t end up like Peter Schiff who complained of losing access to his Bitcoin.
So you’ve got safe wallets, excellent sources for bitcoin news, and know how the system works, use these guidelines to really wrap up any loose ends that may put your bitcoin in jeopardy.
VPN, TOR Network, and Linux
Use a VPN, Linux operating system, or the TOR network to fully keep your identifiable presence at a minimum. Or go the full mile and use all three. These systems are known for their strong feelings towards protecting anonymity and security.
Always backup your wallet. And keep a backup of that backup. Protect your backups in the same way that you would protect your normal accounts and never store a backup online. Paper wallets or USBs are both excellent ways to back up your wallets in a way that is easy to store and isn’t directly associated with your existing hardware. Meaning that if anything were to happen to your existing system, your backup is still perfectly safe.
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