It’s been 10 years already since Bitcoin’s launch in 2009 and during that time, there has been no known case or report of Bitcoin being hacked. Likewise, security flaws that are detected are constantly being fixed. Now, that should clear your doubt about the secured nature of Bitcoin’s software and answer any queries you may have pertaining to the potential hacks of Bitcoin in the future.
On the other hand, you may have heard of hack attempts on the cryptocurrency space, but these are not hacks on Bitcoin itself. They are security breaches on platforms that offer Bitcoin and other cryptocurrencies for trade. Therefore, these are two different things and should not be confused with an attack on the asset.
That being the case, if you’ve purchased Bitcoin (or you’re still uncertain on how to take your first steps, here’s our guide on how to get Bitcoins), the next step is to ensure that the wallet or platform where your funds are stored has the highest level of security. This can be made possible following certain security measures.
Security Measures to Protecting Your Bitcoin
There are several measures that have to be in place in order to ensure that your Bitcoin is as safe as possible. Some of these include:
Downloading Bitcoin Wallets only from Official Sites:
Whatever it takes, download Bitcoin wallets that are highly rated and from the official site itself. For instance, if you settle for Blockchain’s mobile wallet or Coinbase’s wallet, ensure that it is from their website. If the link on the page leads you to Play Store or Apple Store, then it’s good enough. Searching directly on Play store no longer cuts the deal since there are malicious apps impersonating the official ones
Setting up Google Authentication:
Activating Google Authentication on your mobile wallets and accounts on cryptocurrency exchanges will ensure that your account stays safe even if your email and password are phished. Likewise, if your phone number is hijacked through a SIM swap attack, your activation Pin won’t be redirected to a number controlled by a hacker.
Using Cold Store Wallet:
Cold store or offline wallets are not connected to the internet and as such, they are the safest. All you need is hardware such as Ledger or Trevor to store your asset and each time you need to use your funds, you can then transfer it to a hot wallet that is connected to the internet. You can also check out our guide to the best Bitcoin wallet. There’s also the option to store your funds in your hand.
Backing up your Passphrase:
Some cryptocurrency wallets if not all come with a passphrase in order to help you gain access to your account if the private key is lost. What this means is that while your wallet may not be prone to an attack, it is also easy for you to lose access to it permanently if you lose the key. As such, always back up the passphrase to such wallets.
Move your Gains From Exchanges:
Cryptocurrency exchanges like Coinbase are constantly offering rewards to bounty hunters who can discover a bug on their platform in order to tighten their security. On the other hand, cybercrime actors are always looking for loopholes and we’ve seen exchanges like Cryptopia, Coincheck, and MT Gox get hacked.
Likewise, Quadriga CX is currently unable to refund its users’ funds amounting to C$190 million. What are we getting at? To avert any unforeseen circumstances, move your gains or coins from exchanges to offline wallets. Asides from a hack, the exchange could have been using customers funds to cover operational costs and a lot can goo wrong.
These are some of the best practices you have to adhere to as a cryptocurrency investor in order to ensure that you do not lose your hard-earned money. If that’s what you’re out to get, implement some of these security measures today.