Cases of fraud and system hacks have dogged Bitcoin since its inception. Significant losses arising from these discrepancies have led both the crypto currency developers and owners to devise and strengthen already existing systems in order to ward off possible breaches.
Crypto currencies have been the target of most hacks largely due to their anonymous nature while transacting, making it virtually impossible to prove theft. The fact that crypto currency transactions are irreversible means that once a theft has occurred, the money cannot be reverted to the owner as is the case with other fiat currencies, even if the culprit is discovered.
This article sets out to list a number of ways through which this particular crypto coin can be safeguarded against possible safety breaches.
STORE YOUR WALLET OFFLINE
As a gambler, saving your wallets on any networked device is very dangerous. Wallets should be backed up on offline computers or written down on a piece of paper. Servers are prone to hacks and system breaches from attackers.
Many contracted companies entitled with rights to ensure safety of various crypto coins have had several incidences of system hacks resulting in huge losses. It is therefore prudent to store your wallet in a safe and secure area with restricted access.
USE ADMINISTRATION CONTROLS
In cases where companies have several employees involved in safe keeping and monitoring of systems, it is prudent to assign specific rights to only a few and trusted individuals. The system should also be capable of displaying a user log, which shows the log in times of various users and the tasks performed by said users. The limitation of key administrative rights to a select few individuals prevents possible fraud and employee malpractice from being carried out.
REGULAR SECURITY UPDATES
Cryptolocker is just one of the spy ware tools being used by hackers to access accounts of unsuspecting Bitcoin owners. Various reports show that this particular crypto coin is the most targeted, accounting for almost 20 percent of all online financial related hacks. Through advanced spyware tools, hackers are able to spy on user’s computer keystrokes and collect their private key information that can be used to commit fraud. The simplicity and basic nature of Bitcoin wallets makes them susceptible to breaches from various malware. The storage of crypto currency is also not as intricate and breach proof. Therefore, there is need for crypto coin players to regularly update their safety features to ward off possible attacks.
ENCRYPTION OF YOUR WALLET
Many providers are now offering encryption services for crypto currency owners. Bestcrypt and Diskcryptor are just some of the companies that offer these much needed services. It is recommended that you bolster your device’s access by using these hard-to-crack codes to prevent breaches. These codes should be strong and have a combination of numbers, letters and special characters. The use of upper and lowercase letters is vital. Regular and unscheduled code changes are also advisable.
HAVING MULTIPLE WALLETS
It is advisable that you have several wallets so as to distribute your currencies evenly. Having all your crypto coin in a single wallet places you in a vulnerable position and the risk of you losing all your possessions cannot be over emphasized. Paper wallets can particularly be ideal when kept in a safe and secure environment. It may also be important to point out that your wallet address and password should be kept in different places to prevent possible loss arising from fraud. Having multiple wallets and storing them in networked and unencrypted devices however, is futile.
USE A VIRTUAL PRIVATE NETWORK (VPN)
In case you can’t do without internet connection, it is probably advisable that you seek the services of a VPN service provider. A VPN provides a safe and secure channel through which you can be able to transmit data without external breach. This means that only authorized personnel can access the network and the data cannot be intercepted. Your online activities in regards to financial transactions will therefore be safe, secure and highly confidential.
It is important to note that no single strategy is 100 % efficient and free from hacking. Hackers are always developing new ways of getting through systems and making loot, so a combination of two or more safety measures should be adapted in order to minimize the chances of theft.
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