The nature of cybersecurity is such that failure in a single subsystem leads to the downfall of
the entire system. Such is the case with Bitcoin security. Although Bitcoin security is
formidable and reliable, there exist some flaws that affect the overall credibility of Bitcoin.
The Bitcoin wallet is responsible for many of these shortcomings, which is why securing it is
of such importance. Only by protecting the Bitcoin wallet can you enjoy the benefits of
Bitcoin without worry or inconvenience. The question is; how do you safeguard your Bitcoin
wallet in the first place?
the entire system. Such is the case with Bitcoin security. Although Bitcoin security is
formidable and reliable, there exist some flaws that affect the overall credibility of Bitcoin.
The Bitcoin wallet is responsible for many of these shortcomings, which is why securing it is
of such importance. Only by protecting the Bitcoin wallet can you enjoy the benefits of
Bitcoin without worry or inconvenience. The question is; how do you safeguard your Bitcoin
wallet in the first place?
1;Hide your transactions
Many people desire anonymity when they use Bitcoin for their
transactions. Thanks to the fact that no personal information is required,
there are those that assume the ensuing anonymity is absolute. However, the
reality is that it is possible to determine a person’s identity by tracking and
finding correlations between the IP address, Bitcoin address, and transactions.Therefore, hiding your transactions brings you a step closer to
achieving absolute anonymity. There are plenty of ways of obscuring Bitcoin
transactions, so it is up to you to decide which is most
convenient and useful to you. For instance, you could opt for Altcoins instead
of an individual exchange. That said, we recommend using Coinjoin, which joins
many transactions into one thereby making it harder to find correlations in the
transactions.
2:Deploy effective
cybersecurity measures
Effective cybersecurity is dependent on various factors; Key among them are the
cybersecurity tools you use. Achieving effective cybersecurity with a single cybersecurity
tool is impossible. Even then, relying on multiple tools without the knowledge on how to they
work together is equally ill-advisable.
Take for instance Tor and VPN. Used separately, they are both essential cybersecurity tools
with the former guaranteeing anonymity and the latter privacy and network security. Used
together, they become invaluable since they reinforce each other’s strengths while
eliminating the weaknesses. Even so, you should use Tor over VPN as opposed to VPN over
Tor since the former combination achieves the best result. Privacy and anonymity are some
of the primary shortcomings of the Bitcoin wallet and using Tor over VPN easily resolves
that.
cybersecurity tools you use. Achieving effective cybersecurity with a single cybersecurity
tool is impossible. Even then, relying on multiple tools without the knowledge on how to they
work together is equally ill-advisable.
Take for instance Tor and VPN. Used separately, they are both essential cybersecurity tools
with the former guaranteeing anonymity and the latter privacy and network security. Used
together, they become invaluable since they reinforce each other’s strengths while
eliminating the weaknesses. Even so, you should use Tor over VPN as opposed to VPN over
Tor since the former combination achieves the best result. Privacy and anonymity are some
of the primary shortcomings of the Bitcoin wallet and using Tor over VPN easily resolves
that.
3: Encrypt your wallet
Encrypting your wallet allows you to encode and add a much-needed extra layer of security
to your wallet. Bitcoin wallets come with an encryption option, which is turned off by
default. After turning on the Bitcoin wallet’s native encryption, you should find a way to add
an extra layer of encryption. For instance, you could hide the app in an encrypted file vault to
place an auxiliary layer of encryption on the wallet.
Encrypting your wallet allows you to encode and add a much-needed extra layer of security
to your wallet. Bitcoin wallets come with an encryption option, which is turned off by
default. After turning on the Bitcoin wallet’s native encryption, you should find a way to add
an extra layer of encryption. For instance, you could hide the app in an encrypted file vault to
place an auxiliary layer of encryption on the wallet.
4: Safeguard your Private Key
Each Bitcoin wallet has only one Private Key, which is used to access the wallet and doubles
as proof of ownership of a Bitcoin wallet and the Bitcoin contained within. Losing your
Private Key is similar to losing your Bitcoin, which is why its security is essential. Hackers
always aim for your Private Key, and they will use any means at their disposal to get it,
including using malware such as keyloggers or social engineering techniques.
Safeguarding your Private Key is thus more about outsmarting the attackers. For instance,
you could store a digital copy of the key instead of an analog copy. In so doing, you avoid
having to type out the key at every instance, which minimizes the risk of falling victim to a
keylogger. Additionally, you could store the digital copy in an encrypted file vault to avoid it
being sniffed out by malware if they get past you using social engineering techniques. Aside
from that, installing an antivirus should help eliminate the risk of malware.
Each Bitcoin wallet has only one Private Key, which is used to access the wallet and doubles
as proof of ownership of a Bitcoin wallet and the Bitcoin contained within. Losing your
Private Key is similar to losing your Bitcoin, which is why its security is essential. Hackers
always aim for your Private Key, and they will use any means at their disposal to get it,
including using malware such as keyloggers or social engineering techniques.
Safeguarding your Private Key is thus more about outsmarting the attackers. For instance,
you could store a digital copy of the key instead of an analog copy. In so doing, you avoid
having to type out the key at every instance, which minimizes the risk of falling victim to a
keylogger. Additionally, you could store the digital copy in an encrypted file vault to avoid it
being sniffed out by malware if they get past you using social engineering techniques. Aside
from that, installing an antivirus should help eliminate the risk of malware.
5:Increase your
knowledge and vigilance
Often, mistakes that could lead to a breach in security stem
from ignorance and laxity. Since it is virtually impossible to hack into the
Blockchain, hackers have no option but to target the Bitcoin wallet. However,
sometimes the only options available for the hacker is to target the individual
and not the devices in what is known as social engineering. If you’re ignorant
of social engineering and
how to prevent it, you create an opening for the hacker to
steal your Private Key and by extension, your Bitcoin. Aside from preventing
social engineering, increasing your knowledge and vigilance improves your
understanding of the shortcomings of Bitcoin security and how to overcome them.
The Takeaway
The techniques highlighted in this article might sound
straightforward, but this is just a tip of the iceberg, which is yet another
reason you should increase your knowledge on the issue. Keep in mind that the
choices you make will affect the overall quality of your security. For
instance, your choice of VPN or antivirus all affect the protection you get.
Moreover, these are a few of the available methods you could secure your
Bitcoin wallet.
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