With more power comes more responsibility

secure your bitcoins

As your own bank, you are responsible for your bitcoins. A reddit user came out on the popular social media platform, claiming to have been victimized by the scourge of cybercrime which has plagued the bitcoin economy. According to the bitcoin public ledger, block chain, the victim lost around 40.5 bitcoins, worth roughly $14,860 at the time of the transaction.

The recent incident reflects the recurring nature of the crime afflicting the bitcoin community. Just a few days prior a different exploit was found where a rogue tor node hijacked blockchain.info users’ login credentials through https redirection. However, it wouldn’t be fair to completely blame to technology for the lapse of security. When one wishes to attain the benefits associated with digital currencies, i.e. anonymity, more control over your money, etc. the individual and or organization are ultimately choosing to become their own bank. Henceforth, are responsible to ensure the safety of their holdings.

In this article, we intend to provide information relating to the security measures that should be taken to ensure the safety of your digital currencies.

Examining the Lapse in Security

According to the information provided by the victim, there are a few different theories as to how the theft was committed. We will be examining each and every possibility and provide the best possible measures to prevent any such untoward incidents in the future.

  1. The hacker could have gotten access to the network or computer via TeamViewer, a popular remote access and support software which the victim was using. Remote access allows access to a network or computer via the internet.
  1. The victim of the crime confessed to have reused the password at least once. Large networks have been compromised in the past and passwords have been leaked, reusing a password can expose an individual to unnecessary risks.
  1. The bitcoins were held on Bitcoin Qt, a computer based bitcoin wallet. Bitcoins are not supposed to be stored on the computer which is connected to the internet.

Security Solutions

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The technology of bitcoin itself is not prone to theft, but rather the inability of the people to properly secure it. The bitcoin community is developing every single day to provide simpler and safer solutions to bitcoin usage. However, it is the responsibility of the holder to exercise due diligence to ensure the safety of his or her wealth.

  • Since no computer is ever safe while connected to the internet, cold storages are recommended for the safe storage of bitcoins. Cold storage means, storing bitcoins on a computer which will never be connected to the internet. Furthermore, paper wallets and hardware wallets are also available as an added layer of security.
  • Passwords should not be reused at any cost. As a matter of fact, passwords shouldn’t even be something which can make sense, for example, catcherintherye22541. Random passwords should be generated to minimize the possibility of forced entry.
  • It’s important to ensure that all backups of the bitcoin wallet(s) are securely managed and encrypted. Properly securing the wallet yet failing to secure the backup can also result in an unfortunate event.
  • Ensure that your computers are not infected with malicious software. Malicious software can allow the hacker to gain administrative access of the system.

Following these few security tips, individuals can ensure the safety of their digitals currencies. Failure to do can and will result in theft.

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