Cryptocurrency has crept into today’s generation to a profound level. Everybody has started moving into crypto space, be it the millionaire Elon Musk or the famous Indian film star Amitabh Bachchan. The hype regarding cryptocurrency has been growing, and the prices of these digital coins have increased quickly. Although these coins give great returns, some trustworthy bitcoin wallets are vulnerable and can face cyber-attacks anytime.
Chances of Cyber Attacks on Bitcoin Wallets
The rate of cyber criminals in today’s world has increased a lot. These criminals are an expert in taking advantage of the craze that has become an outburst regarding the crypto market. They successfully trick the victims and steal all their digital money. These hackers not only target the people with cryptocurrency but also some crypto exchanges.
Safety of Bitcoin Wallet several elements provide security to Bitcoin wallets from theft. Cryptography prevents unauthorized cryptocurrency creation and transfer, and all the protocols that protect Bitcoin have proven to be quite strong against many hackers, making it a trustworthy bitcoin wallet.
In addition, the Distributive Ledger Technology (DLT) of Bitcoin, which is popularly known as Blockchain, provides a data record of all the transactions a user makes. These records cannot be tampered with by anyone.
However, the strength of these DLTs and blockchains have not proven to be quite powerful in protecting the crypto exchange from the hackers who have made several attempts to take advantage of the vulnerability of these exchanges.
The Crypto Exchanges and Wallets have not been proven strong enough. They do not provide sufficient insurance and security, thus making it a dangerous place to store your digital money.
The price of Bitcoin has increased a lot in the past few years, and with the price increase, the number of viruses designed for stealing money from wallets has also increased. It is nothing surprising as the price of one bitcoin has fluctuated between $29,000 and $63,000.
How to Secure Your Bitcoin Wallets?
Despite all the cyber thefts, these wallets have been trying to make the cryptocurrency wallet more and more secure. As a result, five types of wallets are pretty secure.
1. Software Wallet
Bitcoin wallets are software applications that allow users to hold, spend, and transfer bitcoins. Bitcoin wallets can be downloaded from online stores or created using specialized software.
2. Offline Wallet
Offline wallets are a great way to keep your bitcoins safe and accessible even if you don’t have an internet connection. They’re similar to online wallets, but they’re stored on your computer or phone’s hard drive. It means that if your computer or phone is stolen or lost, the thief won’t be able to access your bitcoins.
3. Hardware Wallet
A hardware wallet is a bitcoin wallet that allows users to store their bitcoins offline on a physical device. Hardware wallets are than software wallets, as the private keys are not accessible online. However, these wallets are also more expensive than software wallets.
4. Paper Wallets
Bitcoin wallets can also be created on a computer using a USB stick or a paper wallet. Paper wallets are generated by printing out the private key and storing the paper wallet in a safe location
5. Multi-signature Wallet
A multi-signature wallet is a digital wallet that requires multiple signatures to spend funds. Bitcoin wallets that employ this feature are sometimes called “multisig” wallets. Multi-signature transactions are more secure than single signature transactions.
Since Crypto-trading is in a high craze nowadays; its vulnerability has also increased significantly. Although there are quite a few trustworthy bitcoin wallets, they are sometimes susceptible to cyber-attacks.