Over the years, Bitcoin’s popularity has increased immensely. It made people question whether they should invest in Bitcoin or not because Bitcoin has a good future and most people believe that it will be in our lives in the future. But how is the security of Bitcoin?
Bitcoin is using Cryptography to control transfers of cryptocurrencies. On top of this, it also contains the coins in the making. It uses Blockchain as the distributed ledger technology, and this gives the owner 100% correct transaction data with 0 failure. However, DLT (Distributed Ledger Technology), which is probably the most secure technology currently, can not stop hackers from exploiting the system within the crypto exchanges.
Bitcoin common security issues
As for any other Ledger system, Bitcoin’s system is also exploitable. Meaning by exploiting phishing attacks, fake websites, and malware methods used to exploit the users within the system.
Even though Bitcoin’s system is one of the safest and known as anonymous, is it really true that you are anonymous while using bitcoin? Because you are not that anonymous while transferring BTC to someone else, and if someone knows how much you transferred, they can easily track you. Bitcoin’s Blockchain is public and can be seen by anyone, and this means if someone knows how much money you transferred, they can trace back your steps and find what are you up to if you are doing something illegal.
If you have a hardware wallet installed on your mobile phone or your computer, always remember to backup your wallet password. Because when you lose this password, there is no way you can reach your BTC holdings. Make sure you have a backup and ensure your password is strong enough to prevent hackers from acquiring your hardware wallet.
Bitcoin is a good investment, and it proved this over the years. But BTC is really volatile, and you should always keep track of your Bitcoin investment. It’s pretty common that when the crypto market becomes volatile, bitcoin can lose too much value or gain too much value. This is why if you have an investment in bitcoin, always keep your eyes on it to prevent losing money.