Can Bitcoin Be Hacked?

April 3rd, 2018

Investors from around the globe are beginning to swarm to buy cryptocurrencies, this is making many governments and authorities around different countries begin to take severe regulations. The recent success of Bitcoin has fueled the rise of legions of followers from different places around the globe. Many new cryptocurrencies have been launched since seeing this trend and based on this rise of followers, several startups are hitting the market. Nonetheless, with all the fuss surrounding Bitcoin, investors in many places are still not sure about the security of this new digital currency. Can Bitcoin be hacked? How do they need to protect their million dollar investments from hackers? These are some of the common questions asked by many investors. Some recent Bitcoin hacking news has also increased concerns among digital currency users. Before you start drawing any conclusion, it is important to know a few things about Bitcoin security.

Bitcoin and Security

Bitcoin was launched in 2009 as a decentralized currency, which means that it would not be regulated or overseen by any one government, administrator, or bank. Peer to peer transactions have fueled the rise of the cryptocurrency world and among all other popular digital currencies, Bitcoin is leading the race. The blockchain is a public ledger which is used to verify and record all digital currency transactions.

Bitcoin security has always been a fundamental concern for many investors since its early days. Experts believe the blockchain technology is itself a very powerful and unique system that supports the Bitcoin currency system. The blockchain is constantly reviewed by digital currency users from around the world, hacking this system is very rare. Recent news of a Bitcoin hack is nothing but online exchanges that have been compromised. Bitcoin currency is tough to hack, but that doesn’t mean it’s impossible. Bitcoin does come with potential security risks at different stages of the trading process. Before you start investing, some important things needs to be properly considered.

Wallets and Transaction Process

Bitcoins are always held in digital wallets and are traded through different digital currency exchanges such as Bitcoin of America, CoinATMFinder, Coinbase, etc. With these sites, there may be various security risks which are tough to predict. Developers are always coming up with constant updates which will enhance digital wallet security, but there are also people who are looking to illegally swipe tokens and coins. Selecting the right digital wallet is important, check every detail and review them online before you use digital wallets.

In a Bitcoin transaction process, a two-factor identification is commonly used for security measures. Having security for all transactions linked to a cell phone number or an email address means that any individual with access to these components can easily authenticate transactions. If a hacker can determine some of your personal information related to the account, he or she may very easily infiltrate transactions in any space regardless. This is why it is important that digital currency users be careful about their personal information, often hackers collect this information and easily steal online currencies.

Be Careful of Scams and Frauds

With the growing popularity of this digital currency, there is an increase in the number of online fraud, scams, and hacking. Many cases have come to light, where individual investors have lost a lot of money on a frequent basis. Such cases are concerning for modern-day, individual investors. Part of the issue is that the technology and its systems are new. The all-new concept of cryptocurrencies such as Bitcoin, is exciting and profitable in the long run, but on the other side, there are some security loopholes which need to be corrected. Investing in these digital currencies is proving to be quite beneficial, but all Bitcoin investors are advised to take proper precautions at the very start to protect their holdings. Remember no banking method is completely safe, by following some security measures you can minimize the chances of getting targeted by hackers.

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