Can Bitcoin Be Stolen?

April 4th, 2018

With the use of Bitcoin increasing around the world, many digital currency users are beginning to ask if “Bitcoin can be stolen?” These concerns are understandable as everyone wants to make sure that their Bitcoins are secure.

To be precise, yes, Bitcoins can be stolen and there are some examples where it was stolen in the past. This doesn’t mean that this currency system is insecure. Experts say there are numerous ways of stealing Bitcoins and it is important to be careful when you are using or storing Bitcoins.

To begin with, you need to understand why Bitcoins are stolen. There are lots of reasons, but one of the main reasons is that Bitcoins can be used in a manner that grants the user some level of anonymity. On top of that, Bitcoin transactions are irreversible and instant, this makes this currency a prime target for hackers or online thieves. Over the past few years, there have been many advancements taking place for Bitcoin wallet security, using a digital wallet can help you secure digital currencies. Before randomly selecting a wallet make sure you compare all its features and select the best one for your need.

How Can Bitcoin Technology Protect your Funds?

Bitcoin can be considered money that comes in its very own deposit box. Now the question that arises is whether you want to use that “box” yourself or entrust another third party to do it on your behalf. In most cases, investors opt for the latter option-storing and buying Bitcoin with services like Coinbase. This is no doubt a smart idea, as these services rely on the security features that are built into Bitcoin. The other option is to acquire a digital wallet yourself. This requires you keep track of your public key and private key. Think of the public key as a deposit slot for your deposit box, where you can receive Bitcoin from anyone and think of the private key as a secret way of opening the box that only you should know.

Bitcoin payment systems are designed in such a way that it is almost impossible for someone to guess the private key. This means that no individual person or entity can ever hack into your safety deposit box or wallet. What this also means that the only way of betting Bitcoin stolen is to trick digital currency users or any third party that you rely on. Here are some common examples how that can happen.

A Thief Obtains A Password For Your Account

If you are using online exchange services like Coinbase, you don’t have to worry about remembering the private and public key. It’s more than likely that the online banking service will have a place where the user can use their login ID and password. This makes the service easy for thieves to rob you, just by obtaining your password. Like any other online banking hacks, this account can also be accessed in few simple steps. Once they are into your Coinbase account, they can easily access all of your Bitcoin funds.

Your Private Key Is Exposed

Again this risk exists if you are not using a service like Coinbase, but managing your own digital wallet. In such cases, someone may obtain your details through an email or any other means. One common example is someone showing his or her private key on a live TV show and hackers instantly copying it and robbing the Bitcoins in the wallet. Make sure to keep your private key safe, like in a real life deposit box.

Hacker Copies A Bitcoin Recipient

This is one of the most notorious Bitcoin hacking stories. Companies held the initial coin offerings and asked investors to send digital currencies. Smart hackers then copy these companies with a fake website and then convinced the investor to send millions of dollars to different Bitcoin wallet. Once the digital currency was sent, there was no chance of recovering it. Both the company and investors lost Bitcoins. To avoid such fraudulent situations like this one, make sure the wallet address is genuine.

The Exit Scam

A company offers Bitcoin-related services such as online exchange where customers maintain their account. All of a sudden the firm vanishes, often claiming that they have been hacked but in reality, the owner pulls an exit scam taking away all your hard earned money. Be careful when registering with online exchanges and do your research.

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