(MENAFN- Tomer & Alon Marketing and Publicity)
Many people consider Bitcoin hack-proof due to the blockchain technology behind it. Ideally, many people argue that blockchain technology is revolutionary, potentially transforming different economic sectors.
This technology creates a distributed and decentralized ledger that fends off hacker attacks. The only way a person can hack Bitcoin is by controlling 51% of the entire network. Nevertheless, nobody has hacked Bitcoin so far. Therefore, many people are rushing to trade and invest in this virtual currency.
The success Bitcoin has experienced so far is the reason for the emergency of other virtual currencies. For instance, the People’s Bank of China has developed a cryptocurrency that citizens can access and use within their country’s jurisdiction. Ideally, this is a digital currency that the central government issues, and people can transact with it provided they adhere to the set laws. And people can use trustpedia.io to trade this virtual currency.
Nevertheless, traders and investors across the world are going for Bitcoin. And this has prompted some governments to think about and introduce stringent regulations. The emergence of followers’ legions, including hundreds of new virtual currencies launches and startup waves, predicated on the underlying Bitcoin technology has fueled the success of this digital currency.
Nevertheless, many investors are unsure whether Bitcoin is secure, despite the commotion and fuss surrounding it. So, can somebody hack Bitcoin? If yes, how can an investor protect themselves if this happens?
Satoshi Nakamoto launched and introduced Bitcoin as a decentralized virtual currency in 2009. That means no single administrator would regulate or oversee Bitcoin. Ideally, this virtual currency is not subject to central banks or the government’s control and regulation.
The virtual currency world has grown due to peer-to-peer transactions over recent years, and Bitcoin is at the forefront of these transactions. People use the blockchain, a public ledger, to record and verify crypto transactions.
But security has remained a fundamental issue for Bitcoin users since its inception. Hacking Bitcoin itself is not easy because of its underlying blockchain technology. But because users are constantly reviewing blockchain, hacks are not likely to happen.
However, people shouldn’t assume that Bitcoin is a safe investment because hacking it is difficult. This virtual currency faces potential security risks at different trading stages.
Bitcoin Wallets and Transactions
People hold Bitcoins in digital wallets. Cryptocurrency exchanges are the internet platforms where people trade this digital currency. However, crypto exchanges and digital wallets have inherent security risks. Although developers are constantly improving digital security wallets, some people are looking for ways to access them illegally and swipe their coins and tokens.
During transactions, individuals use two-factor identification as a security measure. Linking a transaction’s security to a phone number or email address means anybody with access to such components can quickly authenticate a transaction. A hacker can gather the non-crypto-related personal information of a wallet user and infiltrate their transactions.
It’s no secret that people have shared information about scams, hacks, and frauds that have led to severe losses for Bitcoin traders and investors. Criminals have also hacked some crypto exchanges and stolen money from users’ accounts. That means Bitcoin traders and investors should take precautions to keep their funds safe.
Despite having a robust underlying technology, Bitcoin is not hack-proof. Somebody can steal Bitcoin from digital wallets and crypto exchanges. Therefore, Bitcoin users should protect their crypto exchange passwords and the private keys that criminals can use to access tokens in their digital wallets. Also, individuals should be cautious when sending funds because Bitcoin transactions are irreversible.
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