Many people are increasing getting interested in the growing cryptocurrency market. There are significant highs and lows that are experienced. The major low that can occur is when coin hackers gain access to cryptocurrency exchange Coincheck. When amateur investors hear of such stories, they tend to be put off. But the truth is Bitcoins are very secure and require less effort to protect. The problem comes in when you don’t know how Bitcoins work. This can make one exposed to theft. Below are the most common ways used by coin hackers and how to prevent it.
The technology used by Bitcoin is one that can protect your funds. The problem can come in with you trusting someone else to operate your box. This can open a window for coin hackers to get your coins. This can be prevented by storing your coins by a trusted service such as Coinbase. The bitcoins are protected by security features found on the service. Also, having a Bitcoin wallet is another good option. This way you can secretly open and lock your box and make sure not to tell a third party about it. Bitcoin is very secure meaning nobody can access your private key so coin hackers cant access your wallet. Your coins can be hacked if a third party uses tricks to gain access of if the third party is compromised.
Coin hackers can get the password from storage service. When people use services like Coinbase you use a username and password to access your wallet. This can make it easy for hackers to access your password by breaking into your email account. They can use this information to reset your password. Having an app for verification purposes such as Google Authenticator helps in protection and safety of your online password.
Additionally, coin hackers can access your wallet once you expose your private key. This problem does not come from using services such as Coinbase but in mismanagement of your wallet. Coin hackers can get it if you keep it in your private email or if you show it to a third party. Once a hacker copies it, they can use it to empty your wallet. This can be prevented by writing your private key on a piece of paper or on USB stick and putting it in a safe place. The other common way coin hackers’ use is impersonating a Bitcoin recipient. Prevent this by verifying that the wallet address presented is legit before you transfer funds to someone else. Also relying on an insecure third party can be detrimental. There must be security measures in place to ensure they are not compromised in any way.