If history has demonstrated something is that everything can be hacked. We have seen many threats to the security of data stored virtually and commercial transactions. Now, with cryptocurrencies (Bitcoin, Litecoin, etc.) growing up in importance the need of more effective security has become a necessity more than ever. Also, it is fair to say must protocols for virtual currency transaction has been most successful in standing out improving themselves all the time.
Since its beginnings Bitcoin has demonstrated advances and advantages in terms of security as well as weakness, let us say that the perfect and unbreakable system doesn´t exist but Bitcoin has tried to reach that summit while becoming the biggest cryptocurrency firm nowadays. They have been subject to heated debate after suffering several attacks, one of the most recent and famous incidents was the attack on the Bitcoin exchange, Bitstamp. The amount of 19.000 BTC, equivalent to USD 5 million, were stolen.
So, how can you protect yourself?
Taking all of this into consideration this article will outline a number of measures to take in order to increase your security when making outgoing transactions using crypto currency. Have in mind that protecting your wallet is no your only concern, you must protect your identity from potential theft.
- Use an adaptable Bitcoin client
Using a Bitcoin client will allow you hide your IP address and keep your privacy, you should do that for every transaction. Also, you can use different wallets for every transaction according to their importance. It is recommendable to have a day-to-day wallet for small amounts.
- Your identity is important, protected
Sharing information in public spaces might be not a good idea, it comes to great importance to be careful where do you share information about your transactions, either if you do it on purpose or unwittingly. Try to avoid the web to talk about those matters.
- Use an “escrow service”
Escrow services are especially helpful at the moment to buy or sell something and you don´t know if can trust in the other person. In this case, the buyer needs to know that his money is saved, so it is sent through the escrow service while he waits to receive the item, and in the case of the seller, the person is absolutely sure that he is going receive his payment. When the item is received, the buyer notifies the escrow service and they proceed to finalize the payment.
- Make a backup
One of the benefits of using virtual storage for your keys is that you can make backups, it is recommended to do it frequently using different locations and resources. For extra protection is better to use encryption.
As many walls you build the better, encrypting you wallet is essential, especially when you are storing it online. The use of strong and complicated passwords is something to remember… so the password. Having this in mind there are helpful programs like DESlock+ to encrypt files with high sensitivity information.