Blockchain technology has been making waves in finance ever since Satoshi Nakamoto invented Bitcoin around 2008. Some people think blockchain is just another word for “block,” but as Bitcoin’s creator once said, the ledger system isn’t “a new invention.” It is an open platform like Ethereum, with many different uses, some more than others.
The history of cryptocurrencies started in 2009 when Litecoin came onto the scene, as a very limited way to send money among friends and family. The idea seems simple enough, sending coins across borders by uploading them into a server and sending them out, no matter how much money you have. But this process wasn’t easy to master until someone decided to get involved, so we’ll explain everything you need to know about crypto theft.
What is Crypto Theft?
Just like any other type of fraud, digital currency is stolen through hackers or malware embedded through your device and takes access to certain files within your computer. One of the most common forms of cryptocurrency theft is called key-logging, where attackers create unique passwords, keys, or symbols and then store these things somewhere outside of your system, such as your phone.
If the file is even remotely close to your smartphone, the attacker may use those credentials as well. That’s why it’s good practice to keep your mobile device locked away at home, because anyone who tries to gain access to your device can download whatever they want. Another form is if you’re using something like a Mac you should never sign out on it. A password manager might prevent this from being easily possible.
What Makes Bitcoin the Most Valuable Currency Ever Made?
Bitcoin is one of many currencies to come into existence in the world, but what makes bitcoin the most valuable currency ever created? Let’s take a look at 3 reasons and try to answer that question:
Bitcoin price has no limit. Anyone can buy bitcoin, even a novice trader, however the value of bitcoin will never go down. Unlike gold, bitcoin is highly portable, which means you could sell bitcoin wherever and whenever you want. In fact, bitcoin can even be traded between buyers and sellers anywhere in the world. This gives its users tremendous flexibility, which means many crypto users cannot afford to lose their bitcoins due to fluctuations in market prices.
Unlike gold, bitcoin is highly portable, which means you could sell bitcoin wherever and whenever you want. Even though its creators have done their best to make sure that bitcoin is safe to trade to keep the price stable, there is only so much bitcoin can be produced, and each year more bitcoin is mined. So if you purchase a coin, then there is still going to be bitcoin sitting in exchange for the payment from another user.
Bitcoin doesn’t actually exist. No country has ever minted it, nor does anyone else have it in their possession. As long as the government decides what you can do with currency, then the rest belongs to whoever owns it.
What Are Common Types Of Crime Against Cryptocurrencies?
How To Protect Yourself From Such Scams
Now that you know what type of crime bitcoin is, let’s talk about the ways you can protect yourself from such threats:
Encourage everyone to use real money. Because Bitcoin is truly digital currency, no person can spend it without exchanging it, and it can never be taken out of circulation. Anytime you pay for goods online or service online, you pay for it with your actual money. This means nobody with your information using Bitcoin can give it to anyone to see whether you were buying or selling products. Don’t waste your Bitcoins, because people can now spend yours instead!
Because Bitcoin is truly digital currency, no person can spend it without exchanging it, and it can never be taken out of circulation. Anytime you pay for goods online or service online, you pay for it with your actual money. This means nobody with your information using Bitcoin can give it to anyone to see whether you were buying or selling products. Use two-factor authentication so you can use Bitcoin to pay for anything online. Two-factor authentication is just a fancy name for 2 pieces of ID that allow you to authenticate to log into various websites, apps, databases, etc. These 2 pieces of ID are the username and password that’s given to you by the website owner to log into them. They provide extra security for your transactions. Make sure both pieces are authentic to avoid having to worry about hackers infiltrating through your account. It’s almost always recommended to use two-factor authentication and make a strong statement about it so the site knows that you’re a legitimate user.
2. There Is Nothing Users Have Control Over. Remember Bitcoin was a form of electronic payments, and no one can give you unlimited amounts of BTC. Instead you need to verify ownership over a specific amount before giving it to someone. Only a couple of Bitcoin traders have control over this, and they’re doing a great job protecting themselves against scammers who try to steal the same amount. Take care of the coins after purchasing them. Keep track of every Bitcoins you own and give them back to the rightful owners the moment one goes missing. Many sites allow to earn credits for holding Bitcoin (such as Lending Club and Credit Karma) so you don’t even need to verify ownership of the product. Notifications and alerts will notify you if a seller sends more or less than a particular amount — even if it’s for a really small amount of Bitcoin.
3. Cybersecurity is Important. Never Trust Someone with Your Private Money. Be careful about who you share Bitcoins and other cryptocurrencies with. With nearly everyone using a wallet like Apple Pay, Bitcoin, and Dash, you can have an entire database of companies that hold those bitcoins to store the funds for you. The main way cybercriminals steal your bitcoin is transferring the funds between these wallets. It’s easy for hackers to steal a small percentage of the company’s revenue with your bitcoin without having to actually hack or infect that server or network. Hacking, on the other hand, can result in massive hacks and loss of thousands of dollars. Think twice before handing over your BTC to people you don’t know and letting them see it or know how much you’ve invested.
How Much Should You Spend On Bitcoins?
When I asked my friend Mike where he thinks bitcoin should be valued in terms of fiat, his opinion was clear: 1 Bitcoin = $1,000,000 USD. He went further and said you should spend a minimum of 50 Bitcoins per transaction, so you need to keep at least half in your Bitcoin wallet. But it’s not impossible to spend more, especially if you’re willing to give your Bitcoins to trusted sources instead. An estimated 40% of Bitcoins were lost because people just didn’t understand the cryptocurrency, or got distracted by all the hype. For example, I bought 100 Bitcoins worth ~$20,000, and I spent roughly that amount at 5 major eBay stores. My biggest regret is that I forgot to put half of them in my Bitcoin wallet, and I had to spend it to replace it. Here are some places and times where you can place that balance:
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