Did you know bitcoin wallets are digital? And they are specifically used to store, send and receive bitcoins. That’s pretty good! You don’t need to worry about the safety of your hard-earned cash. Also physical cash is easy to steal but that doesn’t mean digital cash requires no security. In fact they are hard to secure. As a matter of acceptance, the world is full of good and bad people. In the same way, internet is loaded with different types of good and bad people. In the world of internet, bad people are known as hackers and they never leave a chance to steal things from you. Let’s talk about the security of digital cash.
Encryption And the Blockchain
Crypto currencies are digital currencies. Bitcoin is one of them and the most famous cryptocurrencies available today. This digital system implements cryptography (the art of writing or solving codes) as a central part of the protocol. Bitcoin uses SHA-256 the process of encoding an information or message called encryption for both its PoW system and transaction verification. The security lies in the transaction blockchain which stores owner’s transaction history. A transaction blockchain (chain of multiple blocks) is a safe transfer of value (information) between Bitcoin wallets. In these wallets a confidential data is kept known as a private key or seed, used to sign transactions. It’s a solid proof that the transaction initiates by owner of the wallet.
There are uncountable hackers who are constantly working to steal digital cash—Bitcoins! The reason they run behind bitcoins is they are worth a lot of money. As Bitcoins don’t exist physically like paper money or coins, you need to be very vigilant when storing your digital cash. Just like how protective you are about internet banking, same goes with bitcoins. You can have online access to your bank account when you’re given usename and password; similarly to access your Bitcoin wallet, a Public Key and a Private Key is set to login the account and further for making transactions. Therefore, to hack your wallet, hackers need to attack your password (Private key). So make sure your password is much complicated with a mix of capital and small letters plus special characters and numbers.
For all major operating systems free bitcoin wallets are available to serve a variety of your needs. You can download an app on your device for daily use; the installation is very easy and fast. Bitcoin hardware wallets are more secure than software wallets means they can be plugged out. Once hardware wallet is disconnected it becomes impossible to hack because Trojans and other viruses can’t enter in cold storage. So you can enjoy the peace of mind.