Keeping coins safe and crypto security has been a hot topic. Since decentralization aims to shut down all middlemen, the responsibility for storing the coins lies with the user. Rule number one is to keep your private key safe. The best way to do this is to use hardware wallets.
Do Not Give Out Your Private Key
There have been several high profile cryptocurrency attacks in recent years. Crypto owners have lost a significant amount of money and have been unable to get it back. Once a wallet has been hacked, the anonymous nature of blockchain technology makes it almost impossible to recover stolen funds. It is possible to follow the path of the funds, but it is not possible to reverse transactions. Therefore, there is little hope of ever recovering stolen bitcoins.
How Does A Wallet Work?
When Bitcoin is stored in a wallet, users have a private key and public address. Public sound reinforcement is used to transmit coins to other users. The private key is required to access the wallet. So if your key falls into the wrong hands, you can most likely say goodbye to your money. Most cyberattacks have one thing in common: the targets are centralized hot wallets, either on public exchanges or online storage services. The majority of online exchange platforms use hot wallets. They manage private keys on behalf of their users. Do you see where the problem is? When using a hot wallet, you trust your provider’s security practices. This is generally not a good idea.
Hardware Wallets Are Currently The Safest Storage Solution On The Market
Following this rule means that you should not use third-party wallets that store their users private keys. This includes all online web wallets. You should also not use hot wallets that are permanently connected to the Internet, via an app. Using apps for payments is not a problem, but not for storing your assets. It is better to use the so-called cold storages, a storage solution that is not permanently connected to the Internet.