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Are You Familiar With Cyber Security Risks Of Bitcoin?

If you are one of those cryptocurrency fans, who just decided to join the market, the first important thing you should know...

Written by Wallebi Author · 2 min read >
Cyber security Risks Of Bitcoin

If you are one of those cryptocurrency fans, who just decided to join bitcoin market, the first important thing you should know is the risks, which is associated with Bitcoin. It is recommended to ask yourself the question “am I familiar with cyber security risks of Bitcoin? Or not”. In this article we are going to introduce some those security elements to aware new users from the potential risks.

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Cyber security risks of Bitcoin; Using wallets are risky

As you may know, there are two types of wallets. Cold wallets and hot wallets. Although cold wallets do not connect to the internet and are much safer, both wallets are vulnerable to cyber-attacks. For instance, a cyber-attack on Binance hot wallet resulted in 7,000 Bitcoin theft, which was equivalent to $41 million. In another case, Gerald Cotton, who was holding $137 million cryptocurrencies passed away in the condition that he was the only person holding his wallet password. After his death, some experts began to investigate his laptop. Interestingly, they realized hackers could empty his wallet before his death. However, some believe that he faked his death and ran off with the funds.

The Dark web is waiting for your sensitive data

In case any security breach takes place and hackers become successful to steal your data, your sensitive data may end up on dark web. Actually, there are always some potential buyers of stolen data on the dark web in order to take advantage of them. In one case hackers could get access to the personal information of 80,000 people. This information consists of home addresses, emails and phone numbers.

Although hackers never decided to sell the stolen information on the dark web, it could be a good example to proof that you should be aware of your information’s value and always try your best to keep them safe.

In fact, many people join to use Bitcoin due to its decentralized nature. The main reason is that they believe it is much safer than traditional bank system. Despite the fact, you should always be careful when you are signing up on crypto-related websites because your precious data and information may end up in the dark web. As a result, you will be the next victim of hackers.

Social media scamming as one of the common ways

If you are a fan of cryptocurrencies, you are definitely following social media profile of leaders in crypto and fin-tech industry. Therefore, you would be aware of the latest news and information about your favorite industry.

One of the common methods, which hackers use to fall victims in their trap is to offer those crypto enthusiasts tempting offers. In most cases they ask people to send them some tiny amounts of crypto and then receive double or triple of the amount in return. However, the truth is that one will never receive anything in return. In fact, this is one of the common ways to scam people a small amount of money and steal their assets. In this case, not only the hacker will accumulate a significant amount of crypto by collecting those tiny amounts, but also they ask for personal information and steal the data as well.

Cyber security risks of bitcoin; Conclusion

Perhaps, one may still want to use Bitcoin while is familiar with above mentioned risks. For this reason always do your own research. It is essential to be aware of pros and cons of any move before making it. In addition, one need to be highly educated in this sector in order to have a safer contribution. Bitcoin is not risk-free. Therefore, educate yourself first and then deep your toes into this modern world.

Written by Wallebi Author
Author and analyst in the field of cryptocurrency Profile

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