The Ultimate Guide to Handling Bitcoin in a Hacker-Proof Environment

Author: Velvet Gold Mine Image source: Dazhi

No one can deny that Bitcoin has become a phenomenon that cannot be ignored. The number of mainstream companies that accept Bitcoin as a payment method continues to increase, and more and more venture capitalists are investing in different Bitcoin startups. However, as the world's first online currency, Bitcoin is becoming more and more popular. All this has its precursors, especially the anonymity options provided by blockchain technology, which makes hackers and scammers salivate.

Any time you lose money from your credit card or bank account, your bank or insurance company will compensate you for your losses. But what if your Bitcoins are stolen? Who will compensate you for your losses? Therefore, keeping your computer and Bitcoin wallet secure is crucial to preventing hackers from stealing your Bitcoins.

How hackers target your Bitcoin wallets and exchange accounts:

To maximize the security of your Bitcoin wallet, you first need to understand how hackers can steal Bitcoin by targeting your computer, phone, or server. Here are some of the most common attacks that hackers can use to detect weaknesses in your operating system and then steal Bitcoin.

1. Hitting the first link. In my opinion, nowadays, if the IP address is stolen, half of the attack is already done.

In most cases, hackers create a malicious link and send it to the target computer. Once the user clicks on the link, their IP address is recorded by the hacker.

If you use an online Bitcoin wallet, you may receive a "fake" email with a link to an online wallet that directs you to click on a "fake" page. You enter your login information, which will be sent directly to hackers who will rob your Bitcoin wallet; however, because all high-end online wallet providers have SSL protection, if you are careful enough, you will easily see through these "fake" login pages.

2. Keylogger:

Keyloggers are the easiest way to get passwords, and they can fool even a tech-savvy person. In short, a keylogger is a script code installed in the target computer's operating system that records every keystroke and then sends it back to the hacker, mostly via FTP.

The process of successfully implanting a keylogger depends on many factors, including the operating system, the age of the keylogger, and the level of scripting used to implant the target computer. Keyloggers are often implanted while using a browser; regardless of whether the copy of the operating system is genuine or pirated, and regardless of how outdated the operating system is in terms of security and bug fixes.

3. Stealing software:

Stealer software is software that is designed to obtain passwords and log into accounts stored in your browser. Once successful, stealer software can be very powerful. Most often, stealer software is a file that is implanted on a computer online or through "social engineering" using a USB.

4. Cookie hijacking

Cookie hijacking or session hijacking is the process of maliciously exploiting a valid computer session to obtain unauthorized information or services.

Http uses many TCP connections, and a web server must authenticate the user's connection in some way. Session tokens and cookies are the most widely used methods of authenticating clients today. Cookie hijacking has many forms, including session theft, cross-address scripting attacks, man-in-the-middle attacks, and browser man-in-the-middle attacks.

How do you protect your Bitcoin wallet and transaction history?

1. Operating system and vulnerability fixes

The first step to protect your Bitcoin wallet is to use a genuine operating system that is frequently updated with security features and bug fixes. I do not recommend using an Android device to log in to your Bitcoin wallet, because, in my opinion, the Android operating system has many security risks and is easily attractive to hackers.

2. Bitcoin Wallet Client Vs Online Wallet

The security of most online Bitcoin wallets is questionable. A large number of Bitcoin wallet providers and Bitcoin exchanges have suffered widespread security attacks, and such services are still unable to provide adequate security and insurance for their users. If you must use an online Bitcoin wallet service, use "two-factor authentication" to ensure security.

Bitcoin wallet clients are the most effective way to ensure the security of your Bitcoins, because only you have the secret key. Don't put all your eggs in one basket, for example, keep a small amount of money on a computer, server or smartphone for daily expenses, and then use "cold storage" to store the rest of the Bitcoins. Both methods must have strong passwords. Multi-signature is another way to increase security.

3. Use a proxy server and VPN

Proxy servers and VPNs can enhance the security of your Bitcoin wallet. Although most people mistakenly believe that VPNs allow them to surf the Internet anonymously, this is not the case and does not protect privacy. Think of VPNs as "curtains" that only cover the privacy of your house, but your house address will still be exposed.

A VPN reduces the chances of a hacker gaining access to your router, thus reducing the likelihood of a hacker attack.

4. Anti-phishing browsing behavior

Always be careful before clicking on any link. As mentioned before, the second time you click on a malicious link your IP address will be logged. Whenever you are suspicious of a link, use the "Phishing Site" service before clicking on it.

5. Encrypt and backup your wallet

Wallet backups are essential to protect against computer crashes or human error. Encrypted backups can help you protect your Bitcoins in the event that your computer or phone is stolen. You should always encrypt online backups, as even an Internet-connected computer is vulnerable to malicious attacks. Therefore, any backups that can access the Internet should be encrypted.

6. Refrigeration

Offline wallets are sometimes referred to as "cold storage" for Bitcoin. Cold storage is the best way to store Bitcoin that is not connected to the Internet. Cold storage should be used for Bitcoin storage.

Summarize:

Although Bitcoin is the most vulnerable virtual currency to hackers today, strict security measures can resist most attacks. When conducting Bitcoin transactions, you should use a secure browser on a secure device.