Rising experts discuss Bitcoin security and risks

On November 18, 2013, the US government publicly recognized the legality of Bitcoin for the first time. The Bitcoin exchange rate instantly soared to $1:900. The market fluctuated for a while afterwards, but Bitcoin eventually broke through the $1:1000 mark and became a "currency" more expensive than gold. So, what exactly is Bitcoin?

What is Bitcoin?

When we hear about Bitcoin, we often hear the word mining, which confuses many people. However, in fact, it is very vivid. Anyone who knows a little about Bitcoin will know that Bitcoin is generated by continuous calculations on a computer using an open source P2P software. This makes people feel very incredible, "I run a software on my computer, and it can help me make money every day?" The answer is yes, because the process of running the software is similar to people mining in a mine. You can imagine that your computer consumes a lot of electricity and computing resources every day, mining in an invisible mine.

Security risks of Bitcoin transactions

Although Bitcoin does not rely on trading platforms, there are certain security risks in the Bitcoin trading process. The biggest known threat currently comes from phishing scams. According to a statistic issued by the Rising Internet Attack and Defense Laboratory, in the past few months, there have been several incidents of Bitcoin trading websites taking away users' property and disappearing without a trace around the world. Rising security experts pointed out that such websites generally do not have formal procedures and do not have any licenses that formal online trading platforms should have. Once users deposit money into the accounts of such websites, they will face great risks.

Security Risks of Bitcoin Storage

Is there a way to store Bitcoin on our own computers instead of online? In fact, this is completely possible. Since Bitcoin is generated by computer calculations, personal computers can naturally store it. Currently, a more common tool is called a Bitcoin wallet. Similar to mining tools, it also supports users to store and trade Bitcoin in a P2P manner. Users can deposit Bitcoin into their own wallets, or use wallets to transfer Bitcoin to others. But it must be mentioned that Bitcoin wallets are not completely safe. Usually, the security risks they face come from viruses and the computer operating system itself.

How can I use Bitcoin safely?

So how can we trade and store Bitcoin safely? Rising Security experts have put forward three suggestions: 1. When trading Bitcoin, try to choose a large and formal trading platform. The conventional method is to learn as much as possible about the details of the target trading platform before making a choice, check the legality of the trading platform's filing number and other corresponding certificates, and try to reduce the chance of encountering online fraud.

2. Use an offline wallet to store Bitcoin, back up key wallet files regularly, and set a password for the wallet. Although common Bitcoin wallets currently support password functions, they do not specifically require users to set passwords for their wallets. Therefore, users should actively set passwords for protection when storing Bitcoin.

3. Install professional anti-virus software and firewalls. These two security tools can greatly reduce the risk of Bitcoin storage and transactions. Users who do not have security tools can download the permanent free Rising Anti-Virus Software V16+ (download address: /pc.rising.com.cn/V16plus/) and Rising Personal Firewall V16 (download address: /pc.rising.com.cn/rfw/v16.html), which can help users stay away from computer viruses and phishing websites.