Bitcoin reliability It owes its debt to blockchain technology. This technology has breathed new life into the financial world with many innovations.
Bitcoin works with three basic principles: decentralization, open source code, and peer-to-peer technology. The blockchain, which embodies these three principles and forms the basis of bitcoin, is based on mathematical algorithms, encryption, and numbers to ensure security as a system of integrities. That is In Bitcoin transactions, the focus is on mathematical transactions rather than brokerage firms and governments.
If we briefly touch on the security features of this new technology;
- It is distributed: All participants have access to a copy of the entire notebook with all transparency.
- It is anonymous: Participants are anonymously identified.
- Timestamped: The transaction time is recorded in the block.
- There is consensus: All participants confirm the validity of each other’s records.
- Cannot be changed: An approved transaction cannot be changed or undone.
- Encrypted: All records are encrypted individually.
In addition to the security provided by blockchain technology, bitcoin also has its own security features.
- Since it has a decentralized structure, it is not affected by states, crises or even wars. No one can access or confiscate your Bitcoin holdings, and it is available anywhere in the world.
- You can store your bitcoins in online wallets or offline cold storage
Security Tips to Consider If You Have a Bitcoin Wallet
Daily Use Tiny Amounts
A Bitcoin wallet is not much different from a wallet in your pocket. If you don’t carry thousands of dollars in your wallet, you can do it for your Bitcoin wallet as well. It makes sense to keep smaller amounts of your Bitcoin wallet, which is mostly sitting on your computer, mobile device, or server, to allow you to spend your daily money, and hide your other bitcoins in a more secure environment.
Back Up Your Wallet
If kept in a safe place, backing up your wallet can protect you from computer failures and, of course, errors. Separately, if your wallet is encrypted, it will allow you to control your wallet after your phone or computer is stolen.
Include Your Bitcoins in Your Will
If you don’t have a second plan for your friends and family, your bitcoins could go to waste. If no one knows the location of your wallets or your passwords without you, your principal cannot be recovered. Spending some time on these problems can make a huge difference.
Keep Your Software Constantly Active
Using the latest version of your chosen Bitcoin software ensures that you have important stability and security fixes. Updates can prevent various levels of issues, include new and useful features, and keep your wallet safe. Keeping all other software on your computer or phone up to date also keeps your wallet’s environment safe.
Put passwords in your wallet that no one can guess
If you encrypt your wallet or smartphone, they will need to enter a password before someone tries to withdraw funds. It can defend you against thieves, but it can’t defend you from software or gadgets that track the keys you press.
Never forget your password
You should make sure that you will never forget your password, otherwise you will lose your balance irreversibly. Unlike your bank, the password recovery options in Bitcoin are very limited. In other words, you should not forget your password even if you have not used it for years. You’d better write down your password on a piece of paper and hide it in a very safe place.
Use a Strong Password
Passwords that consist only of letters and words with meaning are considered very weak and very easy to crack. A strong password should consist of letters, numbers, and punctuation marks, and contain at least 16 digits. The strongest passwords are those created by programs produced for this purpose. Strong passwords aren’t easy to remember. So it should be memorized well.
