The current situation on the crypto-currency market resembles a «crazy roller coaster». The incredible growth of the exchange rate has turned the head of the crypto-enthusiasts. In general, the prognoses of ordinary investors remain extremely optimistic and the major players of the stock exchange regularly warm up the interest in the bitcoins with their loud statements about its increase in value.
All this suggests that the purchase of currency will only grow. But since bitcoins have been a popular digital product, cyber-criminals have the potential to hack any PC and even the software crypto wallet installed on it. They can steal your funds have gained access to your private key!
One of the examples of major theft was the incident that occurred on December 6, 2017, when hackers stole 4700 bitcoins (it’s about 70 million dollars at the current rate) from the company NiсeHash.
It was reported that hackers used the vulnerability of the company’s website.
So what does it do? Even the most advanced crypto-companies can not protect the funds of their users?
As practice shows, keeping money in online wallets is not a good idea. So, what is the way out for the bitcoin holders?
Creating and storing a private key offline using a hardware wallet allows you to protect yourself from these theft cases. Of course, attackers can scrounge the hardware device itself, but it will be protected by your personal PIN-code or master-password.
What is a hardware cryptocurrency device and how to store coins on it?
A hardware wallet is an electronic device designed exclusively for storing and protecting your bitcoins. Hardware wallets are excellent things if you need reliable and convenient cryptocurrency storages with a high security level.
One of such convenient and indispensable mechanisms will be GIZA device. This is a highly-developed portable wallet, password manager with U2F authentication and cryptocurrency data storage. It generates a unique password for the access to personal data of a site.
GIZA device stores private keys separately from vulnerable equipment connected to the Internet. You can work with your private keys in a remote protected environment inside the hardware wallet which allows you to keep them safe even when you connect to a compromised or unprotected PC.
Your private key is stored in a special chip and can’t be visible for any device you connect without your permission. So, each transaction requires manual confirmation on your portable device.
What are the main advantages of GIZA device?
1. It is the easiest mean to store safely your cryptocurrency.
2. You can take it with you everywhere (built-in battery).
3. There are less potential vulnerabilities: a simple setup procedure for common users.
4. GIZA supports different ERC20 token.
5. It doesn’t leave any traces on your computer.
6. It has built-in memory: 16 Gb for your files!
How to avoid fraud?
Regardless of which wallet you choose, remember:
Your cryptocurrency is safe only when you generate a private key in a secure manner; do not pass it on to anyone else. Take care of its safety!
We offer you a bit of information about what happens when users pass their keys to the intermediaries:
– Bitfinex cracking, due to which users lost $ 70 million
– Error exchanger Mt Gox cost users $ 450 million
In order not to be in such situations, try to follow 3 simple rules:
– Generate your private keys in a secure manner, preferably in an offline environment (of course, this does not apply to wallets for everyday expenses, for which there will be enough a web-wallet).
– Be sure to back up your private keys. This will help you not to lose money in case of a breakdown of the computer and other force majeure situations. Make another copy of the keys that will be stored outside your apartment. This will help you in case of fire, robbery, etc.
– Do not forget about encryption of your wallets. This will help you to avoid physical theft of funds (for example, when you have stolen a computer or a hardware purse).
Bitcoins give you not only certain privileges but also a duty to treasure your money carefully. In fact, most acts of fraud and theft could be prevented, whether people use new protective technologies which are more technically savvy.
There is one simple rule: never trust your money to anyone!
The publisher of bitcoiner.today is not responsible for the opinions or recommendations expressed by its publishers. Investments in ICO's are high-risk investments, you may lose all or part of your investment. Consult with an investment specialist before you act.
The difficult thing is not to learn, the difficult thing is to know how to teach.
Editor and coordinator of the free book “La era de las BLOCK punto COM”
CEO of bitcoiner.today