How Secure is Bitcoin? What's the Best Way To Keep It Safe?
How secure are your cryptocurrencies in your wallet? Find out the best way to keep them safe.
Crypto trading has never been more popular than it is now. Ever since Bitcoin hits its new all-time-high, the market has not shown any signs of slowing down.
Newcomers who are still unfamiliar with cryptocurrency yet interested in getting involved must have many questions in their mind, especially when it comes to whether cryptocurrency is safe enough.
So are cryptocurrencies like Bitcoin secure? Are the cryptocurrencies in your wallet at risk of getting hacked? Let’s break it down into simple words. So simple, even your grandparents will understand.
Crypto and banks
A cryptocurrency withdrawal works like any regular bank withdrawal. Just as online banking requires a personal pin, the secret pin to that bank account is known as a private key.
Your bank account is your public key. If you own a bank account, you’ll know that you have your own unique bank account number which others can transfer funds to you. In crypto, the bank account number is called an ‘address’.
In banks, the process of opening an account goes from:
opening a bank account > getting a bank account number > setting up your own pin > opening an account successfully.
For crypto, your pins (your private keys) are set up > bank accounts (public keys) are opened > bank account numbers (addresses) will then be given.
So, how easy can I hack in?
If you have a note with someone’s bank pin written on it, you still won’t be able to withdraw money from his or her account because you don’t have their bank account or card number.
But in the case of Bitcoin, once you know someone’s private key, you can infiltrate his or her bank account number (public key) and bank card number (address) to withdraw whatever is inside.
Wait… how does this happen?
This is because private keys generate public keys while public keys generate the addresses. As long as someone has your private key, it is possible for them to derive your public key and your address.
But hacking is practically impossible.
In theory, hackers have 2 ways to steal your private key. One, they can access through your address or public key by reverse engineering the private key. Two, hackers can brute force attack on a Bitcoin private key.
The first method is largely impractical because cryptocurrency systems like Bitcoin use a one-way function where a private key is used as an input to generate the public key, the output. This means that mathematical functions can only be calculated in one direction, making it impossible to calculate in the opposite direction.
Because of this, private key owners are able to distribute their public key with no worries because no one will be able to reverse the function and calculate the private key from the public key.
What about the 2nd method? How hard is it to crack through Bitcoin’s private key?
Before we answer this question, let's look at how private keys are generated.
A private key is a number between one, and 2 to the power of 256. Suppose you toss a coin for 256 times in a row and record the results of each toss. Whenever it faces up it’s 1 and when it faces down it’s 0. Once you’re done, you convert your long binary strings of 1’s and 0’s into the hexadecimal numbering system, aka hash. And there you have it, a Bitcoin’s private key.
To brute force a Bitcoin’s private key, a hacker has to search for the right number between one and 115 quattuorvigintillion (which is 78-digit numbers more than all the numbers of atoms in the universe!). It’s safe to say it’s harder to crack the private key than to find a needle in a haystack.
So even if a hacker owns a supercomputer, it is impossible to crack a bitcoin private key.
So yes, Blockchain is secure. You have my words.
Even though Blockchain has proved to be a decentralised digital ledger that is immutable, it is still possible for hackers to infiltrate your account if you did not secure your account!
Weak passwords, virus malware or even a loophole in the wallet of the crypto platform you are using may lead to a security problem like how having any digital transaction linked to an email or phone number means anyone who has access to your email or number can authenticate your transaction.
How to know if my crypto platform is secure enough?
You can always be more cautious with your account, but it is hard to control external factors like virus malware or your chosen platform’s security measures. Fortunately, there are websites that guarantee the best protection for your wallet, for instance, Altimates provides secure blockchain asset investment through arbitrage trading.
With helpful AI-integrated tools, Altimates facilitates arbitrage trading with their user-friendly interface and secured multi-currency wallet, while giving their users access to more than 16 crypto exchange platforms.
Zero risk platform for every crypto trader
Arbitrage opportunities are endless and risk-free in Altimates with millions of arbitrage trades conducted in an instant.
Arbitrage trading can be zero-risk with Altimates leading you through the way. In your perilous journey to reap a fortune, let Altimates be the one to guide you forward.
To find out more about arbitrage and Altimates, check out the links below: