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Security in Bitcoin – Verification, 2FA and Transparency

Home - Blockchain Academy - Security in Bitcoin – Verification, 2FA and Transparency
how to secure your bitcoin

Bitcoin security in the world of digital currencies is extremely important. If we don’t take proper care and protection of Bitcoin and other cryptos we have, we may be exposed to theft of our funds. Adequate BTC protection makes this type of investment more secure than with fiat currencies. That’s why it’s worthwhile to familiarize yourself with the protection solutions that can be applied to Bitcoin.

Bitcoin on a private computer

When you decide to store Bitcoin on your computer, you need to remember some important things. The most important is that you should remember to update the antivirus on your device. Additionally, scan your computer regularly. You can never be sure that the antivirus program will protect your device from virus attacks, but it definitely reduces the risk.

Do you use bitcoin wallets? If so, remember to encrypt it well. An appropriate password will ensure that if your device is stolen, the thief will not be able to access the funds in the wallet. Use a strong password that consists of at least 8 characters, uppercase and lowercase letters, numbers, and special characters – the combination can be random. Make a woman’s wallet as well, and preferably store your BTC in a variety of media such as USB flash drive or DVD.

Storage of Bitcoins on stock exchanges

A practical solution is to store your BTC on crypto exchanges. Unfortunately, such platforms may also be vulnerable to hacker attacks. Therefore, when choosing such a solution, remember to verify the account on the given exchange. Additionally, remember about the antivirus and its updates and use only a verified WIFI link.

Also choose a platform that offers additional security features such as KYC or 2FA. These processes will significantly increase the protection of digital money.

Two Factor Authentication

2FA is a process that involves additional verification of the user when logging in, withdrawing or depositing funds from the platform it uses. You can say that Two Factor Authentication is an additional layer to protect your digital currencies.
coincasso authentication
The CoinCasso exchange has also implemented 2FA as a system to protect your digital currency. This verification should be done while performing several actions on the platform. The process itself is very simple and consists of several steps. At the very beginning you should download the application for your mobile device – Google Authenticator. Then, using the application, scan the QR code, which is displayed to you in the exchange panel. If we do this, the code will appear on the phone screen, which you have to enter to pass 2FA correctly. This is a very simple process, which provides additional security.

Procedure KYC

KYC – Know Your Customer is a process that financial institutions use to obtain information about their customers’ identities. This procedure is also used in the crypto market. KYC provides verification of your personal data on various crypto platforms. The process requires the provision of data that relate to the name, first name, address, proof of identity or country of origin number.

KYC verification should also be performed on the CoinCasso platform. This is a process that provides additional protection and is performed immediately.

Transparency

Transparency is also a known and important function of exchanges. The transparency of the exchange mainly concerns two areas of operation of the platform. One of them is proof of solvency, and the other concerns the legality of the transaction volume. This is an important aspect in the case of the operation on exchanges. Such information allows the users to track accurately the transactions that are executed on the platform.

CoinCasso is a transparent exchange, where all transactions are recorded on a blockchain. With this solution you can be sure that your funds are safe.

Decentralised exchanges

Decentralised exchanges are much more secure than centralised solutions. And why? This type of platform works without intermediaries. It connects buyer and seller directly. It uses the idea of smart contracts to execute transactions.

Thanks to this solution, this type of exchange is simply safer and more anonymous.

Collapses of stock exchanges

Nevertheless, according to many opinions, it is best to keep your crypto in your wallets. Keeping all your funds in one place – the stock exchange – is not the safest solution. The stock exchanges are still vulnerable to hacker attacks and often even the best safeguards are not able to secure our money. History shows that the collapses of large stock exchange platforms have occurred.

The biggest collapse in history has been covertly passed by the stock exchange Mt. Gox, which suspended its operations in 2014. What happened to that platform? On 24th February 2014, Mt. Gox completely shut down its website. A few days later, the company filed for bankruptcy in Japan. The stock exchange declared that it lost 850 thousand BTCs, which belonged to 24 thousand users of the platform. At that time it was worth $470 million. Additionally, it is worth noting that it was about 7% of all BTCs in circulation. In fact, to this day it is not known how such an amount was lost. The company has not issued any statement on this matter. Most likely, the whole situation was caused by a security breach. To this day, the whole story is definitely one of the biggest crypto scandals in the world.

Additional safety issues

There are many dangers waiting for us online. There are viruses that can change the Bitcoin address sent to someone. Always confirm that a valid address has been sent to the recipient. Bitcoin transactions are irreversible.

Fraudsters often use different instant messengers, and we can also find fake BTC and other surreptitious offers on the web. Therefore, remember that vigilance is essential, and additional technologies can help to store digital currency properly and safely. You can keep your virtual money on your computer, bitcoin wallet or exchange platform. But it’s up to you to decide where your funds are safest.

Magdalena Aleksander

About The Author

Magdalena Aleksander
Junior Marketing Specialist

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