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In this brief guide, we outline key risks to watch out for, such as centralized exchanges and phishing scams, and offer practical advice for maintaining the safety of your Bitcoin holdings.
If we mainly listen to traditional media, it's easy to think that Bitcoin is unsafe and often the victim of attacks.
But is that true?
Bitcoin operates through a ledger of its transactions called the blockchain, and thanks to decentralization and Bitcoin's security systems, it has never been hacked to this day.
So, where do the losses and thefts of bitcoins come from?
The use of centralized exchanges is the most deceptive, as these are companies that create an interface that seems safe by adopting the codes and services of banks, but which represent a vulnerable point of centralization.
For example, Mt. Gox in 2013, and more recently FTX, which declared themselves insolvent following poor management of their activities, blocking users' funds for years.
Mt. Gox's creditors are actually being reimbursed, more than 10 years later, while legal proceedings for FTX are about to conclude 2 years later.
To avoid this, it's crucial to transfer the majority of your funds to a wallet for which you hold the keys.
Wallets, which hold and secure your private keys and therefore your funds, represent an attack surface.
Indeed, although the most used wallets are mostly safe, if the device on which your wallets are installed can be compromised, hackers could steal all the funds.
To prevent this, it's important to maintain good digital hygiene, meaning not downloading files from unknown people or sites, using complex passwords and never sharing them, and avoiding connecting to public Wi-Fi.
Phishing, a form of online scam, has become a major threat on the internet and in the realm of cryptocurrencies, leading to significant financial losses for many investors.
This involves fraudsters impersonating legitimate companies, prompting victims to disclose their personal information or transfer their cryptocurrencies to malicious wallets.
These attacks are often carried out via deceptive emails, messages, or calls.
Once created, it's crucial never to share your private keys. No well-intentioned person will ask for access to your funds. These details must remain confidential. Additionally, always verify the authenticity of the websites you visit.
A large part of cryptocurrency thefts are related to smart contracts. These are complex applications that allow for the creation of various applications but present numerous security vulnerabilities.
If you get involved in cryptocurrencies and small blockchains, make sure to be fully aware of all the risks in detail. It's a risky universe, even for experienced users.
As Bitcoin and the Lightning Network have been tested for many years, the risks are lower but not nonexistent.
Bitcoin is a secure value exchange infrastructure thanks to the decentralization of its network.
Bitcoin was built to be more profitable to secure than to attack. This is demonstrated by tens of thousands of computers verifying and confirming transactions simultaneously. To attack Bitcoin, one must take control of the majority of its computers, that is, 51%.
Such an operation would be very costly for an attacker and becomes less and less feasible as Bitcoin is adopted and more people around the world participate in the network.
So, when using Bitcoin on-chain, be sure to keep your 12-words seed phrase safe. Write your words legibly, store the paper in a dry place, safe from potential fires and prying eyes.
When using the Blink wallet, make sure to have registered your phone number. To enhance the security of your funds, consider providing an email address and setting up two-factor authentication (2FA).
In addition to this, be wary of anyone who contacts you in an unusual manner, avoid using public Wi-Fi, and refrain from downloading files whose origin you don’t know.
If you hold a significant amount of bitcoins, and if you are uncomfortable with the idea of keeping this sum in a wallet on your phone or computer, you should consider purchasing a hardware wallet, a physical wallet that protects your keys.
