Can criminals hack Bitcoin?

Bitcoin’s unprecedented rise has been both good news and bad news. The brighter side is that its rise has generated lucrative investment opportunities for investors and businesses worldwide. Bitcoin has also contributed to fast, secure, and low-cost money transfers, greasing the wheels of the global economy. However, Bitcoin’s high value, decentralization, and ease of use make it quite attractive to cybercriminals. So, can be Bitcoin be hacked? And, how can users protect themselves from such threats?

Bitcoin and security 

Bitcoin came into the limelight in 2009, when Satoshi Nakamoto launched it as a decentralized digital currency. That means Bitcoin is not subject to government regulations, political influence, or any central authority, like fiat currencies. Bitcoin should aid peer-to-peer transactions, which means users can freely exchange it or use it to transact worldwide without answering anybody or an entity.

However, security remains a fundamental issue among Bitcoin users since its inception. It’s safe to say that Bitcoin is tough to hack because of the enhanced security provided by its underlying blockchain technology. Blockchain validates and stores all Bitcoin transactions and users’ information on a decentralized ledger, which is very difficult to infiltrate.

Bitcoin network incorporates multiple computers across different geographical locations around the world. Each of those computers, known as nodes, holds a copy of the transaction data, as validated in the blockchain. As a result, a criminal may have to hack all the nodes to alter the data simultaneously. That is almost impossible.

Despite the increased security measures, there are still chances that criminals could breach the network at different stages of transactions.

Bitcoin transactions and wallets 

Bitcoin users store the reserves in Bitcoin wallets. Users can turn those holdings to trade or acquire investments on crypto exchanges such as Bitcoin Billionaire . Security breaches could occur through Bitcoin wallets and also during such transactions. Although developers continuously improve Bitcoin wallet security features, criminals are also constantly looking for vulnerabilities to exploit and steal from unsuspecting users.

Two-factor identification is the primary security feature applied in the transaction process to keep away hackers. Every Bitcoin user gets unique private keys, which only they know and can use to access their wallets. That means criminals can breach your wallet and extract Bitcoins if they gain access to your private key.

There have been numerous reports of criminal activities, including scams, frauds, and hacks, impacting widespread fears among individual Bitcoin users and cryptocurrency exchange companies over the years. One reason is that Bitcoin is a new concept that most people are still struggling to understand.

Although that makes cryptocurrencies more attractive and even highly profitable, it also allows criminals to capitalize on the loopholes before the network seals them. That is why all Bitcoin users should remain cautious and uphold the stipulated security measures in every transaction.

Mitigating hacked Bitcoin wallet 

If somebody hacks your Bitcoin wallet, follow the steps outlined below to remain safe from such acts in the future.

• Contact the Police: Bitcoin hacks are criminal and require police involvement to solve, so make sure that you contact the nearest police to report the crime.
• Change your login information: If you can still log in to your Bitcoin wallet, follow the regular prompts to reset your password and other security information. It is advisable to enable two-factor authentication to keep out the criminal.
• Notify your crypto exchange provider: You should also report the incident to the exchange company that holds your wallet, so they know that somebody has compromised your account. They may be able to retrieve some valuable information for investigating the crime.

It is improbable that you will recover Bitcoins in case of a hack. But, hacks mainly occur through hot wallets. Storing your Bitcoins in a cold wallet is the best way to prevent such incidences since it has no links to the internet.