Crypto Security Explained
In addition to the loss of cryptocurrency, a number of users (31800 to be exact) were faced with the possible identity theft, as the cyber criminals have managed to obtain their personal information, anything from their names and mobile phone numbers all the way to their email addresses.
As Bithumb stated, about 3% of their users have been affected, losing hundreds of millions in South Korean Won.
Namely, though many people suspected that it was the main server that was hacked, it was eventually discovered that the breach stemmed from a private computer of Bithumb employee.
Namely, according to Bithumb the reason why many users got targeted is because they kept using the disposable passwords for online digital transactions.
For comparison purposes, 1 billion won is about $870,000.
How to Secure Bitcoins through offline hardware wallet
As highly complex units, modern operating systems provide a large attack surface pulling in hackers from all over the world.
In addition, they are also responsible for leaking information without users knowing about it.
All these make it impossible for a user to have a completely secure wallet on an Internet connected PC.
So the question arises: where can you keep your Bitcoins if anyone can hack your Internet-connected PC?
As cold storage is set on a device that is never connected to the Internet, the chances for a breach are minimal.
Cold storage is usually an old laptop that is never online.
After all, Bitcoins are made for online usage, rather than offline storage.
Namely, once the laptop is connected to the Internet, there’s a possibility of a cyber attack.
The private keys are kept at bay from the Internet as they are stored in a protected area of the device and can’t be transferred out of the device.
Hence all the transactions need to be confirmed within the device.
As portable hardware wallets are virtually impossible to hack, the information displayed on their screens is often far more accurate than information displayed on the PC.
With the prices surging to their all-time highs, $2600 per Bitcoin and Ethereum at $260, the future of crypto currency seems to be bright.
But when it comes to keeping all those Bitcoins and Ethereum safe and sound, it does blur a bit.
But one thing is for certain, we need to protect our data and our crypto currencies immediately!
Best CRYPTO Hardware wallets for Cold Storage
It is recommended to deploy a hardware wallet to make sure your Crypto is secured.
There are several hardware wallets to choose from that not only can hold Ethreum but also several other crypto currencies.
Other Crypto currencies includes: BItcoin, Dash, Litecoin, Zcash, Monero, Decred.
The preferred wallets are Trezor or Ledger wallets.
There are different sizes and price ranges for what the user chooses.