Bitcoin is an innovative payment network which has revolutionized business transactions and taken the cyber world by storm. It is the first “decentralized digital currency.” This is peer to peer i.e. P2P transaction which does not involve any banks or any intermediaries which means the users do not have to bear the fees for their transactions. This has a world wide network as it is joined to the several currency exchanges where the currencies can be exchanged for other currencies of that country. Bitcoin resides in a user’s virtual wallet on the computer or even smartphone device. The transactions are faster and it is an open source network means no one owns this. With all these its pros, however Bitcoin has its cons as well. The major drawbacks of Bitcoin:
Security issue as the transactions are virtual it is highly vulnerable to hackers and malware defects. Next the transactions are based on encryption for protection however if user misplaces or forgets the decodes then the Bitcoin cannot be used and all money is gone. Irreversible: Once transaction is made the money is gone from the account is gone forever and if there is any error it cannot be reversed again unless the receiver returns the money. Theft: Bitcoins if stolen will still retain their value so it is again a loss Anonymity issues: For each virtual wallet user has to maintain Bitcoin address hence user’s identity is anonymous however the protocol displays the transactions in public so number of transactions made by the address can be traced. This problem can be tackled by using a tool like TOR to mask computer IP address and hence increase the privacy.
Considering all the above drawbacks users needs to pay extra attention to safeguard their Bitcoin wallets and their identity from the digital theft. This can be done by using the below 10 security tips: Techworm has tried to bring some of best tips which users can use and secure their Bitcoin Wallets and their virtual money. By taking some extra efforts users can definitely protect their virtual wallet from the crooks who are ready to steal them.
