Some might ask why the time needed to introduce bitcoins on the market by miners is so long. Would it be possible to release the bitcoins all at once? Well, this system of mining and getting bitcoins after a pre-established algorithm made the bitcoin so special, as this way, the market will be gradually used with the new currency. This is why all the computers in the network contribute to the “construction” of bitcoins, creating unique entities that can’t be falsified, reused, or traded without being recorded. The bitcoin is the safest currency in the world, which is ironic, considering that it was declared as the coin of hackers and scammers on the internet.
The computers in the network need so much time to release every block, as the transactions need to be hashed, confirmed and placed in a blockchain that generates new currency. This way, the value of the bitcoin is established by the number of transactions that are made with the currency. Let’s see the main characteristics of the bitcoin security system, and why it is considered so secure.
The existence of wallets in the bitcoin world makes it hard for the hackers to steal them. On the other hand, stealing unsecured bitcoins is possible for the advanced hackers, and this is why you should not keep the mined bitcoins on your browser. There are many websites allowing you to make good wallets, with double password protection and Google Authentication, which makes it impossible for hackers to get into your account.
The bitcoin wallets are secure, and they can also be used with trust from mobile terminals, both for Android and iOS telephones.
It is unsafe to keep your wallet on your personal computer, even if you have an antivirus and malware protection, as if the computer cracks, you might lose it. There are many trusted websites that can give you pretty reliable wallets.
It is even recommended to make two wallets, one to use for current operations, and the other secured one that you only use for transfers in the daily wallet. The super-secured wallet can be connected directly to your mining account.
Always use Ubuntu as an Operating system, as this way; you are sure that nobody tracks your activity. In other operating systems, your activity might be tracked by your browser and third parties.
The paper wallets are safe because they can easily be stored on offline computers. With the paper wallets, you will have the transactions recorded on a java script, which can safely be transferred on external supports. You can fund a tutorial about generating paper wallets on www.blockchain.info.
The paper wallet can easily be verified by trying to use it while the computer is offline, to make sure that it is not controlled by remote devices. You can even print the details on paper, so you could recover it if needed later with a performing scanner.
The simplest methods used by hackers to steal bitcoin details and transactions from others are to monitor the activities of other users, usually miners that have their computers vulnerable. Make sure that your computer is not infected. Even if there are no symptoms, like warnings of the antivirus, you should apply as many security methods as possible on your bitcoin wallets.
Keeping the wallet client updated with the latest addons released by the software provider is another method to protect your coins. This way, bugs are fixed and vulnerabilities are solved. There are some known vulnerabilities in the network, but if you check their list, you will know what type of wallet you are looking for.
The bitcoind wallet is an upgraded version of a wallet, allowing you to generate hashes for your transactions, which are like a protected password. However, this means to backup your wallet often, and to revert to those points whenever you feel that you have been the victim of an attack.
Why are the security matters so important? Well, the bitcoins can’t be regained by people that lost them, as the transactions are anonymous, so it is practically impossible to trace the person that has stolen the coins from you.
Any wallet contains a pool of 100 keys. Whenever the user initiates a transaction, one of the keys will be extracted from there, and a new one will replace it. A backup file stores your previous activities, besides the 100 ones that are already in the pool.
If your wallet was compromised in any way, and you have the backup file, you will have to file a request to your ewallet hosting service, asking them to generate a new wallet. Unfortunately, the bitcoins that were already spent during the last session are lost. This is why it is important for your wallet to be secure, and the only method to make sure about all your transactions is to use advanced security methods to secure your wallet.