Securing your Bitcoin

hardware wallet

Bitcoin – Decentralized digital currency is becoming more valuable than any other currency. Also it is not so easy to mine or earn like other cryptocurrencies which makes its unique presence. We don’t want to jump into the bitcoin because of its worth or value. Another important question among the people is that whether Bitcoin is safe and secured? And the answer is YES. Bitcoin Protocol is secure, also the transaction will take place directly between the two people and there won’t be any intermediate or centralized system to monitor or control the bitcoin transaction. But the wallets or services used to store and exchange the bitcoin may not.

digital cryptocurrency

Encryption Mechanism

Bitcoin is one of the famous cryptocurrency available today. Cryptocurrencies are the digital currencies which integrates cryptography as a central part of protocol. It uses SHA-256 encryption for both transaction verification and Proof of Work. The security of the bitcoin lies in one of its characteristics as transaction block chain.

Block chain is the group of blocks containing the transaction history. Genesis Block is the initial block of the Block Chain. The transactions and solved hashes add new blocks after the genesis block and creating the block chain. Joining one after other following the genesis block forms the block chain.

bitcoin wallet

Bitcoin Wallets

Bitcoins were stored in wallets but it’s not like other money wallets because the bitcoin wallets won’t store the bitcoins. Bitcoin wallets is of different types as hardware wallet, paper wallet, Web Wallet, and Software Wallet. People can make use of this in an effective manner. Among the different types of wallets, it is recommended to use the hardware wallet which is safe. Some hardware wallets like Ledger Nano S is very safe, also it is allowed to plug and use in the system affected by virus or anything. It can’t intrude into the hardware wallet which is used in most of the banking systems.

The Bitcoin Wallet stores your private key and public key information using which the transaction happens. The more secured way is to printout the details in a paper called paper wallet. It will be a slip of paper with your private and public key details. It is also called offline wallets which can’t be accessed through online.