Security of your bitcoins

Security is an important item when you own bitcoins. Bitcoin is sometimes seen as a risky asset, and indeed there are risks. These risks decrease while the Bitcoin network is growing exponentially. You can Hardware Walletdecide for yourself how safe your bitcoins are and you can protect them by using a device like a hardware wallet.

The risks of Bitcoin are dividable in 3 subjects:
-The Bitcoin network itself
-The security of the bitcoins you own
-The price of Bitcoin

On this page the following subject will be described:

How safe is the Bitcoin network?
How safe are the bitcoins you own?
What are the risks for the price of Bitcoin?
What is the safest way to own Bitcoin?
Compare the best hardware wallets and make an direct order

How safe is the Bitcoin network

Safety BitcoinsThe Bitcoin network itself is extremely safe, and there is a huge calculation power needed to hack the network. In theory the only way to hack the network is by delivering a bigger calculating power than the network itself. Today the Bitcoin network is many times stronger than the biggest super computers (e.g. Google, CIA) together and its strength is growing every day.

A bigger danger for the network is spam. By spamming the network, transactions can be delayed and this will decrease the functionality and popularity of the network significantly. Happily, the result of a spam attack on the network has always been a minor event in the system.

How safe are the Bitcoins you own?

It is very important to think about the safety of the bitcoins you own. An online wallet can always be hacked using mall ware or key lockers, and this can cost you all your bitcoins. It is, especially for big amounts of bitcoins, always advisable to keep them in cold storage. Using a hardware wallet you can keep your bitcoins in cold storage and still make easy transactions.

It is also possible to bring your bitcoins to a 3rd party, most of the exchanges have the possibility to store them in a bitcoin account. Remember that a vast amount of bitcoins were stolen from Mt. Gox, an early exchange market. All exchanges are relatively new, so they do not have a history of reliability.

If you decide to store your bitcoins on an account, choose one that has a majority of bitcoin reserves in cold storage. Also read the reviews on the web carefully. Nowadays you can open an account complete with a bitcoin debit card and insurance. With this bitcoin debit card you can pay worldwide at retailers and take money from ATM’s that support Mastercard. You can choose the currency for the card in USD, EUR and GBP.

What are the risks for the price of bitcoin?

The price of bitcoin can also be a risk. Since the price of bitcoin is currently volatile, due to it’s small market capitalization, but this risk will decrease as the network gets bigger. In a small market capitalization the price is somewhat easy to manipulate, by dumping a large amount of bitcoins for example.

Furthermore, some governments and financial institutions will feel threatened by the fast rise of Bitcoin and spread or overstate negative publicity. This will generally harm the price. These effects should be temporary because of the further adoption of Bitcoin, and the limited supply, the price should rise over the long term.

What is the safest way to own Bitcoin?

For the safety of your bitcoins you cannot change the network itself. However, what you can do is avoid theft by spreading your coins over multiple wallets, with the majority in cold storage, like a hardware wallet.

You can protect yourself against price risks by also owning other assets, like gold, stocks, alt coins and fiat money. It is probably not wise to invest all your money in Bitcoin as long as the price is so volatile, and to spread and protect your coins.

Compare the best hardware wallets

Read more:

Hardware wallet.

Bitcoins, altcoins and cryptography.

Trezor hardware wallet.

Ledger hardware wallet.

Keepkey hardware wallet.

3.9 (77.14%) 49 votes