Bitcoin is one of the assets that require high-security methods, unlike the traditional gold or digital currencies, there are plenty of methods to safeguard against malicious attacks, but Bitcoin which is a completely decentralized virtual currency has the lucrative benefits always on the brink of various types of criminal attacks, unlike fiat digital currencies, Bitcoin does not require any legal documents to convert into fiat currency or liquidate the holding, on the other hand, the Bitcoin network does not replicate the transaction on any type of government-controlled regulated database, therefore it is difficult for government regulators to track the whereabouts of the Bitcoin transaction
As mentioned by other expert’s Bitcoin is the safest method to launder money and evade USD, hackers or likely minded peoples always take advantages of loopholes in the financial system or other exchange weaknesses, their biggest intention is to transfer the wealth through buying and selling of Bitcoin, there are many types of suspected crimes in which Bitcoin will become the tool for money transfer, the crimes such as drug trafficking, bribery, extortion, forced trading and any type of illegal business all require the large sum of the funds and the Bitcoin have the potential to transfer millions of dollars in just fractions of seconds in any part of the world.
However the recent plunge does not devalue Bitcoin in the eyes of the investors and become the whirlpool of wealth and constantly attracting investors, such wealth always have the gravitational force for the criminally minded peoples, some of them create the deceived platforms where they promise to provide exchange services between USD and Bitcoin, after collecting enough funds, they use the psychological methods to tell investors their mistakes and they are not following the policy guidelines, after some time they realize that they have collected a large sum of funds and investors looking their original destination, therefore, they shut down the platform and run away.
There is also another method in which these criminals provide the fake coins against original Bitcoins, the Etherem ERC-20 token could easily be created with little effort, they provide zero-valued token against Bitcoin, in order to generate trust among investors these criminals set up hundreds of chat groups introducing blockchain, the rapid money, and transfer anywhere magnetic concepts, their main intention to grab the trust as soon as possible and transfer investors legally held Bitcoin, Ethereum and other blockchain virtual currencies to specific accounts, and in return, they transfer zero values currency even the false blockchain currency.
Unlike other assets Bitcoin only protected with help of private keys and hash codes, these credential always saved on the computer system or online account, the hackers know that today many users hold Bitcoin, they use plenty of methods to remotely hack computers and steal the bitcoin keys legally held by others, Bitcoin is a young among the investors but the hacking methods are not only mature but smart enough, hackers always use unique methods to steal account passwords, steal virtual currency, or try to gather as much as information regarding the target victim.
It is seen that blockchain continues to influences enterprises and will soon usher in large-scale applications in the near future, Bitcoin which is now fluctuated at 35,000 is likely to rise to 100,000 US dollars, in order to be a Bitcoin investor you have to deepen your understanding with Bitcoin blockchain and continuously explore the methods of security and safety of your funds.
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Source: https://medium.com/cryptocurrencies-ups-and-down/bitcoin-and-the-protection-of-your-funds-42e63d9f79e7?source=rss——-8—————–cryptocurrency
