Bitcoin has become a popular digital currency in the past several years. Its price has fluctuated tremendously in the past five years. And now, everyone is rushing into buying it by using various applications such as Coinbase. As always, the bad actors (i.e., hackers) are on the prowl to exploit weaknesses. These weaknesses include the lack of preventive measures such as encryption and backups to secure the wallets. Therefore, once the wallet has been hacked, there isn’t much the victim can do to regain the digital currencies.
It is important to remember that Bitcoin transactions are transparent. In other words, all Bitcoin transactions are public, traceable, and stored on the blockchain network. Bitcoin addresses are the only indicators that show where they are stored and transmitted. Our research indicates that you should be able to protect your privacy if you use a new Bitcoin address every time you receive payment. Technology experts recommend that it may be prudent to use several wallets for different objectives – i.e., you can have a software and hardware wallet that can be used for a different reason. This way, there would not be a direct link between the cryptocurrency transactions.
Technology experts recommend not posting a Bitcoin address on a public domain such as a social media platform. The whole point is to avoid publishing information regarding your digital currency transactions since it could let third parties identify your Bitcoin address. It must be noted that Bitcoin’s network is a so-called “peer-to-peer” network that can be used by the general public. Also, in this kind of network, the user’s Internet Protocol (“IP”) address can be logged without your knowledge or consent. Therefore, it’s important to use some kind of masking software (e.g., ToR) or other technology to hide your computer’s IP address. ToR, which is also called “The Onion Router” provides a way for its users to mask their identities. It was originally designed for the military but it has been used by civilians for several years.