Is Bitcoin Secure?
Many have asked if Bitcoin is a safe and secure way to invest. Security has always been a top priority when it comes to money. Having the peace of mind knowing your wealth is safe and secure is important. Keeping hackers from gaining access to your credit card and banking information has been a constant battle for years. As technology advances, financial institutions have to continually update their security to keep up with criminals trying to steal your money. Bitcoin solves this problem with encryption and giving you total control of the type of storage for your funds. Here are a few examples of why Bitcoin is the safest and most secure way to store your wealth.
Private And Public Keys
These are the “keys to the kingdom” so to say. These keys are made up of a mixture of numbers and letters, their role is to encrypt the transaction before sending it to a recipient. You could think of public keys as a mailbox, and the private key as the key to the said mailbox. Anyone can insert letters and packages through the opening on the mailbox, but the only person that can get to the contents of the mailbox is the one that has this unique key. It is very important to never give out your private key as the security of your bitcoin can be compromised. This key is stored on your digital wallet. Losing this key means you can no longer access your bitcoin.
Digital Wallet
A digital wallet stores your private key. When a transaction is made, the wallet creates a digital signature by processing it with your private key. This creates a secure system. This signature is used to confirm that the transaction has come from a particular user and makes sure the transaction cannot be changed once it is initiated.
Storing Your Digital Wallet
A digital wallet stores your private key. When a transaction is made, the wallet creates a digital signature by processing it with your private key. This creates a secure system. This signature is used to confirm that the transaction has come from a particular user and makes sure the transaction cannot be changed once it is initiated.
Conclusion
Keeping your money safely and securely in your own hands is one of the goals of bitcoin. Being able to store wealth without the prying eyes of others gives you total financial freedom.