Bitcoin has surged to $100,000, marking a historic milestone for investors. Yet, security remains a critical concern in the crypto space.
The Rising Threat of Crypto Theft
In the first half of 2024, cryptocurrency thefts skyrocketed to $1.38 billion, nearly double the losses recorded in 2023. Major incidents included:
- A $243 million phishing heist exploiting social engineering.
- $75 million in ransomware payments (July 2024).
- $65 million stolen via Bitcoin ATM scams.
These figures underscore the need for robust security practices when handling Bitcoin.
Understanding Bitcoin Ownership
When you buy Bitcoin, you gain control of two cryptographic keys:
- Public Key: Acts like a bank account number for receiving funds. Safe to share.
- Private Key: A 12–24-word seed phrase or 64-character hex code. Never disclose this.
Example seed phrase: reduce strategy reward burst gun castle album burger clap donate canoe black
Transactions are immutable on the blockchain, but your private key’s security determines asset safety.
Types of Bitcoin Storage
Custodial Wallets (Exchange-Based)
- Managed by platforms like Coinbase or Binance.
- Higher risk: Exchange hacks, account freezes, or mismanagement.
Non-Custodial Wallets (Self-Custody)
- Hot Wallets: Internet-connected (e.g., mobile apps). Convenient but vulnerable.
- Cold Wallets: Offline (e.g., Tangem Wallet). Ideal for long-term storage.
Secure Buying and Selling Practices
- Buy on Reputable Exchanges: Use platforms with 2FA and insurance.
- Transfer to Cold Storage: Move Bitcoin offline immediately after purchase.
- Verify Addresses: Double-check wallet addresses before sending funds.
- Sell Strategically: Transfer only needed amounts to exchanges to minimize exposure.
Pro Tip: Tangem Wallet integrates third-party providers (MoonPay, Mercury) for direct Bitcoin purchases via credit card or Apple Pay—bypassing exchanges for large sums.
Evaluating Wallet Trustworthiness
- Reputation: Check developer history and industry endorsements.
- Open-Source Code: Allows independent security audits.
- Features: Look for encryption, seed backups, and regular updates.
Security Checklist
✅ Backup Your Wallet: Use encrypted, multi-device storage.
✅ Update Software: Patch vulnerabilities promptly.
✅ Protect Seed Phrases: Store offline; consider fireproof metal solutions.
👉 Learn more about securing your crypto
FAQ
Is Bitcoin’s blockchain hack-proof?
Yes—but exchanges and hot wallets are vulnerable.
What’s the safest way to buy Bitcoin?
Reputable exchanges with 2FA and cold storage transfers.
How do I store crypto offline?
Use hardware wallets like Tangem to keep keys offline.
Can Bitcoin be used for money transfers?
Yes—its decentralized nature reduces fees vs. traditional banking.
What’s Bitcoin’s price today?
As of December 2024: ~$95,480 (subject to volatility).
By prioritizing security and leveraging cold storage, you can confidently navigate Bitcoin’s $100K era. Stay vigilant, and always prioritize self-custody.