July 17, 2024


Me And My Business

Bitcoin Mining & Security, Part 2

Bitcoin Mining & Security, Part 2

Let’s recap about crypto security and if you need to, check out Part1.

Bitcoin security is important. Your bitcoin or any other cryptocurrency has a unique address or identification or private key. Therefore, you have to realise the importance of keeping it secure. If you loose it, it is hard to recover, hence the need for securing it as best as you can.

I need to emphasis this clearly, as security has to be of paramount importance and should not be taken lightly.

There are countless stories of individuals who have lost access to their computers (either through negligence or mis-deeds) and have ultimately been unable to recover their bitcoin or other cryptocurrency. This has to be the equivalent of leaving your wallet vulnerable either via a pickpocket or carelessness when out.

Fortunately there is a way to be doubly protective of your assets. A secure hardware wallet will ensure that, if you are unfortunate to loose access to your computer or tablet etc, (in whichever way) you have the ability to recover your bitcoin, ethereum, litecoin etc.

A hardware wallet allows you to recover your cryptocurrency on any other computer, as it is basically a usb connection you use to secure your transactions to.

A second tier of security.

Trezor is the original hardware wallet and is easily set up for your bitcoin security. There are other products available, but for the remainder of this article I have decided to deal primarily with the Trezor hardware wallet .

The main principal for Trezors bitcoin security is one of zero trust.

Using the Trezor screen, you can independently verify and physically confirm every transaction directly on your device.

It also requires a pin from you every time you log in. Thus ensuring it is you that is present at all times.

As a single purpose device, there are no other functions on the wallet.

Simple equates to added security.

Trezor is no exception to the risk of malware or viruses, period. However, the fewer devices Trezor communicates with, i.e. there is no Bluetooth, wifi or Qr code scanning, so the simpler the communication protocol is, the safer your bitcoin security is.

Also, Trezor has no battery. When unplugged, it is off and your coins are safe from any cyber attack.

I hope that I have emphasised the importance of bitcoin security. The main issues are, zero trust and concrete security. Also make sure that your backup process is just as secure, i.e. if necessary ensure your details are accessible to someone you trust explicitly.