Bitcoin’s supply is set at 21 million, but it is likely that a large portion of the total will be lost forever. This situation is due to a number of reasons, such as the loss of private keys and discarded storage devices that contain large amounts of Bitcoin (BTC).

When bitcoin owners ignore their wallet passwords, they can sometimes become a target for hackers looking to steal their valuable cryptocurrency. Those who use third-party storage solutions invest their wealth in Bitcoins in hopes of the security protocols these services adopt.

In fact, many attack vectors are constantly being used to try to gain access to people’s bitcoin money. These uses, from simple to complex, eliminate all the obvious flaws inherent in any storage method.

Not your keys, not your coins
Cryptocurrency exchanges serve millions of customers, and it is reasonable to assume that a large proportion of that number use these services as their primary store of Bitcoin. With this storage scheme, the owner of the cryptocurrency does not own the wallet’s private key.

Not Your Keys, Not Your Coins is a famous chorus in the crypto room, and it works at its max to warn people about the dangers of storing cryptocurrency on third-party devices. In fact, the crypto landscape is littered with numerous exchange hacks where cybercriminals hack into unprotected platform wallets in order to steal clients’ money.

Sometimes the exchange recovers from the theft, and sometimes the platform goes bankrupt. Mountain. Gox and QuadrigaCX are examples of the latter, and affected customers are still struggling to get their money back.

These days exchanges are trying to update their security protocols to prevent piracy. Exchanges that store important unlocked cryptocurrencies in vulnerable hot wallets are now thwarted. Some platforms still make this big mistake and often pay a price for it.

Cryptocrime technologies are also evolving throughout the day, which makes it difficult for cybercriminals to filter their loot. Overall, 2020 saw a significant decrease in cryptocurrency theft, which included fraudsters who allegedly stole $ 3.8 billion in more than 120 attacks throughout the year. However, the emergence of decentralized exchanges has opened up another way for criminals to launder money.

The decline seen in 2020 has disrupted a four-year upward trend in cryptocurrency crimes. However, the decentralized economy appears to be a new platform for cryptocurrency and other scam players, as the new niche market will account for more than half of the stolen cryptocurrency in 2020.

No magic bullet
When it comes to robust Bitcoin Vault security, it is important to understand that there is no magic bullet. In fact, Robin Murray, CEO of wallet maker NGrave, raised this problem and told Cointelegraph that BTC holders are often torn between choosing to store their coins on low security exchanges or cold wallets, which are usually not easy to use.

In theory, everyone has conceivable ways to keep BTC in balance, and some of the flaws associated with some of these systems can serve as a springboard for attackers.

Take air gap blocks, for example. At first glance, isolating your computer from the Internet should provide reliable protection against hacking. However, according to a study recently published by Mordechai Gori, a cybersecurity researcher at Ben Gurion University in the Negev, it is possible to “generate covert Wi-Fi signals from computers with an air gap.”

“Air networks are not immune to cyberattacks,” Gauri stated in his paper. In fact, an experienced hacker can filter sensitive data such as master record data and biometric data from computers with an air gap.

Perhaps most disturbing, parts of the study revolve around possible methods of filtering data from air-gap computers located in Faraday cages, which are shielded enclosures that block electromagnetic fields. Thus, using only a Bitcoin wallet stored on a computer isolated from the Internet may not be as secure as it was previously thought. A person using this method may need to continuously turn the alarm off.

In addition, there are hardware wallets that provide robust protection through private keys stored offline. Although these devices interact with the computer during use, they never connect to the Internet.

The hardware wallet owner must either encrypt the keys or store them in a secure location.

Source: CoinTelegraph