Cryptocurrency is an important new tool for protecting our identities online. It is a technology that is always offering new ways to innovate upon cyber security techniques. So how can we make the most out of this relatively new technology to stay safe online?
We are always looking to stay on top of the latest tools for cyber security as we stated here at MightyGadget. Here’s how to stay safe while using cryptocurrencies such as Bitcoin, and how to use blockchain technology to improve your general security online.
First Thing’s First: Set Up Your Wallet and Exchange Securely
All of the benefits of using cryptocurrencies will mean nothing if you do not set it up correctly. It would be like locking the windows but leaving the front door wide open. This is why it is so important to choose the right wallet and exchange.
Plus, keep track of your passwords. You will want a long and secure password that is difficult to copy. However, use a password manager, so that you do not lose it. Many have lost their coins after losing their password as stated at NYTimes. It should be secure, but you should never lose access to this password.
You will also want to look into which wallets do a good job protecting your identity. Something to consider is whether you want a hardware or digital wallet, for example. Hardware wallets are generally considered to be more secure. There can be large differences between them. Using a virtual private network with good encryption is also a key aspect of using Bitcoin in the most secure way possible.
Find the Right Sites to Use Them As Well
The other half of using Bitcoins, after buying and storing them, is spending them. You will want to think about where you spend them to make sure they are secure sites, wherever you are in the world.
For example, Arabian Betting will show you the best, most secure online casinos. They will even show you how to use VPN to set up and use your account. When they recommend sites, they now only take into account your security and identity protection, but also the quality of the bonuses and customer service.
Wherever you go online with or without cryptocurrencies, it is best to consider expert reviews. This will guide you to the safest sites where your identity will be protected.
Blockchain Enables New Decentralized Identity
Once you get all your cryptocurrency infrastructure set up and working properly, you can really start to take advantage of some of the innovative ways that this technology can protect your identity. One of the newest ways is the way blockchain technology enables the creation, maintenance and use of a digital identity.
What exactly is a decentralized identity? A decentralized identity replaces usernames with identification systems that are self-owned. You can use the blockchain ledger to verify this, and protect your identity while making transactions.
This is important because when our identities are stored in centralized databases, they are subject to hacks and breaches.
A decentralized identity gives individuals, business, and other organizations more ownership over their identity. This is a new way that blockchain technology can allow you to have more control over your security. Via verifiable credentials on the blockchain, you will have fewer worries about hacks and data breaches.
Bitcoin is Synonymous, if not Anonymous
Bitcoin uses blockchain technology. One of the main advantages of this digital cash is that it allows you to protect your identity online. It does so by only identifying the exact bits of the coin and where they are.
Ironically, all of these transactions are public. The public ledger is an essential part of what makes Bitcoin work. This public ledger and verification process is how a decentralized currency maintains legitimacy and avoids the double-spending problem.
So, how can a public ledger maintain your identity private? That is because each transaction has an identifier that is not necessarily connected to your identity. This will depend on the wallet you choose.
As for Bitcoin, each transaction will be synonymous, rather than anonymous. This means that with enough outside information and hundreds of hours, someone could potentially track a transaction or two to you. This is nearly impossible and has never been accomplished.