How can somebody steal your Bitcoin?
Is it possible for someone to steal your Bitcoin? Well, let’s find out ways criminals can quickly get access to your Bitcoin and exploit it.
Bitcoin theft is a worldwide issue reported to the press, making people question how safe investing in this virtual asset is. Even though blockchain technology has enhanced security, people created it, so it is prone to attack as any other innovation. However, understanding how the theft occurs is fundamental in helping one knows how they can protect their virtual assets. This article will take an in-depth analysis of how somebody can steal your Bitcoin.
Attacking the Exchanges
Bitcoins are bought, sold, and stored on exchanges, and these exchanges attract thousands of users with constantly growing volumes. The crypto exchanges store millions worth of Bitcoin for their customers, which is why criminals target these platforms more than individual Bitcoin users. In doing so, they generate massive payouts. If hackers have the right tools, they can easily steal Bitcoins from exchange platforms and their customers. Targeting exchanges help them steal vast amounts of Bitcoin in one single attack.
However, the question is how these servers access the exchanges and steal. Criminals can quickly attack crypto exchanges with weak security measures since some of them store their passwords on their servers. Once the criminal accesses the password, they can soon move the virtual asset from one address to another, depriving people of access to those Bitcoins.
Hacking the Blockchain
A blockchain is a code composed of interlocking blocks that store all the details of transactions carried out using Bitcoin. You can quickly tell that everything that involves Bitcoin relies on the blockchain. Each block is linked, so it is impossible to change a block without altering the whole chain. And this is an aspect of security created by those who vouch for the benefits of this digital money.
On the other hand, there is a specific theory that if a group were to get more than 50% of a particular blockchain, it would start rewriting transactions, blocking new ones, and double-spending coins. However, undertaking such an attack is incredibly hard and requires a lot of energy, especially with Bitcoin.
Theft of Private Keys
Private keys are like passwords for securing the digital wallet from unauthorized access. That means that anyone who gets those keys can easily access your wallet and withdraw funds. Stealing your private keys is one of the things criminals will struggle to acquire to steal your Bitcoin. Some store their private keys on exchanges or cloud drives that link to the internet. As a result, criminals can easily hack those platforms to access your private keys. If that happens successfully, the hackers can easily control your digital wallet, allowing them to access and transfer your Bitcoins to untraceable addresses.
Attacking Dark Web Marketplaces
Dark web marketplaces allow people to transact with the utmost security and privacy. These platforms cannot be accessed via ordinary search engines but have several e-commerce sites. Criminals know that most people trust such exchanges to conduct transactions worth millions.
Despite the strict security measures that dark web marketplaces come up with, they are also vulnerable like the other exchanges. Some hackers can compromise those security measures and gain access to the platform.
Exploiting the Vulnerability of Digital Wallet
People visit exchanges like Crypto Trader to purchase Bitcoin. However, other service providers offer digital wallets, and some keep users’ private keys in virtual wallets for convenience. These wallets are also vulnerable to criminals despite them having unique features.
Bitcoin has been vulnerable to criminals, especially on crypto exchanges and digital wallets, for some time, making people question if it is safe. Nevertheless, most security breaches happen due to users’ negligence, such as using the wrong platforms or disclosing information about crypto exchanges and wallets.