Bitcoin can be preferred as a mode of payment for certain criminal activities. Cash can be traced by its serial numbers. Online payments also have arrangements to trace activities. The security of Bitcoin and its censorship resistance thus holds a particular appeal in such situations. The anonymity offered by it also helps protect the identities of the people involved in the transaction. Due to similar reasons, Bitcoin has also become common for trade taking place in the Dark Web with bonus bitcoin.
Generally, people can get these coins from 3 main ways. They are:-
- Real money can be used to buy them.
- People can pay using coins when you’re selling things to them.
- A computer can be used to create it.
How to protect them?
- Making sure to back up the keys- all the investors, businesses and consumers should make sure that their private keys are backed up securely. The transactions are guaranteed by the protocol.
- Using a VPN – best way to make sure that your data is protected when you’re holding cryptocurrencies or trading is to use a VPN because they are very reliable and secure.
- Separate wallets- users should always maintain a separate hot wallet- that used for daily transaction purposes and cold wallets- used as storage for long term purposes.
- Protect the key- make sure no one gets to know about your private key and use specially developed hardware devices like Trezor in case of cryptocurrency transactions.
To conclude many are still unfamiliar with the concept of cryptocurrencies but they are gaining popularity used properly it’s a safe technology with many credited advantages to it.