Bitcoin and other cryptocurrencies have attracted millions of users and investors worldwide. Bitcoin mainly attracts many people as it has a high chance of making significant profits. However, the growing interest in Bitcoin has also attracted hackers. Knowing that Bitcoin is a valuable digital asset makes hackers want to steal it from you.
Knowing how someone can steal your Bitcoin is essential. It will make you more proactive in ensuring that you take all preventive measures possible. For example, you don’t have to announce to everyone that you have Bitcoin. If hackers don’t know that you have Bitcoin, they won’t target you.
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How Does Someone Hack a Bitcoin Wallet?
Just like how you keep your money in a bank account, you keep your Bitcoin in a Bitcoin wallet. You can have a hot or a cold Bitcoin wallet. A hot Bitcoin wallet connects to the internet, unlike a cold wallet, which makes it more susceptible to hacking. Someone can hack your Bitcoin wallet in several ways.
Somebody can hack your Bitcoin wallet through a phishing attack. Phishing attacks use cloned websites to hoodwink users into sharing their login details. Hackers can create fake cryptocurrency websites that resemble legitimate websites. As a user, when you go to these cloned websites and log in, the hackers get your login details.
With your login details, the hackers can then use these details to access your Bitcoin wallet through a legitimate cryptocurrency website. With access to your Bitcoin wallet, they can transfer your Bitcoin to themselves. Before you realize it, you could have already lost most of your Bitcoin to hackers.
Hackers can use malware to target your Bitcoin wallet. And this happens when hackers send malware links to unsuspecting people. When you click on the links, your computer gets infected. With the virus installed on your computer to access your Bitcoin wallet, you are letting hackers access your information.
With such malicious malware, hackers can then send Bitcoin from your Bitcoin wallet to addresses that they control. Malware attacks can also affect cryptocurrency exchanges by targeting employees. And this can compromise the safety and security of the crypto exchanges and allow hackers to access users’ Bitcoin wallets.
Fake Hardware Wallets
Somebody can hack your Bitcoin wallet through fake hardware wallets. And this is mostly the case for those with hardware wallets for their Bitcoin. The idea is to trick you into replacing your hardware wallet and using one that is compromised. Hackers will send the compromised hardware wallet to you with a notification that you need to replace your old hardware wallet.
If you fall for it, the hackers will get your Bitcoin wallet recovery key when you plug the device into a computer and key in the information. The device captures the key and sends it to the hackers. With your keys, they can unlock your Bitcoin wallet on the blockchain and siphon your Bitcoin.
How To Protect Your Bitcoin Wallet?
Now that you know how somebody can hack your Bitcoin wallet, you should take specific measures to prevent it from happening. You can use a cold wallet instead of a hot wallet. And this is more secure because it is not on the internet. Also, be very vigilant when accessing and opening your Bitcoin wallet. Confirm that you are on the legitimate website and don’t click on suspicious links.