Bitcoin, the world’s most famous cryptocurrency, has been on a rollercoaster ride. In a recent resurgence, investors are taking matters into their own hands and working to secure their Bitcoin investments as the price of the digital currency continues to escalate.
Bitcoin has been around since 2009, but it wasn’t until 2017, when the digital currency hit an all-time high of nearly $20,000 per coin that it really gained mainstream attention. Since then, the cryptocurrency has experienced a significant level of volatility, falling sharply a few months later towards the end of 2018.
However, over the past year or so, Bitcoin has been on the rise once again, prompting investors to take matters into their own hands to secure their investments.
The first thing any investor does when they purchase Bitcoin is to store it in a digital wallet, which is essentially a secure and encrypted container for Bitcoins. However, storing Bitcoin wallets online is risky, because they can be vulnerable to hackers.
To combat this issue, investors are turning to hardware wallets that offer an added layer of security. Hardware wallets are digital wallets that store investor’s Bitcoins offline, away from the prying eyes of hackers. This means that investors are the only ones who can access their Bitcoins when they need to.
Another way investors are protecting their investments is by using multi-signature wallets. Multi-signature wallets require more than one person to authenticate a transaction, which means that any unauthorized access attempts are thwarted.
Due to Bitcoin’s decentralized nature, hackers have also been known to attack Bitcoin exchanges, and get away with large amounts of digital currency. To combat this, investors are moving away from centralized exchanges and are instead turning to decentralized exchanges that operate on blockchain technology.
Bitcoin owners are also turning to insurance to protect their investments. The first Bitcoin insurance policy was launched in the United Kingdom in 2019. This insurance policy is designed to cover Bitcoin holdings against losses due to cyberattacks, hacks, or theft.
In conclusion, Bitcoin investors are taking matters into their own hands, and are working to secure their investments to ensure that they don’t lose their hard-earned digital assets. By utilizing hardware wallets, multi-signature wallets, decentralized exchanges, and insurance policies, Bitcoin owners are taking the necessary steps to secure their futures. With Bitcoin’s price predicted to continue to rise, it’s more important than ever for investors to ensure that their investments are secure.