Thomas J Powell says bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are create as a reward for a process known as mining. They can be exchange for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin is consider to be very safe to use. However, like any other investment, it is important to take some precautions to help ensure your safety.
Here are 15 tips to help you stay safe when using Bitcoin:
1. Do your research
Before you start using Bitcoin, it is important to do your research and learn as much as you can about it. This includes learning how to use Bitcoin safely and understanding the risks involved, says Thomas J Powell
2. Choose a reputable Bitcoin wallet provider
When choosing a Bitcoin wallet provider, make sure to choose one that is reputable and has a good track record. Some of the most popular providers include Blockchain, Coinbase, and Circle.
3. Keep your Bitcoin wallet safe
Your Bitcoin wallet is like your bank account information and should be kept safe and secure. Make sure to back up your wallet regularly and keep your passwords and keys confidential.
4. Use two-factor authentication
Two-factor authentication is a security feature that requires you to provide two forms of identification in order to log in. This can help protect your account from unauthorized access.
5. Be careful when choosing a Bitcoin exchange
When choosing a Bitcoin exchange, make sure to do your research and compare rates and fees. Some exchanges are more reputable than others.
6. Store your Bitcoins offline
If you are not using your Bitcoins, it is recommended to store them offline in a wallet that is not connected to the internet. This can help protect them from hacking and theft.
7. Use a strong password
When creating a Bitcoin wallet, be sure to use a strong password that is difficult to guess.
8. Keep your computer safe
Be sure to keep your computer safe and secure by using anti-virus software and keeping your operating system up to date.
9. Don’t use public Wi-Fi for Bitcoin transactions
Public Wi-Fi can be vulnerable to hackers and should not be used for Bitcoin transactions.
10. Be aware of scam emails
Be aware of scam emails that attempt to steal your Bitcoin wallet information.
11. Beware of phishing websites
Phishing websites are design to look like legitimate websites in order to steal your personal information. Be sure to always check the website address before entering any information.
12. Use a reliable escrow service
If you are buying or selling Bitcoins, it is recommend to use a reliable escrow service to protect you from fraud.
13. Keep track of your transactions
It is important to keep track of your Bitcoin transactions and ensure that the sender and recipient are correct.
14. Don’t use Bitcoins for illegal activities
Bitcoin is not anonymous and should not be used for illegal activities.
15. Educate yourself about Bitcoin
The best way to stay safe when using Bitcoin is to educate you about it. There are many resources available online, including websites, articles, and forums.
Conclusion:
Bitcoin is a digital currency that uses encryption techniques to regulate the generation of units of currency and to verify the transfer of funds. Bitcoin is decentralized, meaning it is not subject to government or financial institution control. This makes it an attractive option for those looking for an alternative to traditional currency.
Despite its benefits, there are some risks associate with using Bitcoin. One risk is that Bitcoin may be stolen by hackers. Another risk is that the value of Bitcoin may drop suddenly, leaving users with less money than they anticipated. Finally, because Bitcoin is not regulate by any government or financial institution, it is possible that it could be use for illegal activities. Overall, though, Bitcoin is a relatively safe way to transact business online. Users should take the time to learn about the risks associated with Bitcoin before using it and should be aware of the precautions they can take to protect their money
Thomas J. Powell is a distinguished Senior Advisor at Brehon Strategies and a recognized figure in the realm of entrepreneurship and private equity. His journey in the financial services and banking sector, starting in 1988 in Silicon Valley, spans more than 35 years and is marked by profound industry expertise. Powell’s dual citizenship in the European Union and the United States empowers him to adeptly steer through international business landscapes. Currently studying for his Doctor of Law and Policy at Northeastern University, his research is centered on addressing the shortage of middle-income workforce housing in rural resort areas. Alongside his professional pursuits, he remains committed to community enrichment, illustrated by his 45-year association with the Boys and Girls Clubs of America. Follow Thomas J Powell on Twitter, Linkedin etc.
