How to Secure Your Bitcoin Wallet

Like in real life, your wallet must be secured. Bitcoin makes it possible to transfer value anywhere in a very easy way and it allows you to be in control of your money. Such great features also come with great security concerns. At the same time, Bitcoin can provide very high levels of security if used correctly. Always remember that it is your responsibility to adopt good practices in order to protect your money.

 Be careful with online services

You should be wary of any service designed to store your money online. Many exchanges and online wallets suffered from security breaches in the past and such services generally still do not provide enough insurance and security to be used to store money like a bank. Accordingly, you might want to use other types of Bitcoin wallets. Otherwise, you should choose such services very carefully. Additionally, using two-factor authentication is recommended.

Small amounts for everyday uses

A Bitcoin wallet is like a wallet with cash. If you wouldn't keep a thousand dollars in your pocket, you might want to have the same consideration for your Bitcoin wallet. In general, it is a good practice to keep only small amounts of bitcoins on your computer, mobile, or server for everyday uses and to keep the remaining part of your funds in a safer environment.

Backup your wallet

Stored in a safe place, a backup of your wallet can protect you against computer failures and many human mistakes. It can also allow you to recover your wallet after your mobile or computer was stolen if you keep your wallet encrypted.

Backup your entire wallet

Some wallets use many hidden private keys internally. If you only have a backup of the private keys for your visible Bitcoin addresses, you might not be able to recover a great part of your funds with your backup.

Encrypt online backups

Any backup that is stored online is highly vulnerable to theft. Even a computer that is connected to the Internet is vulnerable to malicious software. As such, encrypting any backup that is exposed to the network is a good security practice.

Use many secure locations

Single points of failure are bad for security. If your backup is not dependent of a single location, it is less likely that any bad event will prevent you to recover your wallet. You might also want to consider using different medias like USB keys, papers and CDs.

Make regular backups

You need to backup your wallet on a regular basis to make sure that all recent Bitcoin change addresses and all new Bitcoin addresses you created are included in your backup. However, all applications will be soon using wallets that only need to be backed up once.

Encrypt your wallet

Encrypting your wallet or your smartphone allows you to set a password for anyone trying to withdraw any funds. This helps protect against thieves, though it cannot protect against keylogging hardware or software.

Never forget your password

You should make sure you never forget the password or your funds will be permanently lost. Unlike your bank, there are very limited password recovery options with Bitcoin. In fact, you should be able to remember your password even after many years without using it. In doubt, you might want to keep a paper copy of your password in a safe place like a vault.

Use a strong password

Any password that contains only letters or recognizable words can be considered very weak and easy to break. A strong password must contain letters, numbers, punctuation marks and must be at least 16 characters long. The most secure passwords are those generated by programs designed specifically for that purpose. Strong passwords are usually harder to remember, so you should take care in memorizing it.

Offline wallet for savings

An offline wallet, also known as cold storage, provides the highest level of security for savings. It involves storing a wallet in a secured place that is not connected to the network. When done properly, it can offer a very good protection against computer vulnerabilities. Using an offline wallet in conjunction with backups and encryption is also a good practice. Here is an overview of some approaches.

Offline transaction signing This approach involves having two computers sharing some parts of the same wallet. The first one must be disconnected from any network. It is the only one that holds the entire wallet and is able to sign transactions. The second computer is connected to the network and only has a watching wallet that can only create unsigned transactions. This way, you can securely issue new transactions with the following steps.

1. Create a new transaction on the online computer and save it on an USB key.
2. Sign the transaction with the offline computer.
3. Send the signed transaction with the online computer.

Because the computer that is connected to the network cannot sign transactions, it cannot be used to withdraw any funds if it is compromised. Armory can be used to do offline transaction signature.

Hardware wallets Hardware wallets are the best balance between very high security and ease of use. These are little devices that are designed from the root to be a wallet and nothing else. No software can be installed on them, making them very secure against computer vulnerabilities and online thieves. Because they can allow backup, you can recover your funds if you lose the device.

Keep your software up to date

Using the latest version of your Bitcoin software allows you to receive important stability and security fixes. Updates can prevent problems of various severity, include new useful features and help keep your wallet safe. Installing updates for all other software on your computer or mobile is also important to keep your wallet environment safer.

Multi-signature to protect against theft

Bitcoin includes a multi-signature feature that allows a transaction to require multiple independent approvals to be spent. This can be used by an organization to give its members access to its treasury while only allowing a withdrawal if 3 of 5 members sign the transaction. Some web wallets also provide multi-signature wallets, allowing the user to keep control over their money while preventing a thief from stealing funds by compromising a single device or server.

Think about your testament

Your bitcoins can be lost forever if you don't have a backup plan for your peers and family. If the location of your wallets or your passwords are not known by anyone when you are gone, there is no hope that your funds will ever be recovered. Taking a bit of time on these matters can make a huge difference.

How Cryptocurrency Mining Works: Bitcoin vs. Monero

Ever wondered why websites that are mining in the background don’t mine for the immensely hot Bitcoin, but for Monero instead? We can explain that. As there are different types of cryptocurrencies, there are also different types of mining. After providing you with some background information about blockchain, and cryptocurrency, we’ll explain how the mining aspect of Bitcoin works. And how others differ.

Proof-of-Work mining

Cryptocurrency miners are in a race to solve a mathematical puzzle, and the first one to solve it (and get it approved by the nodes) gets the reward. This method of mining is called the Proof-of-Work method. But what exactly is this mathematical puzzle? And what does the Proof-of-Work method involve? To explain this, we need to show you which stages are involved in the mining process:

1. Verify if transactions are valid. Transactions contain the following information: source, amount, destination, and signature.
2. Bundle the valid transactions in a block.
3. Get the hash that was assigned to the previous block.
4. Solve the Proof-of-Work problem (see below for details).

The Proof-of-Work problem is as follows: the miners look for a SHA 256 hash that has to match a certain format (target value). The hash will be based on:

• The block number they are currently mining.
• The content of the block, which in Bitcoin is the set of valid transactions that were not in any of the former blocks.
• The hash of the previous block.
• The nonce, which is the variable part of the puzzle. The miners try different nonces to find one that results in a hash under the target value.

So, based on the information gathered and provided, the miners race against each other to try and find a nonce that results in a hash that matches the prescribed format. The target value is designed so that the estimated time for someone to mine a block successfully is around 10 minutes (at the moment).

If you look at BlockExplorer.com, for example, you will notice that every BlockHash is 256 hexadecimal digits long and starts with 18 zeroes. For example the BlockHash for Block #497542 equals 00000000000000000088cece59872a04457d0b613fe1d119d9467062e57987f1. At the time of writing, this is the target—the value of the hash has to be so low that the first 18 digits are zeroes. So, basically, miners have some fixed input and start trying different nonces (which must be an integer), and then calculate whether the resulting hash is under the target value.

How is Monero different?

Browser mining and other methods of using your system’s resources for other people’s gain is usually done using other cryptocurrencies besides Bitcoin, and Monero is the most common one. In essence, Monero mining is not all that different from Bitcoin. It also uses the Proof-of-Work method. Yet, Monero is a popular cryptocurrency to those that mine behind the scenes, and we’ll explain why.

Anonymity

The most notable difference between Bitcoin and Monero mining is anonymity. Where you will hear people say that Bitcoins are anonymous, you should realize that this is not by design. If you look at a site like BlockExplorer, you can search for every block, transaction, and address. So if you have sent or received Bitcoin to or from an address, you can look at every transaction ever made to and from that address.

Therefore we call Bitcoin “pseudononymous.” This means you may or may not know the name of that person, but you can track every payment to and from his address if you want. There are ways to obfuscate your traffic, but they are difficult, costly, and time-consuming.

Monero however, has always-on privacy features applied to its transactions. When someone sends you Monero, you can’t tell who sent it to you. And when you send Monero to someone else, the recipient won’t know it was you unless you tell them. And because you don’t know their wallet address and you can’t backtrack their transactions, you can’t find out how “rich” they are.

                                                                                      Transactions inside a Bitcoin block are an open book.

Mining

Monero mining does not depend on heavily specialized, application-specific integrated circuits (ASICs), but can be done with any CPU or GPU. Without ASICs, it is almost pointless for an ordinary computer to participate in the mining process for Bitcoin. The Monero mining algorithm does not favor ASICs, because it was designed to attract more “little” nodes rather than rely on a few farms and mining pools.

There are more differences that lend themselves to Monero’s popularity among behind-the-scenes miners, like the adaptable block size, which means your transactions do not have to wait until they fit into a later block. The Bitcoin main-stream blockchain has a 1 MB block cap, where Monero blocks do not have a size limit. So Bitcoin transactions will sometimes have to wait longer, especially when the transaction fees are low.

The advantages of Monero over Bitcoin for threat actors or website owners are mainly that:

• It’s untraceable.
• It can make faster transactions (especially when they are small).
• It can use “normal” computers effectively for mining

Links

For those of you looking for more information on the technical aspects of this subject, we recommend:

Bitcoin block hashing algorithm

The Blockchain Informer

Blockchain Info

How Bitcoin mining works

How does Monero privacy work

Does Your Computer Have a Virus? 10 Signs It Might!

The symptoms of your latest illness could be indicative of a number of different health issues. Similarly, a computer virus can throw up symptoms which could be indicative of a range of different problems. While each symptom on its own may not trigger any red flags, a handful of unexpected behaviors may set off alarm bells — if you know what to look out for. Here are some telltale signs that your PC has a computer virus. If you have any doubts, contact our experts for a free consultation!

1. Your Browser Starts Misbehaving

Popups were the scourge of the mid-2000s. The incredibly irritating screen hogs were often associated with internet Explorer, and became synonymous with malware lurking on your computer. Of course, these days a popup may just be a particularly annoying advert. However, if you are getting popups even when your browser isn’t open, then it might be a sign that all is not well. Many of these malicious popups will be for fake antivirus software or alerts that your machine is infected.

https://twitter.com/pcrisk/status/844897831576055808

Popups aren’t the only indicator of concealed malware. If you find unexpected toolbars cluttering your browser, that’s often evidence something’s amiss. Most browsers allow you to search from the address bar, and it often defaults to Google. If your search provider has suddenly changed, or your Google search results look unusual, then you can be fairly certain you have an unwelcome intruder.

2. Your Antivirus Is Disabled

If someone wanted to break into your home, then one of the best ways of entering undetected would be to deactivate your home security system. The same is true of a computer virus. Some forms of malware are able to disable your antivirus software’s service, giving it unfettered access to your device. If the service is disabled, or your preferred antivirus software is unable to update, then it’s time to start battling the infection.

3. Your PC Has Slowed to a Crawl

There are many reasons why your PC’s performance may slip over time. You should eliminate all the main suspects — including memory hogs like Chrome — and check that all your hardware is in good working order. If you find everything to be functioning as expected, but your device is still slowing down, then it’s a good indicator of a malware infection. Malware can run applications and services in the background that clog up your computer, and can have an incredibly detrimental affect on your computer’s performance.

4. Your Files Are Disappearing

In recent years, one of the most devastating trends has been the rise of ransomware. This infection encrypts all your files, putting them beyond reach. The only way to unlock them is to pay the ransom, often in Bitcoin, but without a guarantee that they will be unlocked. The time between infection and encryption is often short, so the best defense is backing up your files regularly.

The best advice if you become infected with ransomware is to not pay the ransom. Other forms of malware can also lead to your files going errant. This can often be harder to detect, as you probably only notice once you need to open the file. However, if large chunks of data are missing then you should start scanning for a computer virus.

5. You Have Trouble Connecting to the Internet

If you suffer from poor network connectivity, then errors connecting to the internet are probably a regular occurrence for you. However, if they start fairly suddenly, or in conjunction with any other unusual behavior, then it may well be a symptom of a viral infection. You may think it seems strange that the virus would want to block your connection to the internet.

https://twitter.com/brnnbrn/status/385576492551258112

However, some malware changes your network settings to add a proxy and block your access to the internet to prevent you downloading tools to remove the infection. The best way to tackle this type of attack is to download a malware removal tool like Malwarebytes on another computer and transfer it to the infected machine via USB.

6. Programs Are Crashing All the Time

Programs can crash for a whole host of reasons which often have nothing to do with malware. Fortunately, there are plenty of ways that you can close the offending app and get back to enjoying your day. If the regular troubleshooting steps don’t make an impact, then there’s a high probability that malware has something to do with it. If you have been experiencing the Blue Screen of Death (BSOD) with alarming frequency, then make note of the error code. Sometimes, Windows freezes up and hangs without much of an explanation.

Often the BSOD can be caused by hardware issues, but if investigation comes up empty, then there’s a good chance that a computer virus may be to blame.

7. New Programs Appear Unexpectedly

While flicking through your installed programs, you unearth a few that you really can’t remember having installed. There’s a chance that these came from dubious but legitimate installers. However, if they have suddenly appeared and you are confident you didn’t install them by mistake, then it could indicate an infection. Your antivirus normally identifies these as Potentially Unwanted Programs (PUPs) and will alert you to them. If you haven’t seen a notification from your security software, consider running a manual scan Clicking "next" repeatedly is the quickest way of installing apps on Windows - until you find you installed other programs on your computer without realizing it, thanks to OpenCandy. 

If nothing is found, then perform an internet search to see if anyone else has reported that application as a PUP.

8. You Can’t Access Windows Utilities

When something goes awry on our Windows computer, the first thing we reach for is Ctrl + Alt + Del — only this time, you find that nothing happens. You attempt to right click on the taskbar to open Task Manager instead. Still nothing. Maybe opening it from the start menu will help? No luck there either.

You try to open Control Panel, and even Command Prompt to no avail. It’s almost as if there is something preventing you from opening these Windows utilities — and it’s quite likely there is.

9. Your Hard Drive Is Out of Control

https://twitter.com/twainrichardson/status/923699506469781504

Last week you had a sizable 30 percent free space on your hard drive. Now, you have less than 5 percent. You haven’t downloaded any large files, or installed any new software, so where is this data coming from? The most likely answer is that malware is downloading files and storing them on your hard drive. Another indicator is excessive hard drive activity.

Alarm bells should be ringing if you aren’t running any programs, or accessing files and your hard drive is showing a lot of activity and getting a little on the warm side.

10. Your Accounts Are Sending Spam

If you’ve received an accusatory message from a friend asking why you would recommend them weight loss pills, you should be on high alert. Odd messages like these indicate the presence of malware — so long as you didn’t send these messages as a form of misguided advice. Viruses are designed to spread, and one incredibly effective way is to bombarded your friends and contacts.

https://twitter.com/Oakleef1/status/927152687354990592

Most people are now accustomed to ignoring messages about magical pills and surprise inheritances, however, the viruses are maturing. Phishing is more commonplace than these overt examples of spam, where the recipient is tricked into opening a malicious link or attachment. This is a very effective means of spreading the computer virus as people are often more trusting of messages and emails from people they know. Catching a phishing email is tough! Scammers pose as PayPal or Amazon, trying to steal your password and credit card information, are their deception is almost perfect. 

It’s Oh So Quiet

Everything we’ve described so far has been a visible symptom of an infection. However, not all malware, particularly sophisticated variants, will intentionally disguise themselves. This makes detection almost impossible. As the saying goes: “absence of evidence is not evidence of absence.”

Unfortunately all our digital devices misbehave from time to time. This means random app crashes or unexpected behaviour can be entirely unrelated to a malware outbreak. However, if after following common troubleshooting steps you still come up empty, then these symptoms can be a sign that you may have been infected:

• Browser malfunctions and misbehaviours
• Problems with your antivirus or security software
• Sudden or unexpected device slowdown
• Missing files
• Internet connectivity issues
• Frequent and unexplained program crashes
• Potentially unwanted programs (PUPs)
• Inability to access common Windows utilities
• Unexplained hard drive activity
• Spam originating from your email or social accounts

Viruses and other forms of malware are almost unavoidable these days. While Windows has traditionally been platform of choice for malware, Mac users beware: you are at risk too. The best you can do is be prepared and take sensible precautions.

Always run an antivirus — even on your smartphone. Maintain regular backups so that if the infection is too hard to remove you can start over with minimal impact. Downloading apps from free software sites can be a dangerous game, so be sure to stick to reputable sites. The internet is full of incredible content, but it pays to know what’s behind the link before you make that click.

7 Crucial Cyberattacks & Threats That Are Putting Your Small Business in Danger

By 2019, it’s predicted that the cost of damages caused by cybercrimes and attacks on both big and small businesses will reach an incredible $2 trillion. This is a huge sum of money, and when it comes specifically to small business owners, these kinds of attacks can ruin everything that you’ve worked so hard to build. This is why it’s so important for you to be aware of the threats that are out there, so you can learn to deal with them and protect your business. To keep you in the know, here are seven common and dangerous attacks to have on your radar.

If you want to ensure your small business is safe, contact one of our security experts for a free security audit!

Ransomware Attacks

These are some of the most increasingly common cyberattacks affecting systems and organizations around the world, such as the recent attacks on the National Health Service in the United Kingdom. In these attacks, ransomware infects a computer network and shuts off access, holding data and systems for ransom.

The network will remain this way until the set ransom is paid, usually by an untraceable bank transfer or bitcoin payment. To add more risk, there is usually a time limit for payment, and the threat that files may start to be deleted until the ransom is paid.

Malware

Malware stands for “malicious software” and is a form of software that can infiltrate a computer system and carry out certain tasks.

Some of these tasks include deleting and uploading files, gathering or harvesting personal files and information stored on the computer, recording keystrokes from the keyboard, accessing the user’s webcam remotely, disabling firewall and other security settings, sending spam email and so on.

From a small business perspective, this can be very damaging to your reputation, and in some cases, you may not even be aware that the damage is taking place.

Phishing Scams

Phishing is easily one of the most common kinds of cyberattacks, and it can affect everyone, from average internet users to global corporations. Phishing works by sending fake emails, text messages, social media posts or other messages or even setting up phony websites that look authentic.

“Then, the user will input their personal information into these pages which then links the data back the hacker. Of course, if this data is login information or bank details, a lot of damage can be caused to your business,” explains Charles Reyes, a security manager and Huffington Postcontributor.

Insider Attacks

One aspect of hacking you mustn’t overlook is the one from an inside job. If someone is leaving your business, or you’ve fired them, be aware of what they are doing on their last day and how they may access and misuse your information.

An insider attack could steal customer data; could change content on your website and more. Make sure, in the event that someone leaves or is fired, their access to your systems is revoked as soon as possible.

Brute Force Attacks

These are attacks that do exactly what the title suggests. Say your small business servers are protected by a password. There is software out there that can continuously attempt to log into your servers by trying every single password combination possible, which is why it’s known as brute force.

These are quite long-winded processes, and there are many different forms and setups, but you can easily protect your business by choosing a long password (like a positive phrase or sentence) and minimize the number of entry attempts possible.

Distributed Denial of Service (DDoS)

DDoS attacks are used frequently by hacking groups like Anonymous and can be implemented to bring down and limit access to some of the most protected, globally operating businesses in the world.

Let’s say that your small business website can cater to 100 users safely and adequately. A bad actor can use software which mimics access by 100 users, thereby bringing your servers to full capacity. Now, if you’ve got 10 hackers mimicking hundreds of people, that’s 1,000 users, and your servers will surely be taken offline.

Now consider the fact that a single piece of software can mimic millions of users, it’s easy to see why these attacks are so feared. The best way to protect yourself from these attacks is to keep your server software updated at all times and monitor your bandwidth to see incoming spikes of traffic.

Keylogging Attacks

This is one of the simplest forms of attack but by far one of the most damaging. A keylogger program can be small enough to be stored on a USB stick or sent through an email as an attachment, usually hidden as something else that you’ll want to click on, such as a document or music file.

Then, once active, the software will log every single key that you press and send this information to the hacker remotely. This can log bank details, login details and other important information that your business might be dealing with.

As you can see, there’s a lot of potential danger out there that can threaten your small business. With all this mind, it’s easy to see why you need to keep your systems up to date, your security provider updated and your wits about you.

What is Blockchain Technology?

From a cruising altitude, a blockchain might not look that different from things you're familiar with, say Wikipedia. With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Wide Web (WWW) using a client-server network model.

A user (client) with permissions associated with its account is able to change Wikipedia entries stored on a centralized server.

Whenever a user accesses the Wikipedia page, they will get the updated version of the 'master copy' of the Wikipedia entry. Control of the database remains with Wikipedia administrators allowing for access and permissions to be maintained by a central authority.

Wikipedia's digital backbone is similar to the highly protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.

The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and important feature of blockchain technology.

Wikipedia's 'master copy' is edited on a server and all users see the new version. In the case of a blockchain, every node in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.

Transactions are broadcast, and every node is creating their own updated version of events.

It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.

Yet, blockchain technology, for all its merits, is not a new technology.

Rather, it is a combination of proven technologies applied in a new way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto's idea so useful.

The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, simple, yet robust network architecture of blockchain technology itself.

Defining digital trust

Trust is a risk judgement between different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).

Put more simply, we want to know, 'Are you who you say you are?' and 'Should you be able to do what you are trying to do?'

In the case of blockchain technology, private key cryptography provides a powerful ownership tool that fulfills authentication requirements. Possession of a private key is ownership. It also spares a person from having to share more personal information than they would need to for an exchange, leaving them exposed to hackers.

Authentication is not enough. Authorization – having enough money, broadcasting the correct transaction type, etc – needs a distributed, peer-to-peer network as a starting point. A distributed network reduces the risk of centralized corruption or failure.

This distributed network must also be committed to the transaction network’s recordkeeping and security. Authorizing transactions is a result of the entire network applying the rules upon which it was designed (the blockchain’s protocol).

Authentication and authorization supplied in this way allow for interactions in the digital world without relying on (expensive) trust. Today, entrepreneurs in industries around the world have woken up to the implications of this development – unimagined, new and powerful digital relationshionships are possible. Blockchain technology is often described as the backbone for a transaction layer for the Internet, the foundation of the Internet of Value.

In fact, the idea that cryptographic keys and shared ledgers can incentivize users to secure and formalize digital relationships has imaginations running wild. Everyone from governments to IT firms to banks is seeking to build this transaction layer.

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.