Keeping your bitcoin safe is a task. One where you must constantly be vigilant and keep yourself up to date on possible hacks. To do this, we offer 3 separate safety tips that can keep your bitcoin safe. Bitcoin, powered by blockchain technology, as such it is intrinsically safe. Yet, you must take precautions to keep your computer uncompromised (your computer is not blockchain). For instance, on Dec. 6th, 2022, Microsoft noticed a vulnerability in their system and published an article about it, titled "DEV-0139".

What is DEV-0139, and what does it tell us about crypto safety?

DEV-0139 is a computer attack designed to infiltrate through the telegram chat. Microsoft claims that the virus targets people by joining relevant cryptocurrency groups (such as exchanges). In October 2022, the group pretended to be a separate investment company, asking for feedback on the exchange platform's fee structure. After gaining the trust of the target, sent a weaponised Excel file with the name OKX Binance & Huobi VIP fee comparision.xls.

Though at first glance it does not seem suspicious as the file itself contained data as to the fee structure of cryptocurrency exchanges. However, the file sent, is a dangerous file, it will create a macro that opens second worksheet that downloads and executes a PNG file. as it performs it's attack like this:

How to keep myself safe with Bitcoin?

The first and most important question when keeping your bitcoin safe is; "Where is your Bitcoin stored?". There are three different wallet options, each has its own advantages and disadvantages. When selecting a wallet, you have the choice between Hot Wallet Storage, Cold Wallet Storage, or Storage on a centralized non-custodial platform.

To keep yourself safe, it's important to understand how cold wallet storage is the safest. Though storing your cryptocurrency on a centralized non-custodial platform, can also be considered safe, you rely on a 3rd party. Therefore if they close down, your bitcoins close down with them.

Hot wallet storage is not considered safe from this kind of attack. That is because the attacker can compromise your computer and take access to the hot wallet storage. (Yet there are ways to keep yourself safe even with a hot wallet)

Using a Virtual Machine

A virtual machine is basically a second computer in your computer. When running a virtual machine, an attacker does not have access to the main computer from the virtual one. This is a great benefit and helped white-hat hackers get rid of and analyze viruses such as WannaCry without having to infect their own computers.

Using a Virtual Machine is extremely practical when it comes to crypto safety. That is because, when storing your wallet only on a virtual computer, it becomes inaccessible to malicious actors. That also acts as an extra safety layer for cold wallet storage.

Layer 2 Security for safe Bitcoin

The second layer of security to keep your bitcoin safe is to have a dedicated computer for your crypto. The reason is unless you're purely using a virtual machine for everyday life, hackers can compromise the underlying operating system to perform unwanted transactions. Furthermore, people connect themselves to numerous different networks, and to multiple Bluetooth devices. This keeps their wifi and Bluetooth on by default.

Open WiFi and Bluetooth channels pose great security risks, as such if you wish to keep your bitcoin safe, it's better to use a separate electronic device. This ensures that your device remains clean of any unwanted software. Furthermore, in combination with a Virtual Machine, it adds an extra layer of security. Just make sure to keep the WiFi and Bluetooth off.

Layer 3 Wallets to Keep Bitcoin Safe

To keep a bitcoin perfectly safe, even from the threat of quantum computing, it is necessary to keep your bitcoin in a wallet that was never used. This ensures that the private key did not yet sign any message on the blockchain, making it harder to hack. This ensures safety from an entirely different kind of attack. Essentially, even when using a reputable self-custodial hot wallet storage, when implementing the three aforementioned Bitcoin safety tips, the hot wallet storage becomes as safe as cold wallet storage. Furthermore, the wallet can be extracted and saved to a USB stick. This creates your own cold wallet storage from your hot wallet storage.

Conclusion

Safety in bitcoin is possible thanks to blockchain technology. However, the blockchain's resilience does not account for the weakness of the individual. You are your own bank, as such keep your banking matters safe. The 3 safety tips are: Use a Virtual Machine, Use a dedicated Crypto Device (e.g mobile/computer), and use a wallet only for one send.