Security in Crypto - Safely navigate the Crypto Space

Navigating the world of cryptocurrency can be an intimidating task if you are not taking the correct security precautions.

In these articles, we take a dive into what some of the risks that can happen to a blockchain, like a 51% attack when a single entity takes control of the majority of the blockchain power and can modify the rules to their own benefit (like reversing transactions). We also teach you about Sybil attacks, which are attacks against peer-to-peer networks in which a single entity creates many fake identities to gain an advantage in the network.

Bitstamp also teaches you about security precautions (like two-factor authentication and whitelisting), or how to safeguard your crypto using a multisignature (also known as multisig) wallet. If you’re unfamiliar, multisig wallets require more than one private key to sign and authorize a crypto transaction.

Bitstamp’s guides keep you safe when navigating the ecosystem.

Posts

Crypto Security Precautions

Even seasoned crypto enthusiasts can fall victim to online scams and hacks - here are some crypto security precautions you can take to help stay safe online.

Cryptocurrency Scams and Fraud Prevention

Scams and fraud are an unfortunate reality in cryptocurrency. By learning what to look for, users can better protect themselves and their funds.

How is decentralized consensus achieved?

Decentralized networks like Bitcoin, Litecoin, Ethereum or Bitcoin Cash have no central authority that would validate their crypto transactions or safeguard their records.

How private is the blockchain?

Maintaining privacy in the digital world is getting more and more difficult nowadays. Internet giants have made it their mission to gather as much data on their users as possible. There are even companies whose sole purpose is to collect user data, with or without consent, and sell it on to others.

How to use Ledger wallet?

Learn how to use Ledger’s hardware wallets to self-custody your cryptocurrency holdings.

Know Your Customer (KYC)

Know Your Customer (KYC) is the process used by financial companies to identify clients and establish the risks of doing business with them.

Trustlessness and security on blockchain

When you buy something, you rely on someone to authorize that you’ve paid for the product or service. In traditional exchanges, this someone is a third party who enjoys the trust of everyone involved in the transaction.

What are blockchain consensus rules?

One of the difficulties that distributed blockchain networks face is reaching an agreement on which transactions are legitimate, which blocks are valid and which chain is longest. To solve this problem, each blockchain implements a series of consensus rules to which every user, or node, must adhere.

What are blockchain policy rules?

Blockchain policy rules refer to configuration options that modify the behavior of nodes. Each node can set its own rules to serve its individual interests.

What are Multi-Party Computation (MPC) Wallets?

Multi-party computation (MPC) is a cryptographic protocol that enables multiple parties to compute a single function based on their individual inputs without any input being revealed to the other parties. MPC wallets are a practical implementation of MPC technology, offering benefits such as security and efficiency of fund transfer.

What are private and public keys?

Digital currencies like bitcoin or ether (Ethereum) are not called cryptocurrencies without good reason. Having no physical form and no central authority to verify transfers and ownership of coins, the functionality of cryptocurrencies fundamentally depends on cryptography.

What are vulnerable smart contracts?

Vulnerable smart contracts have technical weaknesses of various types that can be exploited by attackers to steal funds or data.

What is a 51% attack?

A 51% attack (also referred to as a majority attack or a double-spend attack) is a potential attack on blockchains that are created through the process of mining.

What is a MultiSig wallet?

A MultiSig wallet is a digital wallet that operates with multisignature addresses. This means that it requires more than one private key to sign and authorize a crypto transaction or, in some cases, that several different keys can be used to generate a signature.

What is a Sybil attack?

A Sybil attack is an attack against peer-to-peer networks in which a single attacker creates many fake identities to gain an advantage in the network. Other users do not recognize these identities as fictitious, which gives the attacker a disproportionately large influence over the network.

What is anti-money laundering law? (AML)

Anti-money laundering is a general term encompassing the laws, regulations, and procedures in place to prevent criminals from disguising money obtained through illicit means.

What is blockchain immutability?

Blockchains using proof of work are often referred to as immutable ledgers: everything written in such a blockchain is there to stay. It is impossible to alter or replace that information. But is it really impossible to enforce changes in a blockchain, to change the history of transactions and redistribute coins? The simple answer is: it’s not impossible, just very, very difficult.

What is phishing?

Phishing is an online attack where malicious actors send messages to victims pretending to be a trusted person or company.

Security

Posts

About

Legal & privacy

Products

Services

Resources

Address

Contact