Crypto, Blockchain, DLT

[gfp927z]

>>> 6.Guarding your bitcoins.



https://www.thestreet.com/story/14229944/7/bitcoin-s-humongous-returns-are-luring-mainstream-investors-here-s-what-you-need-to-know.html



For investors who buy bitcoins, it's critical they take steps to safeguard them. Bitcoins in exchange accounts are not FDIC or SIPC protected. Leaving bitcoins in a digital account on an exchange could be risky if the site crashed, went bankrupt or got hacked.

In 2014, Mt. Gox bitcoin exchange filed for bankruptcy after claiming it had been hacked and that thieves made off with hundreds of thousands of bitcoins. A trial began in Tokyo this week against the former head of Mt. Gox, Mark Karpeles, who faces charges of embezzlement and creating unauthorized records.

"Never keep a large dollar amount at a bitcoin/ethereum exchange," said Barski. "There are still high risks for hacks."

So, experts recommend investors move the bitcoin keys to a digital wallet on their computers, which involves installing a cryptocurrency wallet on their computer and making sure the computer is protected by anti-malware protection.

To be even safer, the investor could purchase "hardware wallets," such as Trezor wallet or Ledger Nano wallet, which are USB-sized devices that safeguard the bitcoin private keys offline. "If you follow these steps, you can sleep comfortably," said Barski, "Knowing that if an exchange is hacked or goes bankrupt, your funds will remain safe." <<<