Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrencies are often stored in digital wallets, which are software programs that store the public and private keys needed to access and spend the cryptocurrencies. If the private key is compromised, the cryptocurrency can be stolen. Cryptocurrency exchanges and online wallets are popular targets for hackers, and there have been several large-scale thefts of cryptocurrency in recent years.
There are several steps that can be taken to protect cryptocurrencies from theft. One is to use a strong password to protect the digital wallet. Another is to use two-factor authentication, which requires a second form of identification, such as a code sent to a mobile device, to access the wallet. The cryptocurrency should also be stored in a secure location, such as a safe or a locked drawer. Finally, regular backups of the digital wallet should be made to ensure that the cryptocurrency can be restored if it is lost or stolen.
