Recently, at one of our local coffee shops, a young and energetic young man came in with a laptop and proceeded to start asking us random questions about Bitcoins and Cryptosporin. When he was done I asked him how he was able to access the Internet with such ease, that he does it all the time? How do you accomplish this? What is he talking about?
This is how do currencies work according to a group of smart hackers that call themselves Bitcoins. It goes by many names such as Cryptojacking, Digital Cash, and Smartphone Money. The group or hacker uses his/her knowledge of computer science, mathematics, software, and their collective intelligence for what they believe is best, usually for monetary purposes. Usually, but not always, they are robbing banks or stealing from the owners behind the scenes. The way they go about it is quite fascinating to say the least.
They basically break down the Encrypted Messages (Messages encoded by the computer manufacturer for security) into a series of binary codes. They then translate those codes into something that can be understood by the common human mind easily. And they encrypt that code into whatever form they need the encrypted file to be encrypted into, whether it’s a Word Document, HTML, Text file, YouTube Video, etc.
And how do currencies work once they are encrypted? Once the transaction is complete, usually through a private transfer agent, they transfer the encrypted information from their wallet/account to the necessary destination. This is where the problems begin for these thieves; if there is a balance in your account you will usually never know it was taken.
In fact, it only takes them seconds to change the password on your wallet and take off with your money! It takes the longer, less strategic plan to access your account and take the funds. Again, because of the nature of this transaction, most wallets will either require you to know the password or include it as part of the encryption process.
But what about the Transaction Fee? Transactions are supposed to be free and should never charge a fee for it. But unfortunately, Bitcoins Masters takes advantage of you and your account by increasing your transaction fees when you attempt to recover your funds after a loss. They also like to tack on a layer of “protection” by charging an additional transaction fee if you try to take back your money from their service. Seems a little shady, doesn’t it?
What can you do to avoid these unscrupulous creeps? Firstly, avoid using any site offering Bitcoins from someone that isn’t reputable. Generally speaking, the more reputable sites are going to be the ones offering a private transfer feature along with their normal transaction service. If they aren’t offering this, look for another service that is.
Secondly, consider sending your transaction fees to the Bitcoins Masters Pool instead. This is essentially where they split the transaction fee between you and the receiver (you are the receiver). This is a much better option than being stuck holding the bag for someone else’s lack of financial ethics. It’s certainly more secure than having them pre-authorize a deposit to your account.
Once you have set up your wallet, the next step is to make sure you have a cold-balance backup as well. There is a lot of possible damage that could happen when you lose your money due to a software failure or hacker attack. Make sure you have a live backup of your wallet to fall back on. This can be done with a paper copy, a memory stick or even a computer. Just ensure you have a way to restore the funds should the need arise.
One other thing to consider is that many people have been scammed out of money through Bitcoins Masters Cryptojacking. Some unscrupulous individuals have even made it a full time job by ripping others off their hard earned money. In one case, a group of gamers lost half their life savings after the owners of the website they were working had failed to keep their website running. Not a very pretty picture does it!
What can you do to protect yourself when you use Bitcoins as a medium of exchange? First of all, check that you have a live address and working email in your user account. You should also make sure you have a cold-balance backup for your account. Finally, never transmit any kind of personal or financial information over the internet using your computer.