In today's digital age, cryptocurrencies such as Bitcoin have become a popular investment method, however, they also come with increasing risks. The theft of Bitcoin is one of the biggest concerns among investors, so how to effectively prevent the theft of Bitcoin and deal with the situation once it is stolen has become a top priority. This article will introduce you to the dangers of Bitcoin theft, preventive measures, and emergency response methods in detail from multiple angles to help you navigate the digital currency world with ease.

What to do if Bitcoin is stolen? How to effectively prevent Bitcoin theft? First of all, one thing to understand is that the wallet in the blockchain is different from the wallet we use in our daily life. The wallet we usually use is used to store money; the wallet in the blockchain is not used to store money. It is not used to hold currency assets, but is a tool used to manage keys.

Some people may disagree. You can clearly see that there are various tokens in the wallet. Why are they not used to store money?

Tokens are placed in the key. More essentially, your coins are placed on the chain. With the key, you can have the allocation rights on the chain. Even if your wallet cannot be used, as long as you know your key, you can continue to manage your assets elsewhere, and the public key can be calculated based on the private key. The key can also be used to calculate the address indirectly.

It can be seen that the private key is the most important thing to open the digital currency. It is obtained by calculating and decrypting a random number when the miner is mining. This random number decryption method is called HAS256. If you are interested, you can study this in detail. the logic of an algorithm.

The public key is calculated from the private key. This method is called elliptic curve multiplication (blockchain is a cryptographic world with too many algorithms). A big feature of this algorithm is that the process is unpredictable. In reverse, the private key can calculate the public key, but the public key cannot calculate the private key.

What about the address?

The address is also calculated from the public key, which is divided into two steps. The first step is the public key compression hash calculation, and then RIOEMD160 compilation (no more function concepts can be added, leave these to Satoshi Nakamoto) to get the address.

This is the private key, public key, and address generation process. Among them, the private key is the most important. The essence of the wallet is to manage the private key. So what does the wallet do for the security and operability of the private key?

We often see that exchanges are frequently stolen, but wallets are rarely stolen. The fact that they are both online hot wallets shows that wallets are more secure than exchanges. Generally, wallets need mnemonic phrases and keystore protection.

What is a mnemonic phrase?

During the process of creating the wallet, a mnemonic phrase will be generated and we will be able to back it up. Mnemonic words generally consist of 12 words, each word is separated by a space. These words come from a fixed vocabulary and are obtained by the private key according to a certain algorithm. Therefore, the private key and the mnemonic word The conversion between them is interoperable, and the mnemonic phrase is actually another manifestation of the private key.

Therefore, it is best to fry the mnemonic words on paper and cannot save them on the Internet, nor can they use photos. The mnemonic phrase is equivalent to the private key. If someone gets your mnemonic phrase, they can import it into the wallet and take control of the wallet. Doing so is equivalent to backing up the private key in another form.

The relationship between the private key and the mnemonic phrase is similar to that of refraction, and there is no logical or algorithmic change. The essence of the keystore is the encrypted private key. This encryption is not very complicated. It is an algorithm that integrates the wallet password and the keystore. Only the keystore cannot transfer money, and the password must be carefully used.

For example, comparing a wallet to a bank account, the corresponding contents of these five words are as follows:

Address = bank card number.

Password = bank card password.

Private key = bank card number + bank password.

Mnemonic phrase = bank card number + bank password.

keystore+password=bank card number+bank password.

So, how to prevent your digital assets from being stolen?

You may quickly think not to put your digital currency on the exchange, for example, generate a new Bitcoin address yourself, transfer your Bitcoin, and save the private key.

If you do this, saving the private key will become a problem. After all, over time, the carrier holding the private key is likely to be lost or damaged.

So, is there a way to kill two birds with one stone? It can not only ensure that your digital currency is not stolen, but also conveniently store the private key. Not to mention, there is really one, which is to design the private key of the digital currency yourself.

For example, the uncompressed private key is a 256-bit string. You can hash through Chinese pinyin and Chinese characters to generate two 128-bit strings, and merge them together to generate the private key. For example, if you use "wo xiang hui
Jia" and "I'm going to get off work", hash to generate two 128-bit strings, which together become a 256-bit private key. After the private key is generated, on the  website, Save the bitcion.sh script for generating a Bitcoin address from the private key locally, and then run the script you just saved through the Mac terminal or Windows Cmd when the network is disconnected, and then you can generate the Bitcoin address through the private key. The advantage is that firstly, no one will steal your Bitcoins. Secondly, if the tool for storing your private key is lost or damaged, you will know the method by which the private key was generated and it will be easy to restore your private key.

The essence of anti-theft is to prevent our private keys from being leaked or stolen by hackers. As long as your wallet private key is not obtained by a second person besides you, your assets are safe.

Be sure to back it up on physical media, such as pen to paper, and then store it in a safe.

Be sure to remember! Do not take screenshots or photos, and do not store them in an online environment, such as on your computer, in your mailbox, or on a network disk, to prevent them from being stolen by hackers.
Do not transfer wallet backups (mnemonic words, private keys or Keystore) in an online environment to prevent them from being intercepted by hackers. Keeping the above in mind can prevent Bitcoin theft from the source!