Security Risks

"Bitcoin functions much like cash: once a payment is sent, it cannot be reversed, and stolen coins cannot normally be recovered. A person can lose bitcoin by exposing a private key, allowing hackers to enter an Internet-connected hot wallet, or forgetting the password or losing the key to an offline cold wallet. Strong passwords, two-factor authentication, cold storage for long-term holdings, multisignature wallets, and custodial services can reduce these risks, although custodial services reintroduce costs and dependence on trusted third parties."