Cryptocurrencies, despite their decentralized and immutable features, are still prone to hacks from cyber criminals as well as scam. Notably, in the crypto world, there has been various hacks occurred resulting in billions of losses within the community. The three worst hacks in the history of crypto are those happened to Mt. Gox in 2011 and 2014, Bitfinex in 2015 and 2016 and the loss of $40 million from Binance.
Thus, it is critical not only for exchanges but for users of cryptocurrencies as well as businesses to take the initiative in making sure the safety of the crypto community. Every individual involved in the crypto community needs to play a role in keeping cryptocurrency safe, and there are a few important things to look at.
Know your exchange platforms
Spoken at Blockshow Asia 2019, Clement Ip, co-founder of Genesis Block HK said never to leave cryptocurrencies in exchange platforms. Taken from his own negative personal experience of losing all his funds due to a hack occurred to an exchange platform, Ip’s takeaway lesson was clear.
On the other hand, in the perspective of exchange platforms and businesses, keeping your data safe and well-regulated are keys to ensure the safety of your customers’ funds. The continued hacking of digital currency exchanges is a huge concern and security measures need to be tightened to provide customers with maximum protection.
Know your wallets
There are several types of cryptocurrency wallets be it hardware wallets like Ledger Nano S and Trezor, paper wallets, desktop wallets like Exodus, mobile wallets like Trust and Luno and web wallets like CoinBase. The wallets differ from being hot and cold. Cold wallets are more secured as they are offline and less likely to be hacked.
Choosing a wallet to keep your cryptocurrencies is a very important step to ensure the security of your funds, depending on what you are planning to do with your crypto. Individuals holding cryptocurrencies need to be mindful of any chosen online services as platforms connected to the internet are vulnerable and prone to hacks. Besides, using heavily encrypted passwords is another way to ensure the safety of your cryptocurrencies.
Besides, using public internet providers such as open spaces, cafes and hotels’ WiFi will also expose users to the attention of cyber criminals as the network is not secured. Thus, individuals involved in the crypto community needs to always be mindful concerning trading, investment and handling cryptocurrencies.
Last but not least, understand the very basic safety measure there is in relation to cryptocurrencies. This applies to both end-users and businesses planning to incorporate crypto in their business. Be wary of the privacy of your funds and learn the basic of investments before you jump into the crypto world. Remember, if it is too good to be true, it probably is.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.