Cryptocurrency News – The hacking saga continues

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One of the main threats which most of the cryptocurrency investors are facing is losing assets. As the frequency of cryptocurrency exchange hacking increases, investors are becoming more and more worried. For a while it seemed that the popular and big cryptocurrency exchanges are protected from these hacks. However, there have been some large-scale hacks which busted the myth. Moreover, many users believe that with the hacks, the cryptocurrency exchanges will become better and the frequency of attacks will actually come down. It has not happened either. That is why, investors are now pretty worried regarding their cryptocurrency investments.

The hacking saga continues:

DragonEx is the recent cryptocurrency exchange which has been hacked. While the attack was quickly detected by the cryptocurrency exchange but not before the user and platform assets were compromised. It clearly indicates that there might be some losses as well. The exchange however was clear that it will take responsibility. However, at the time it is not known how much is lost or if anything is lost. The cryptocurrency exchange is based out of Singapore. The cryptocurrency exchange has informed the legal authorities across various jurisdictions regarding this act. That is why, it is hopeful that some resolution may be reached. However, since everything is in the digital realm, it seems difficult that the legal authorities can actually help the cryptocurrency exchange with anything.

The hacking news is nothing new. In the past 1 year, there have been various high profile cryptocurrency exchange hacks. Many of them were not able to recover bulk of the money either. It clearly indicates that cryptocurrency exchange hacking is still a risk for most of the investors.

Previous hacks:

Last year, one of the most high-profile hacks occurred in the Japanese cryptocurrency exchange CoinCheck. The loss to the cryptocurrency exchange was over $ 530 million. It was concluded that the cryptocurrency exchange had not placed all the crypto assets in cold storage. It was one of the biggest cryptocurrency exchange hacks.

In this year itself, cryptocurrency exchange in New Zealand by the name of Cryptopia suffered a hacking attempt. It lost close to $ 16 million. It has recently resumed trading after the attack.

The problem is with the rising frequency of cryptocurrency hacks, investors are losing faith in cryptocurrency exchanges. There are however a few steps which you can take to secure your cryptocurrency holdings.

What can you do about it?

The best way to protect your cryptocurrency Holdings is to transfer them to cold storage. Cold storage devices hold the cryptocurrency keys. These devices are not connected to the Internet. Since these devices are not connected to the Internet, they cannot be hacked.

Similarly, if for some reason you keep your cryptocurrency Holdings in your cryptocurrency exchange account, it is advisable to enable 2-factor authentication. Similarly, you should never open your cryptocurrency exchange account through an email or from an unknown device. It will help you in avoid any kind of hacking attempt as well.

You have to always go with the marquee name exchanges and try to keep your cryptocurrency holdings at 2 to 3 different places. It will ensure that the risk is diversified.

So, if you’re thinking that the cryptocurrency exchanges are becoming more and more secure, you need to think again. The rising frequency of cryptocurrency exchange hacks indicates that otherwise.

About Priya 131 Articles
I am an IT engineer by qualification and like to explore the crypto and blockchain space in my free time.

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