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:
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.
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.