The crypto exchange is probably the biggest surprise of the 21st century initiated by blockchain technology. Five decades back, we could not even think of digital coins as a prime solution to currency exchange and efficiency to initiate easy transactions.
However, nowadays, it’s super easy to exchange digital coins, including btc to usdt. Transactions are important to roll the market again and again. However, the fluidity of the flow is also crucial.
Whether you are a crypto enthusiast or a random investor, you will need to understand the market’s current situation.
Crypto trading is very popular right at this moment and you can understand that if you research the market. Digital currencies like Bitcoin, Altcoins, and Ethereum come forward with extreme popularity.
Well, understanding the market is not enough until you understand the market threats. It’s not just about popularity or trust, but it is also about security. You will not be able to sleep well until you are sure about your investments and safe opportunities.
Blockchain is claimed to be the safest option in the exchange market. Considering the anonymity it provides, you will be easily convinced about its security. But it’s not completely safe. Nothing in the digital world is safe, and there is always a concern. It’s a continuous process.
But you will always get a solution to it quickly.
Crypto Exchange Hacks
Cryptocurrency exchanges have become a popular target for hackers due to the vast amount of money involved in the crypto industry.
Unfortunately, there have been several major cryptocurrency exchange hacks in recent years that have resulted in the loss of millions of dollars worth of cryptocurrencies.
Here, we will try to discuss some of the biggest crypto exchange hacks that have occurred and provide insights on how you can protect your crypto assets to stay safe.
Whether you are a novice or an experienced crypto trader, it’s important to be aware of the potential risks associated with crypto exchanges and the steps you can take to mitigate them.
Ronin Network
In March 2022, the crypto world experienced the largest cryptocurrency hack!
Considerably, a North Korean hacking group attacked the game-focused Ronin Network exchange. They stole almost $615 in the Ethereum and USDC stablecoin cryptocurrencies.
They have created a prime example of key thefts through this hack.
Poly Network
In August 2021, the world saw a vulnerability of crypto exchange in the Poly Network software. The loss was worth $611 million!
However, this time, the hacker took the risk of hacking just to see if it was possible or not. So, he returned all the money eventually.
Ftx
Another disaster happened in 2022 again. The FTX hack is one of the most scandalous hacks in the crypto world. It was a $600 million hack and the first FTX hack.
On the same date, the FTX exchange declared bankruptcy.
Binance
It is one of the most high-profile crypto hacks that traders will remember forever. The hackers directly targeted the Binance exchange in October 2022.
It was a $570 million loss for the exchange. To make it practical, the hackers exploited the BSC Token Hub cross-chain bridge.
Coincheck
This happened in Tokyo in 2018. You can consider it as the earliest Coincheck hack comparatively.
They have stolen a total of $534 million in NEM coins. However, Coincheck considered its own capital to repay the amounts of the stolen account holders.
Types Of Cryptocurrency Hacks
Cryptocurrency hacks have become a major concern in the crypto industry, with millions of dollars worth of digital currencies being lost due to various types of hacks. Understanding the types of cryptocurrency hacks is crucial for ensuring the safety of your crypto assets.
Here, we will focus on the most common types of cryptocurrency hacks, including bridge attacks, exchange hacks, and wallet hacks.
By understanding these types of hacks, you can take the necessary precautions to protect your crypto assets and stay safe in the crypto world.
Bridge Attacks
In a bridge attack, hackers target the process of transferring currency between different blockchains. They exploit vulnerabilities in the bridge, which is a software or platform that enables the transfer of assets from one blockchain to another.
Once they gain access, they can steal the currency being transferred. Bridge attacks are becoming increasingly common and are a major concern for traders and investors in the crypto industry.
It’s important to take necessary precautions to prevent such attacks and keep your crypto assets safe.
Exchange Hacks
Coin exchanges are often targeted by hackers due to the large amount of cryptocurrency they hold. As a result, it’s crucial for crypto owners to be aware of the potential risks associated with using exchanges.
This can include researching the exchange’s security features, using strong passwords and two-factor authentication. Only keep a small amount of cryptocurrency on the exchange for trading purposes while storing the majority in a secure wallet.
Wallet Hacks
Crypto wallets are an essential part of managing and storing cryptocurrency, and there are different types of wallets available in the market. Hot wallets are always connected to the internet, making them vulnerable to cyber threats, including crypto exchange hacks.
Cybercriminals can exploit network vulnerabilities to gain access to a hot wallet and steal the cryptocurrency it contains. It’s crucial for crypto owners to take necessary precautions to keep their wallets secure and protect their digital assets.
Using a cold wallet, which is not connected to the internet, is one way to enhance wallet security and minimize the risks associated with exchange hacks.
Preventing Crypto Exchange Hacks
Anyone using cryptocurrencies or exchanging them for better maintenance of finances always needs to take one extra step every time to stay on the safe side. It’s clear that you cannot stop a hack after it happens.
So all you need to do is in advance.
- Get a cold wallet
- Go on the defense
- Use a VPN
- Enforce basic password security
- Be aware of phishing scams
- Secure seed words
Consider these safe steps to avoid the hacking curves to swap Crypto safely.
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