3 Things You Should Know About Crypto Exchange Hacks

By  //  May 2, 2022

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Crypto trading has come a long way in recent years. Today, several different platforms and exchanges allow people to buy, sell, and trade digital assets. Crypto trading has become increasingly popular as more people have become interested in cryptocurrencies and blockchain technology.

For many people, crypto trading offers a great opportunity to make money. However, it can also be risky. For some, the key to successful crypto trading is finding a good bot that suits their needs. There are many different crypto bots available on WP Dev Shed’s list of bots, and they all have their strengths and weaknesses.

It’s important to do your research and choose a bot that has a good track record and is trusted by other traders. While it can be a great way to make money, it is also important to understand the risks involved. 

When you get involved in the world of cryptocurrency, you can be overwhelmed by the fear and worry about getting hacked. There is a potential for getting hacked and if you find yourself in this situation where your exchange gets hacked or becomes insolvent, you need to know what to do.

Ask yourself: what happens if your funds disappear? Can you expect any recourse? Can you protect yourself?  Cryptocurrency hacks are extremely common these days and many people aren’t aware that they need to report them. This article will explore 3 things that you need to know about crypto exchange hacks. 

Protect yourself from hacks

Before you can begin your journey with cryptocurrency, you need to understand the basics. Many hackers create elaborate schemes to get their hands on people’s funds so it is important to do what you need to do to protect yourself. You need to ensure you have a very strong password while also making sure that you enable two-step verification on all of your accounts.

A secure option to store your funds in cold wallets that are not connected to the internet and are on separated hardware devices. Cold wallets are considered to be more secure however if you happen to lose them, you will lose all of your digital assets. You need to understand that you cannot perform anything financial with cryptocurrency unless you possess a set of public or private keys.

If you lose your private key then you cannot use your assets any longer and if a third party gains access to your private key, they can transfer all of your money into their wallets and because crypto transactions are nearly impossible to track, your money will be lost forever. This is why you need to keep your keys secure because hackers target keys. When using exchanges, you need to do your research and be very cautious and you also need to beware of wallets that are not reputable because this puts you at risk. 

Common ways that people lose their cryptocurrency 

There are a few common ways that people lose their cryptocurrency and you should try by all means to avoid the following: 

1. Cross-site scripting or XSS: This is when the hacker uses your browser as their own.

2. Open redirects: this is when hackers redirect you from your link to your cryptocurrency exchange.

3. SLL problems that relate to mobile applications

4. Keeping cryptocurrency on an exchange allows it to get hacked. 

5. Losing a key or password for your wallet.

6. Storing all your cryptocurrency in one location and then losing it in that location.

7. Transferring money to the wrong location. 

Importance of keeping your password safe and secure 

A cryptocurrency password is referred to as a private key and it can be held outside of the cryptocurrency exchanges meaning you can move your crypto to cold storage or a cold wallet. You need to make sure that you use one to safeguard your crypto from getting hacked and your funds getting stolen.

To ensure that your password is secure you should make sure that the password that you created is very strong and that you have enabled 2-step authentication as an important extra measure. It is also a good idea to consider frequently changing your password just to be extra safe and secure.

Whether or not you’re encrypted with 2FA, It is important to change your password often and have different passwords on each site. This reduces the risk of exposure significantly and also puts you at less risk of danger in the form of hackers and scammers so you should keep a different password on each site especially crypto exchanges that store a large amount of money.

If you are considering joining the world of cryptocurrency, you need to understand that there are risks involved and that this realm is riddled with hackers who dedicate their time to trying to steal funds from people. You have to be familiar with the common ways that you can lose your cryptocurrency and implement ways to protect yourself from getting hacked.