According to the Chainalysis data presented in Crypto Crime Report, it’s estimated that more than 1 million BTC have been hacked and stolen from crypto exchanges alone. The sad truth is that in the wild and unregulated crypto world, stealing cryptocurrency is a relatively easy thing to do. It can happen not only to individuals but to companies and platforms as well. For example:
- In July, Bleeping Computer found out that 2.3 million bitcoin wallets are under threat of being hacked. The company discovered that hackers tried to change the copied wallet’s address to the address one of the hackers.
- In May 2019, Binance, one of the largest crypto exchanges, got hacked, losing 7,000 bitcoins in one go.
- In January 2015, anonymous hackers attacked Bitstamp, a Slovenia-based crypto exchange, stealing 19,000 bitcoins, worth $5 million at the time.
- In August 2016, hackers found a vulnerability in Bitfinex’s multisig wallet architecture. The attack led to the loss of 120,000 BTCs, which was worth $72 million at the moment of theft.
The list could go on and on. And here is the thing: Crypto hackers are getting more and more sophisticated. They use different methods to hack crypto wallets and steal users’ funds.
So, how you can protect your bitcoins from getting hacked and stolen? In this article, we’ll share with you some tips on how to avoid attacks from hackers. Let’s dive in.
Tip #1: Don’t click blindly
According to Chainalysis, using the email phishing method hackers have stolen $225 million in cryptocurrency so far. How does it work? You get an email from a service you already use.
The email has a familiar format and design, but it’s a scam. Hackers usually ask you to click on a link or to give sensitive information such as a private key. So, don’t click blindly and don’t give your private key away.
Tip #2: Never use public WiFi to make bitcoin transactions
Did you know that WiFi routers have a flaw in their security protocol? This flaw allows hackers to see data going through the network, including your private key information from crypto wallets.
Moreover, public WiFi such as the ones at airports, stations, and hotels are even more vulnerable to hacking attacks. So how can you protect your bitcoins? For starters, never use public WiFi to make bitcoin transactions. Even VPN won’t protect you.
Tip #3: Add two-factor authentication and use encryption to protect your bitcoins wallet
It’s always wise to be extra cautious and secure your bitcoin wallet with two-factor authentication and encryption. We recommend you install an antivirus software on your devices, encrypt your hard drives, and do regular backups. Also, you should set up two-factor authentication on every online account you have (if it’s allowed).
Tip #4: If possible, stay away from a centralized crypto exchange
There are centralized or decentralized crypto exchanges. Why do we recommend using a decentralized exchange? Because a centralized exchange has access to and control over your private keys. And any exchange can suffer a hack attack, hence compromising your funds.
In contrast, decentralized exchange doesn’t have access to your private key, and in the case of hacking, hackers will have difficulties stealling users’ private keys.
Here is the sad truth: If your bitcoins get hacked and stolen, they’re gone for good. Keep in mind that you’re always at risk and make sure to conduct at least basic security measures. In the digital world, anything can get hacked.