Forex in this article
• More than $3 billion in hacker loot by 2022
• Investors should keep their assets as safe as possible
• Cold wallets offer fewer opportunities for attack than hot wallets
Record year for crypto hacks
The year 2022 is probably a new record year for crypto hackers. According to Chainalysis, cryptohackers have per October 12 already stolen more than 3 billion dollars through 125 hacks. The month of October stands out in particular. According to this, October is said to be the month most affected by hacks this year. Between October 1st and 12th alone, a total of 718 million US dollars is said to have been stolen by eleven different hacks. Defi projects are the most common victims of hacking attacks at more than 90 percent. According to Kim Grauer, head of research at Chainalysis, the hackers are so successful primarily because not enough resources are currently being devoted to cyber security.
This is how investors can protect themselves
In order not to be one of the victims of hacking attacks, BTC-ECHO recommends taking five security measures that are particularly important for crypto investors. First of all, you should make sure that you only buy cryptocurrencies from trustworthy providers. There are many ways to buy cryptocurrencies in the crypto market, and many crypto exchanges differ in their features. In addition, it has been the case in the past for owners of centralized platforms to simply shut down and flee with investors’ funds, so choosing a reputable provider is fundamental.
Another important step in terms of security is strong passwords. Access data consisting of your own name, birthday or similar personal information is easy for hackers to decipher. The Federal Office for Security and Information Technology explains: “Hackers have tools that test all possible combinations of characters completely automatically, test entire dictionaries including common combinations of words and numbers attached, or test access data that has been published on the Internet for all possible In order to prevent this meets a password certain quality requirements and can only be used for one access.” To make the password as secure as possible, you should use a variety of letters, numbers and symbols.
If the password consists of a secure and strong combination of characters, the first step has already been taken. However, according to BTC-ECHO, security can be enhanced with two-factor authentication. With this method, which most wallets have, the user’s identity is verified during the login process. If the password was not sufficient security, the user account is protected by an additional security measure. If this involves biometric data, such as facial recognition and fingerprint scanning software, it is almost impossible for hackers to bypass this measure.
One should also not rely on third party services to store their digital assets. Instead, you should keep your cryptocurrency yourself, i.e. be your own bank. With self-custody, investors have full power over their digital assets, meaning users have full control over sending, receiving and storing their cryptocurrency. This is possible by using wallets.
Finally, one should always exercise extreme caution against crypto scams. Because all the security measures mentioned do not help if a fraudster gains access to them through false trust. There are different types of fraud that you need to be aware of. These include cryptocurrency scams, cryptocurrency extortion scams, cryptocurrency social media scams, giveaway cryptocurrency scams, fake app scams, love scams and phishing scams.
Hot or cold wallet
If you take the security measures, you are a bit safer from crypto scammers. However, there are also things to consider when choosing the right wallet in terms of security. The important question is: Do you decide on a warm or a cold wallet? Hot wallets have the advantage of offering their users a high degree of convenience, as WiWo explains. Because the wallet is continuously connected to the Internet, users can trade their coins quickly and easily via different devices. This is especially useful for users who trade regularly and want to react quickly to price developments. However, although the security standard of such wallets is very high, this constant internet connection is also a popular target for hackers. As BTC-ECHO explains, cold wallets, on the other hand, offer the advantage that these potential attackers have fewer opportunities to attack. The reason for this is that these end devices work without internet access and hackers would only be able to gain access offline.
E. Schmal/Redaktion finanzen.net
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