The biggest hack that ever rocked the cryptocurrency industry was MtGox. Although the incident happened 5 years ago, the memory is still fresh in the minds of its victims and the cryptocurrency community all around the world will not want that sad history to repeat itself.
No one likes to lose hard-earned money and the pain of the incident is an unforgettable experience in the industry.
Many crypto newbies acquire their cryptocurrencies through centralized exchanges and keep their newly acquired cryptocurrencies on these exchanges, unaware of the dangers of leaving their digital assets on a cryptocurrency exchange.
There is a popular saying in the cryptocurrency community, ‘if it is not your keys, it is not your crypto’ as the risk of leaving cryptocurrencies on exchanges is high, especially during these times of hacks and ransomware.
Every crypto wallet comes with two keys, public and private keys. The private key is the focus as it can be a double-edged sword. In a situation where an investor loses their private key, they will no longer be able to access their cryptocurrencies again.
This happened to Stefan Thomas, a German-born programmer who made headlines for losing his wallet password which rendered his bitcoin stash worth $220 million inaccessible. Think of your private key as your ATM pin; you must do all you can to keep it secret and safe as you would not know when a cryptocurrency would decide to moon.
For active traders involved in quick gains and futures trading on centralized exchanges, as a pro tip, when trading, make sure that not more than 50% of your cryptocurrency portfolio is not sitting on an exchange wallet at any time.
The transaction cost of moving cryptocurrencies around different wallets can be bothersome, it is all worth it in the end, when your cryptocurrencies are safe.
Although a lot of centralized exchanges are taking big steps in making sure their network is impenetrable, they are not completely immune to hacks. These days, many cryptocurrency tokens have been getting hacked through rug pools and liquidity attacks. TITAN token is a primal example of such a situation.
This goes to show that as cryptocurrency security architecture gets better, hackers continue to figure out more ways to steal money from people.
Tips to Protect Your Cryptocurrency
Avoid phishing websites at all costs. Never install malicious applications or software on your device. You may end up installing keyloggers on your device and this will breach your wallet security.
If you can afford it, a hardware wallet in the form of a USB is the most secure way to protect your cryptocurrency at the moment. It gives you the opportunity of having your coins in an air-gapped wallet, and it only connects to the internet when you want. Although there is a catch; when you lose your hardware wallet password, be reminded that all the coins that are stored in it will be inaccessible.
Investors who are worried they could lose their passwords can use platforms like CryptoHex. The platform allows its users to store their private keys. Even in situations of a fire outbreak, the probability that you will still have access to your cryptocurrency is high.
Investors can also use online wallet platforms like Trustwallet, Metamask, Safepal, and other similar platforms to keep their cryptocurrencies safe.
With all these mentioned, every cryptocurrency enthusiast needs to know that the safety of your crypto assets is their primary responsibility.