The recent attack on New Zealand based centralized cryptocurrency exchange, Cryptopia further reiterates the fact that there is no centralized exchange that is not prone to hacks. For clarification purpose, centralized crypto exchange is an exchange where users who trade do not have total control over their accounts as their private keys are known and controlled by the exchange owners. Owning crypto assets due to ICOs and STOs are considered a way of making money and those who are not ready to purchase tokens resorts to hacking of other users funds.
Decentralized exchanges are crypto exchanges that often do not require users to sign up before they can trade and users have absolute control over their funds. Though there are decentralized exchanges but they are not as popularly known and used like centralized exchanges. If you are planning on joining crypto as an investor or trade, please read Join Crypto Now or Later
According to the official release from the Official Twitter handle of Cryptopia obtained by Keycryptohub, it shows that the exchange has lost a lot users funds to the security breach and there is no assurance that the exchange will resume operations soon as trading has been suspended.
Although, huge of amount of funds are dedicated to security by exchanges. Sometimes, hacking contests are organized whereby developers are called to check for vulnerabilities and get rewarded for the efforts officially. This is one the security steps taken by exchanges to guarantee security of funds to the users.
However, as a crypto trader or hodler, protecting your fund is as equally protecting the air you breathe in and that is why it is important to follow some certain guidelines as highlighted below. Since most crypto users are known to use mobile or hot wallets on smartphones due to its simplicity and portability, it has made many smartphones to be target of cyber-attacks in form of Trojans, keyloggers, unauthorized mining malware and many more, all towards stealing funds or causing damage to the device.
General Steps To Protect Your Crypto Funds
- If you are an investor or hodler, you are not supposed to keep your funds for long on an exchange where you do not control the private keys or seed phrases. Having control over your private keys prevents your wallets from unauthorized access or attacks.
- Never save or screenshot your seeds phrases or private keys on your phone or device connected to the internet. Anyone with access to your device can copy and use your seed words to access your wallet. Copy your seed words offline written down somewhere safe where only you can have access to it.
- Protect your wallet with 2 factor Authentication system. It gives an extra layer of security to your wallet.
- Avoid downloading, installing and running unknown files or apps on your devices especially from unverified sources.
- Do not reveal how much your crypto assets are worth so as not be an easy target of hacks or attacks.
- Ensure you do not show or access your crypto portfolio in the public where there will be prying eyes to your funds.
Cryptocurrencies are generating interests globally which is making their worth increases with more adoption and this has also led to hacks on small and big scale, so ensure you protect your crypto assets. Your private key is your fund.
Is there any other security tip you would love to share with others? Please use the comment section.