There have been a number of high-profile hacks on crypto exchanges over the years – with one particular hack costing an exchange over half a billion USD. These sorts of headlines are what stop many crypto investors from realizing their ambition. The fear of losing their investment in an instant to hackers puts them off and they stick with stocks, shares or property. To some extent then, crypto is somewhat of a threat to cybersecurity, after all, you can’t hide from those headlines and numbers.
Nevertheless, there are plenty of ways that cybersecurity threats are being mitigated in the crypto sphere and lots of reasons why you should still be making the move.
1. Safer Wallets
The first place to start when making sure your crypto is safe is a crypto wallet. To protect the crypto you keep in one of these wallets there are a number of things you should do, such as not using public WiFi or not keeping codes stored electronically. Yet, you still require a wallet that boasts an excellent safety record. Anyone wanting to buy Bitcoin should learn more about the Luno Bitcoin Wallet, a popular option that is not letting people down.
2. Exchange Contingency Funds
Even though exchange platforms are the target of hackers, the best and most used exchanges do have a contingency plan in place. It is common for popular exchanges to leave a large amount of cryptocurrency in reserve in the event of a hack. This means the exchange will redistribute their contingency pot among victims, meaning you get your money back in a way you would receive money back if your fiat currency was stolen.
3. Self-Hacking Wallets
A contingency stack of crypto is not the only smart thing that is being done either. Some wallet providers will hack themselves just after a breach to steal the crypto of their most vulnerable customers. Wait, it’s not as bad as it sounds. They do this to protect those that are being careless with security so they can hold on to crypto while there are attacks taking place elsewhere, only to hand the crypto back when your account has been secured.
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4. Exchanges Are Now Insured
Not all exchange platforms, but many of the big names have started seeking insurance against hacks. This is a key step in the journey to complete cybersecurity for crypto because it would mean your cryptocurrency is protected in another way close to your fiat currencies.
5. Exchanges Working Together
It can be hard for competitors to work together with no personal gain, but the crypto crowd has recognized the need to keep everyone protected regardless of their competition. After all, it does more for the industry as a whole and crypto’s reputation. They work together through sharing data of hackers, usually starting at the top of feeding down to the smaller exchanges and crypto-involved companies.
Crypto may cause some concerns from a security perspective, but it could even be argued that crypto is a lot safer than people perceive and even makes a lot of processes more secure.