Security Problems with Cryptocurrency: Personal Experiences

avatar
(Edited)

In all spheres of life, security is paramount and very vital. Where there is no security, safety isn't guaranteed. Inasmuch as the technology (blockchain) behind cryptocurrency is immutable and hard to hack, certain cryptocurrency projects stand the risk of being hacked. Hacking into a cryptocurrency project like an exchange or a wallet could be due to a weak security system of an exchange or carelessness of a wallet owner in the case of wallet hacks.

image.png
source


This is why it is always being advised to store private keys or seed phrases in a very secure manner. Also, exchanges too should endeavour to tighten their security measures to avoid user's funds being stolen by hackers. Over the years, we have heard of many security problems with cryptocurrency exchanges that resulted in the loss of many people's fund. For this reason, it is always better to store assets in a wallet since wallet services appear safer.


Although wallet services prove to be safer, a user still has to be careful with the manner with which he stores his seed phrases. Losing your seed phrases means you will not have access to your funds in a case where you change your device. Also, one has to be careful with the sites he connects his wallet to especially in this period of many airdrop campaigns.

Connecting your wallet to a wrong or fake site could be dangerous as your security information could be accessed. This is to say that when it comes to cryptocurrency especially bearing in mind that it is purely decentralized, the security of your assets is incumbent on you the owner. Protect you private keys and seed phrases, store safely and don't expose to site and people you don't trust.


Altilly Exchange Hack



screenshot source: https://www.altilly.com/


Earlier this year 2021, I was a victim of a security problem that eventually led to me losing my assets. Altilly exchange was a centralized exchange that listed a few coins I was interested in. So, this led me to registering on the exchange as at September 2020 and I begun trading as well. Everything was going find not until I tried logging in on the application just to discover that the exchange was hacked and funds stolen. It was a painful experience though but I learned a lesson.

The servers the Altilly Exchange platform utilised were provided by an independent hosting provider. Earlier this week on the 23rd December 2020, we were alerted to suspicious activities/monitoring alerts on our servers. Three servers suspiciously rebooted around the same time. After checking the servers, we noticed some unusual activity and a new system user was created. Read more about Altilly hack here: https://www.altilly.com/


Since, exchanges cannot promise you a full security on your assets, it is better to only leave coins you want to trade on exchanges while leaving the rest in your wallet where you are in full control of your keys.

Another case I had I security problem was losing my private keys. The keys were actually stored on my mobile phone but I made the mistake of not backing up the keys. So, unfortunately, I happened to lose the said mobile phone and since the 'recover password' feature is not common with cryptocurrency projects, I lost my funds.


Yes, it is true that blockchain technology has a high security level but hackers and cyber thieves will have be on the lookout for exchanges with weak security levels. Hence, crypto projects should endeavour to tighten their security and users also should take responsibility for the security of their assets. Securely save your keys and back up keys as well.


Posted Using LeoFinance Beta



0
0
0.000
4 comments
avatar

Connecting your wallet to a wrong or fake site could be dangerous as your security information could be accessed.

I have not that much great idea about this specified way of hacking. thank

Posted Using LeoFinance Beta

0
0
0.000
avatar

Well, I have heard of such cases

0
0
0.000
avatar

This is great content for the hivehustlers tag and community... Not so much for Hivelist as it is not an advertising or ebusiness post. Thanks.

0
0
0.000