Why do hackers target cryptocurrencies? How you secure your cryptocurrency

2023, Dec 09

With more than 420 million cryptocurrency users globally and the emergence of more than 12,000 cryptocurrencies around the world, it is expected that the market value will reach 2.2 billion USD by 2026. Cryptocurrency sector Digital technology is expanding rapidly, creating many opportunities but also opening up the risk of cybercrime. This growth attracts the interest of cyber scammers, who are looking to deceive unsuspecting people. In this article, we will explore effective strategies to protect against cryptocurrency scams and ensure a safe cryptocurrency exchange environment.


The emergence of cryptocurrency in the modern era

Since the emergence of the first decentralized cryptocurrency, Bitcoin, which became accessible to the public in the 2010s, it has quickly become a popular phenomenon. The idea of paying with virtual currencies has the potential to reduce transaction costs, increase financial inclusion, and significantly improve security and transparency.
Most cryptocurrencies operate on a blockchain system, a network of nodes that allows for decentralization. Blockchain provides a high level of transparency by making all transactions and wallet balances public. At the same time, participants in transactions or holders of cryptocurrency wallets can maintain anonymity, enhancing privacy compared to traditional bank transfers. By operating like this, cryptocurrency exchange systems have the potential to provide a much greater level of privacy than conventional banking transactions.
With a positive outlook ahead, Bitcoin alternatives have expanded the virtual payments ecosystem, leading to an increase in transaction volumes that surpass the processing capacity of blockchain.
Why do cryptocurrencies attract the attention of hackers?

Transparency of transactions and enhanced security features are attractive aspects of cryptocurrency payment systems. However, it is these features that are often targeted by hackers.
Cryptocurrency attacks can have large payouts
Cryptocurrency traders and wallets, amid the significant market capitalizations of major players such as Bitcoin, Ethereum and Tether, valued at $330.6 billion, $152.6 billion, and $152.6 billion respectively 68.2 billion USD, are becoming attractive targets for cyber attackers. According to data from the analysis company Blockchain Chainanalysis, in 2022, cryptocurrency hackers committed thefts of up to 3.8 billion USD.
In September 2022, malicious actors leveraged a vulnerability in the Profanity app's private key system to steal $162.5 million from the hot wallet of Wintermute, a cryptocurrency market maker. The term "hot wallet" refers to an online cryptocurrency wallet that facilitates transactions between the owner and other parties.
Cryptocurrency companies may be more vulnerable to cyberattacks

Although the concept of cryptocurrency originated with Digicash's creation of eCash in 1990, it was not until Bitcoin emerged in 2009 that it became mainstream. With around 100 new cryptocurrencies being created every day, aspiring "crypto traders" often prioritize issuing cryptocurrencies over ensuring the security of their business. Even major cryptocurrency companies may lack advanced cyber security measures enough to fend off attacks from hackers due to the rapid growth of the industry.
In January this year, it was revealed that the FTX cryptocurrency exchange collapsed and lost $415 million due to a hacker attack. Recovery efforts are ongoing, and it is expected that the stolen cryptocurrency, representing approximately one-tenth of total assets, will be recovered.
Tips to secure your wallet and cryptocurrency transactions

1.Implementing strong passwords is your first and most important step in protection. A strong password should have at least eight characters, combining uppercase letters, lowercase letters, numbers and special characters. Always maintain the habit of using separate passwords for each of your accounts to increase safety.
2.Implement multi-factor authentication (MFA) which is a strong security measure that requires additional information beyond the password to log in. This may include the use of push notifications to mobile devices or confirmation from biometric data.
3.Remain vigilant against phishing and social engineering attacks, as human error is often the main cause of cybercrime. Stay informed about phishing and social engineering threats to reduce your risk of becoming a victim, and avoid clicking on suspicious links or downloading unsolicited files.
4. Limit the use of public Wi-Fi, especially when accessing cryptocurrency wallets or making financial transactions. Public Wi-Fi is often a favorite target for hackers to carry out man-in-the-middle attacks, so avoiding the use of unsecured Wi-Fi is an important protective measure.
The Role of VPNs in Enhancing Cryptocurrency Security
Enhancing the security of your Internet connection through the use of a VPN service will provide a significant layer of protection and privacy protection for your online traffic flow. When a VPN is activated, it encrypts all of your data traffic, making decryption impossible for potential eavesdroppers. Furthermore, a VPN establishes an encrypted tunnel for Internet traffic between your device and the VPN server, which is especially important when using public Wi-Fi. A reliable VPN service, like VPN Rice, also helps hide your real IP address, improving your online privacy and reducing the risk of third parties tracking or monitoring.

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