Crypto Security: Why it is Important More than Ever Now
The past decade has seen the influence of cryptocurrencies reach unprecedented heights. Crypto has provided fantastic opportunities to all investors to establish and grow their portfolios, securing their financial future.
The lack of regulation is a persistent issue looming over the crypto and Decentralised Finance space. Hackers and cybercriminals can easily commit phishing attacks and access digital assets that impact corporations and individual users.
An example is a recent event in June 2022, when hackers stole $100 million from Harmony, a crypto bridge platform. Previous heists have seen other crypto platforms lose significant sums of capital, with Ronin losing $600 million and Wormhole $320 million, respectively. Such attacks not only impact investors but also undermine the trust in the system.
In the wake of such attacks, implementing comprehensive and wide-reaching security measures has become a prominent issue amongst the crypto community. Ensuring the protection of digital assets can stimulate growth in the crypto sector. Still, one must be mindful of remaining one step ahead of increasingly sophisticated theft-oriented technologies.
What are the Most Common Types of Attack?
The scale and versatility of cyber attacks are becoming increasingly expansive, with new methods and loopholes providing sizable opportunities for hackers to access vast sums of crypto.
- Phishing - hackers can cloak their true identity and pretend to be a trusted person or entity. The hacker will try to trick you into revealing personal information and data and leverage the knowledge to access your digital assets.
- Third-Party Software - investors may utilise software to help manage their crypto portfolio, an example being tax reporting software. Whilst these applications may be legitimate, the software creates another avenue of attack for hackers to exploit.
- Malware - like other types of malware, this software aims to maliciously infect your tech, access personal information, and manipulate the data. In crypto-malware, hackers will try to dupe users into installing malicious software on their systems. The live malware permits access for the criminals to harvest relevant data and steal assets.
Above are only some examples of crypto hacking techniques. Newer, more sophisticated methodologies will undoubtedly become available. You can utilise many effective security measures to combat the attackers.
What Crypto Security Is Currently Available
Whether you're a new investor with minimal skin in the game or a long-term trader with an established crypto portfolio, securing your digital assets should be of utmost importance. If you fall victim to hacking, the chances of ever regaining your crypto are slim to none. Here are some preventive measures you can take to minimise hacking attempts.
- Cold Wallet Storage - arguably the most effective method against hacking; the investor can withdraw their assets to a cold wallet storage device, such as a USB, and keep the crypto offline. A private key or a complex password must be provided before the crypto can be accessed.
- Key Storage - whether you choose to store your assets online or offline, protecting your keys is central to the safety of your digital assets. Essentially you can lock your keys up in a 'vault' and generate backup keys to access the original keys, thus creating multi-level security.
- Other Considerations - you can regularly update your passwords to prevent hackers' advances. Researching the various hacking methods and familiarising yourself with standard techniques is advisable to identify them quickly.
Hackers will forever be vigilant, searching for any way to access your assets. As long as you stay aware of evolving threats and take necessary precautions, you'll be well on providing the utmost protection for your crypto assets.
Hodlnaut – A Regulated and Secure Platform
If you are looking for a reliable, secure, and regulated platform, then Hodlnaut might be a good fit for you. Hodlnaut runs on a secure infrastructure on Amazon Web Services, and all user traffic is encrypted with SSL encryption. Hodlnaut also uses two-factor authentication (2FA) system to ensure that user accounts don't get hacked. The platform takes many safety measures to secure users’ funds so that hodlers can earn passively while holding their coins with Hodlnaut.
Nexus Mutual Optional Cover: As a Hodlnaut user, you can now purchase custody cover on the funds you place on our platform. This optional cover is an additional safeguard we recommend for all users.
Hodlnaut’s Withdrawal Whitelist (Address Whitelisting) is a security feature that adds an extra layer of protection to your account. It ensures that the crypto assets in your Hodlnaut account are only sent to known and verified withdrawal addresses.
Regulated by MAS: Hodlnaut has received an in-principle approval (IPA) for a Major Payment Institution License in Singapore from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PS Act) for its Token Swap feature. The firm is also a certified Fintech by the Singapore Fintech Association, an accreditation recognized by the MAS.
Implementing comprehensive security measures to protect investors and the crypto community still has a long way to go. With hackers creating new and intuitive acquisition tactics plus a glaring lack of regulation in the crypto space, one could be forgiven for feeling nervous about investing.
Effective digitized security measures are the next logical step in protecting crypto assets. Hodlnaut offers its users cutting-edge custody cover from Nexus Mutual. When digitalized security measures for crypto are still sparse, Hodlnaut and Nexus Mutual stand apart from the crowd, providing users with a safe place to build their portfolios.
Interested in growing your crypto assets with Hodlnaut? Start earning industry-leading interest rates and sign up for Hodlnaut today.