Cryptocurrencies are very popular assets that have recently increased in popularity. However, they haven’t only captured the attention of people who want to make profits by investing in digital coins, but also hackers who wish to access the funds of innocent people. As cryptocurrencies are very accessible, and you can buy bitcoin with credit card, this has made malicious actors ask themselves if they should try their hands at stealing crypto funds.
Cryptocurrencies function with blockchain technology, which has improved security over traditional platforms. Thus, hackers cannot easily access crypto funds, but can they do that by using improved methods? This article will explore crypto security further, so keep reading to learn more.
Why Are Cryptocurrencies Considered Quite Safe Assets?
Cryptocurrencies are usually seen as safe assets, as they function with the help of a blockchain, which represents a public ledger that can verify and record transactions in a blockchain. Blockchain are decentralized, meaning they are not controlled by a central authority like a bank or government. Additionally, blockchains are transparent, and anyone can go there and see all the history recorded in a platform and the amount of crypto transferred. Not to mention that the transactions made with cryptocurrencies are anonymous, which offers better security and protection.
Blockchains and cryptocurrencies are generally secured using cryptographic prevention measures and with the help of consensus mechanisms. Encryption in blockchain is used to protect and encode the information regarding transactions. Additionally, all the transaction data are connected to the previous blocks, which is why this technology has received the name of a blockchain. So, a blockchain won’t have the possibility to be hacked in the literal meaning of this word, as it happens in traditional platforms.
Can A Blockchain Be Attacked?
If a hacker attacks and succeeds in hacking a blockchain, they would need to control more than 50% of the computation power of the blockchain, which is also called hash rate. This means that hackers would need to have 51% of this to be able to hack the platforms and make changes to the upcoming transactions that will occur on the blockchain. However, it is quite improbable that a hacker will manage to do this, which is why blockchains and cryptocurrencies are considered safer options over regular alternatives.
What Are The Most Common Hacks That Can Happen In The Crypto Landscape?
Phishing attacks
Phishing attacks are very popular in the crypto landscape, and they occur when a malicious actor tries to fool someone into disclosing important data in the crypto ecosystem, such as seed phrases and private keys. In most cases, hackers try to fool these users by using misleading channels, texts, emails, and websites.
Another popular way they try to steal information is by pretending they are a crypto exchange, telling users that the recipient’s account is in danger, and that they need to confirm some details to keep the dangers away. However, if users click on these misleading emails or texts, they might offer hackers access to seed phrases and private keys, and in this way, hackers can steal their money.
Malware attacks
Another popular crypto landscape attack is malware, which occurs when a cybercriminal uses malicious software to compromise the security of crypto funds or wallets. Hackers use this attack to access the crypto holding on an innocent individual and move them to the attacker’s wallet.
Ransomware attacks
Ransomware attacks are a common way hackers try to steal data and funds from individuals. In this attack, hackers encrypt the crypto wallets and users’ private keys, making them unreadable. They promise to return the wallets in proper condition, but only after using intimidation tactics and requesting payments, usually in cryptocurrencies.
What Are The Ideal Measures You Can Consider Protecting Your Cryptocurrencies?
You must ensure that you take the necessary measures to protect your cryptocurrencies; otherwise, you risk losing access to your crypto wallets and funds. So, you need to research ways in which you can store your keys safely so that no hackers will be able to access them. Additionally, you must invest in a wallet to improve your security. Hot wallets can have some good features, but because they function with an internet connection, hackers might have access to them, which is something you don’t want to occur.
Instead, storing your cryptocurrencies in a cold wallet that doesn’t function with an internet connection might be safer. In this way, you reduce the chances that your crypto funds will get into the hands of the wrong people. Additionally, other than this, you must ensure you don’t reveal these connectivity data to anyone, no matter how close they might be to you.
Wrapping Up
Cryptocurrencies are quite new concepts that haven’t been present for that long. Still, during all these times, they managed to make a lot of waves and attract both appreciation and criticism. The best advantage of cryptocurrencies is that they have finally offered an alternative to fiat money and brought decentralization into the landscape, which offers many advantages over traditional platforms. But because cryptocurrencies have become so popular, they are a target for thieves who try to steal the funds of innocent people. Luckily, cryptocurrencies function with the help of blockchain, which is not that likely to experience many hacks.
As blockchain is not that easy to access, hackers have tried to exploit other ways in the crypto landscape, and crypto wallets are considered one of the easiest ways hackers can get access to crypto funds. This is why investing in a safe crypto wallet will offer extra protection and ensure your account won’t fall into the wrong hands.