Welcome back everyone,
Today we will talk about Centralised Exchanges and the hacks/attacks they go through in present time. I know most of the readers here must have been safe from any type of crypto hack / attacks but believe me you will not be informed before you observe it on yourself.
The reason why i am writing this blog is because there was a exchange named CoinEx that was suspected to be hacked due to which $27 million worth of crypto is being effected.
Coinex has temporarily shut down the withdrawals and deposits feature on their exchange so that they can investigate and continue providing their services at ease. The thing i liked about them is that they informed their user about how they are going to provide 100% compensation to the affected partied due to this hack.
Crypto Exchange Hacks / Attacks
Let us come back to our topic that was about Crypto Exchanges Hacks / Attacks. So what is a crypto exchange hack/ attack ? In common words when a crypto exchange observe suspecious activities where a particular unkown address starts recieving a huge amount of crypto from various different addresses of common people using the exchange is what we call a crypto exchange hack.
Now this is something no exchange is safe from, we have heard about crypto exchange hacks from top players as well. So not even Binance or Coinsbase is safe from these types of hacks. I will share some ideas / ways in mu opinion that will help you protect your funds upto some extent for sure.
How to be Safe from these types of Hacks ?
Majority of the people still use Centralised Exchanges even in 2023 and that will not going to stop as we see massive crypto adoption by millions of people around the world. I will not get into the debate about usind decentralised exchanges.
We will just focus on what people dealing with crypto currencies can really do to protect their funds. Here are some ways that i personally follow myself to stay safe from hacks related to Crypto Exchanges.
Split your funds among different exchanges
So the first thing you can do is to not keep your funds at one place. Choose different tursted exchanges in your knowledge and keep your funds there. For example if you trust Binance, Mexc, and, Coinbase then split your funds among these three to protect your funds till some extent.
For sure the chance that all three of them will get hacked at one time is quite less likely compared to the chances of one of them getting hacked. So just diversify your funds on different exchanges.
Use Decentralised Exchanges / Wallets
If you have not used decentralised exchanges / wallets like Pancake then you should definitely give them a try as your funds are more safe there compared to a centralised exchange. Your wallet is actually your wallet as you own the keys to them and not the exchange.
You must have heard about that famous phrase related to crypto, Not your keys not your crypto. So decentralised wallets are also a good option but make sure to learnt to use them properly so that you don't end up losing your entire wallet due to lack of information.
Cold Storage
This one is the best solution though the world is still in the process of adapting to use them. There are cold storage wallets available in the market where you get a device, a digital device where all your crypto supported by that wallet are stored 100% securely.
If you are someone dealing in crypto currencies then you must keep a cold storage with you. You are the one promoting this technology and so you should have this device for sure.
So these three were the solutions in my opinion to stay safe from crypto exchange hacks and attacks. Now i leave this upto the readers to decide what they want to do and what they don't.
That's all about today.
Thank You and Happy Trading Everyone
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A really helpful blog in my opinion, I agree with you on the solutions shared in this blog and for me as well Cold storage are the best option but if we are trading regularly then we have to select centralised exchanges and sometimes we are just trading a coin that is only on a one particular exchange so these exceptions are also there.
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