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Cryptocurrency users lost $437 million to fraud, piracy and hacks in the first three months of 2024, a sign that the industry remains vulnerable to security risks, experts at Smart Betting Guide said in a recent report.
The decentralized finance (Defi) sector in particular is considered the most vulnerable, with all incidents reported this year falling into this category. has emerged as the most attacked blockchain, suffering an alarming 33 hacking incidents on its blockchain alone.
In the study, the Ethereum chain tops the list of hacks, followed by the BNB chain with 14 incidents, Arbitrum with 6, and both reporting 2 incidents each.
To address these vulnerabilities, the pros at Smart Betting Guide have shared some important tips for crypto users on how to protect their assets. Key recommendations include avoiding cloud storage of passwords and seed phrases, which are crucial for accessing crypto wallets and exchanges.
Instead, users are required to physically secure this information to prevent unauthorized access.
Additionally, opting for hardware wallets over exchange-based storage offers a safer alternative and protects users from online attacks and possible exchange outages.
The article explores why hardware wallets are better than storing your cryptocurrencies on exchanges. FTX's crash is a stark warning about the risks associated with storing cryptocurrencies on exchanges, where billions were lost. Analysts describe hardware wallets, or cold storage, as the best way to protect your private keys from online hackers and the insecure soil of exchange sites.
The guide also emphasizes the importance of conducting thorough research before investing in cryptocurrency projects and warns against scams such as “rug pulls.” Potential investors are advised to check the credibility of project developers, the fine print of white papers, liquidity assurance measures and the availability of third-party audits. This is crucial for confirming the authenticity and security of their investments, the study says.
Other security measures include staying vigilant against fake apps and exchanges that often target unsuspecting investors. Users should rely on official sources for app downloads and remain skeptical of applications with low download counts or questionable developer credentials.
Finally, general cybersecurity practices such as avoiding suspicious emails, enabling two-factor authentication, and avoiding dubious online offers are recommended to protect not only cryptocurrency holdings but also personal information.
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