The digital asset landscape is currently experiencing a wave of interest, and with it, new and exciting technologies are being developed to improve the way we do business. The blockchain technology allows for peer-to-peer transactions without traditional financial institutions. However, there is always a risk when dealing with cryptocurrencies. Today we will discuss some crypto threats and some tips on how to secure your cryptocurrency assets against hacks.
How does blockchain security work?
The blockchain is a public ledger of all transactions ever made in a cryptocurrency. Every computer connected to the blockchain has a record of every transaction made since the currency’s creation. The blockchain is never stored on any one computer; it exists on many computers all at once.
The computers are synchronized through cryptography, so it would take an extremely powerful supercomputer to crack any one copy of the blockchain without also decrypting the whole network. This synchronization makes hacking or altering the blockchain almost impossible from an outsider’s perspective—but that doesn’t mean an outsider can’t change something about their own copy of the blockchain
A user with access to the blockchain ledger can make any number of changes, but if those changes are uncoordinated and inconsistent with the rest of the copies of the ledger, then they cannot be recorded as part of the official record.
What is a 51% attack?
A 51% attack is when someone takes control of the majority of a cryptocurrency’s mining power, which allows them to mine blocks faster than the rest of the network. This attacker can then use those blocks to rewrite history, double spend coins and prevent other miners from mining.
The most famous example of this was in June 2018 when hackers took control of one-third (33%) of Ethereum’s hashrate and stole around $20 million worth of Ether tokens from three different ICOs (Initial Coin Offerings).
Can cryptocurrency be hacked due to bug vulnerabilities?
Yes, cryptocurrencies can be hacked. In fact, it’s happened several times in the past few years. For example, in 2018 a bug was discovered that allowed hackers to steal $30 million from Ethereum users by exploiting vulnerabilities within the network itself.
Another example is Bitcoin Gold (BTG), which experienced an exploit earlier this year when someone took advantage of a bug and stole some $18 million worth of coins from users’ wallets while they were asleep at night.
These types of exploits wouldn’t have been possible if there weren’t vulnerabilities present within these networks–and since crypto isn’t immune to bugs, there are definitely other ways for hackers to take advantage of them as well.
What are the most common crypto attacks?
Crypto-jackers are the most common type of hacker in the crypto world. Crypto jacking malware infects your computer and uses it to mine cryptocurrency without your permission, often without you even realizing it’s happening. It’s easy for hackers to find vulnerable devices and exploit them–most people don’t know how to secure their computers or phones against crypto jacking attacks.
In some cases, hackers will use ransomware on their victims instead of crypto jacking them; this means they lock down your files with encryption so that only they have access to them
Ransomware is typically used as an extortion tool: if you want access back into your own data, then pay up. But sometimes hackers will use ransomware simply because it’s easier than other forms of attack–there’s no need for complicated code when all you need is some free software from the internet.
Tips to secure your crypto assets against hacks
Use a hardware wallet
Using the right crypto wallet is critical—if you’re holding tokens that are vulnerable to hacking, there’s nothing in this world that can protect it. You’ll want to look for a wallet that has been audited by security professionals and has strong encryption methods. Make sure you update your wallet regularly and backup your assets, just in case something goes wrong.
Use 2FA (two-factor authentication)
Two-factor authentication requires two steps before someone can access an account on their computer or phone–for example, entering both a password as well as another piece of information unique to you (like a PIN number) during login attempts. This prevents hackers from gaining access even if they know what username(s) and email address(es) belong to you.
Avoid dubious and unreliable emails, text messages, fb posts and messages
The next most common type of attack is a phishing scam: when someone tries to trick you into giving them your private keys through trickery, such as by sending an email or posting on social media that claims to be from one of the major exchanges (or even from a friend).
It’s important to remember that no legitimate exchange will ever ask for your private keys—if they need access to your account, they’ll make a request through your account settings. Always double check emails and make sure they’re sent from the right place before responding with any personal information.
Ensure your computers are secure
Whether you’re a trader or a mere investor, what you need to protect most is your computer. Make sure your operating system is up-to-date and regularly scan it for viruses and malware. Make sure you have anti-virus software installed and run regular scans on your computer.
Conclusion
Cryptocurrency price, including XRP price, has been unstable since its inception, and so it is not a surprise that the value of Bitcoin has been fluctuating in the last few years. What is more surprising is that investors are still eager to invest in cryptocurrency despite the numerous hacking attacks on cryptocurrency exchanges and digital wallets.
We hope you now have a better understanding of how to secure your crypto assets such as LUNC against attacks. And remember that the most important thing is keeping yourself informed about what’s going on in the world of blockchain technology and cryptocurrency so that if something new does come up, you can be prepared for what comes next.
