Difficult Yet, But Still Cryptocurrency Hacking is Possible
In this lesson, you will learn why it is hard to hack a blockchain and yet, still possible.
In the beginning, cryptocurrency was always a target of criticisms. Investors and finance experts, except a few, have shown disbelief in its success, assuming that it will vanish in the near future.
A hacker who wanted to change the distributed ledger of Bitcoin or any other blockchain-based network would have to compromise more than 50% of the machines involved (51 percent attack).
However, the progress and success of cryptocurrencies, especially Bitcoin, have left everyone in shock. A single Bitcoin progressed from a few dollars to a five-figure price in a matter of a few years, which is jaw-dropping.
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Since cryptocurrency is the talk of the town due to its sensational success, cybercriminals find a target to attack. Besides the robust security of the crypto, you may still find answers to some
For instance, can cryptocurrency be hacked? If so, how can you be safe from hacking? Read on, and you will have your answers at the end of this article.
We Have Covered:
● Is hacking possible for crypto?
● Safety measures to consider to avoid hacking,
● And the conclusion.
Sit back in comfort, and let’s get rolling:
Can Cryptocurrency Be Hacked?
Apparently, the answer to this question is a NO. A cryptocurrency has robust security consisting of blockchain technology that puts it far away from cybercriminals. However, several hacking incidents have happened to date, denying the former statement.
Following are some of the essential aspects that will clear your mind on the subject:
Cryptography: A Brief Overview:
When data is converted into secret codes, it’s referred to as encrypted data, and the encryption method is called cryptography. Cryptography creates complicated codes made of prime numbers that give a hard time to cybercriminals when they try to decode them.
As cryptocurrency is a decentralized digital currency, its transactions are secure due to the use of cryptography.
Blockchain In Security:
The security of a cryptocurrency is strong primarily because of the blockchain, a distributed ledger that records crypto transactions. Blockchains constitute blocks, constantly checked and reviewed by colossal crypto users.
So, it makes hacking challenging. Still, hacking may happen.
How Does Hacking Happen?
The storage of bitcoins requires crypto wallets, while its trading is possible only through digital currency exchanges. The security issues arise here when a user keeps their crypto in wallets. For instance, a hacker can access your crypto wallet and swipe your tokens and coins without you even knowing.
Apart from that, a hacker may break into your system using crypto-malware. Crypto-malware is manipulated and infectious data that a cybercriminal uses to alter a webpage on your computer device to carry out cryptojacking, a criminal crypto mining process.
This way, your computer system is vulnerable to a massive loss because crypto-malware is undetected, and stats suggests that cybercriminals have conducted many cryptojacking crimes through various crypto-malware.
How To Protect Cryptocurrency From Hacking?
Considering your safety in the crypto world is quite possible with a bit of effort. No doubt, the security of crypto is fundamental and robust. But hackers still have room to harm you. But there’s a way to ensure your safety. We have enlisted some crucial safety tips to keep yourself away from any potential harm that a hacker can cause you and your crypto wallet.
Hybrid Wallet Security:
Hybrid wallet security refers to having both online and physical wallets to store your crypto. While online wallets are effortless to operate, offline or physical wallets reduce the chances of cyberattacks.
Working with reliable cryptocurrency wallets, exchanges, brokerages, and mobile apps is essential. Also, consider the use of more crypto wallets with unique and complex passwords for each one. This way, you will narrow down the chance of any misconduct.
Moreover, you should stop using provider-hosted wallets as they may store your information on their site that hackers can attack easily.
It’s a rule of thumb; lesser and easier passwords will take less time to crack, while complex and more passwords will take more time. So, different passwords for different platforms will make it challenging to hack and make your wallets secure.
Cryptocurrency exchanges like Coingate are safe from cyberattacks when you exchange your crypto for gift cards, including Airbnb or others. Not just that, exchanging crypto for altcoins or stocks is safe with it, too.
This way, you can feel safe. But that doesn’t take the responsibility off your shoulders. You need something more; use strong passwords as well for your accounts so that hackers find it challenging to crack.
Also, you need to avoid sharing the secret key that you receive while initiating a mutual transfer between two accounts. It reveals your ownership, so never share the key with anyone.
Avoid Mobile Phishing:
Keeping your personal device safe from infectious files and ads is an excellent way to avoid mobile phishing. Mobile phishing is a phenomenon where cybercriminals launch ads to steal your login credentials.
Phishing, a social engineering attack, has several causes on mobile phones, ranging from texts and social media posts to email and ads. All of them are sources for mobile phishing, functioning to steal your login credentials.
After they get your login details, they can get into your crypto wallet and steal coins. Therefore, you need to stay away from becoming a phishing victim.
Cyber resilience refers to your capacity to retrieve the effects of cyberattacks on your wallet. As cybercrimes are staged and planned, you need to understand the vulnerability of your wallet to avoid attacks beforehand.
Before hitting the primary target, your crypto wallet, cybercriminals establish a foothold and then extend to the target. Therefore, when you understand the loopholes of your wallet, you will avoid a huge loss.
Can a Cryptocurrency Like Bitcoin Get Hacked or Shut Down?
Because the Bitcoin blockchain is regularly reviewed by the closed network, it is considered hack-proof. As a result, attacks on the blockchain are extremely unlikely. Blockchain technology is highly adapted to fend off hacker attempts due to its decentralized, distributed nature.
- A 51 percent attack would be one of these apocalypse scenarios.
- Since its creation, Bitcoin has never been hacked.
- Cryptocurrency-related interfaces, such as wallets, are still vulnerable to assaults.
- People and websites, on the other hand, have been hacked because they are simpler targets.
What is a 51% Attack in Blockchain Technology?
A 51 percent attack is arguably the most serious threat to blockchain technology. The transaction history of the Bitcoin network may theoretically be modified and overwritten if a single individual or organization were to succeed in gaining control of the bulk of the network’s mining power (hash rate).
To decide which transactions to allow and which to reject, a majority (i.e. 51%) is always required. This suggests that a majority of 51 percent of a blockchain’s distributed ledger might be changed to allow double-spending (the execution of the same transaction multiple times). However, achieving this circumstance is extremely difficult and unlikely to occur.
Can Cryptocurrency Be Stolen Or Scammed? How to Protest From Hacked?
However, there have been some ups and downs, as well as some serious concerns about the future of cryptocurrencies. Whether these digital tokens may be stolen, hacked, or conned is one such question. These, like fiat currency or cash, have the potential to be stolen, therefore you need to take a few precautions to keep yourself safe.
How to Avoid Scams When Investing in Cryptocurrencies
It’s a fraud whenever someone, a corporation, or a group of people promises you a guaranteed payoff, such as “we’ll double your money in X a number of days.” No single entity can claim to have complete control over the behaviour of an entire industry.
Have you been offered free money? If you said yes, it’s possible that they’re attempting to deceive you. You should not deal with them or trust them at any cost.
While the preceding comments may lead you to feel that spotting fraudsters are simple, there are specialized groups whose sole objective is to defraud unsuspecting traders or investors. As a result, always invest through a licensed cryptocurrency exchange and keep your digital assets in a cold wallet.
Do your homework before you put your trust in anyone. Look into the company’s name on Google, read reviews, and see if they’ve been accused of scams before or if a complaint has been filed against them. Additionally, read as much as you can to learn how scammers have deceived investors in the past.
How to Prevent Such Cryptocurrencies Attacks?
To protect your transactions, always use a two-factor authentication solution. This will give your wallet/exchange an extra degree of security.
Proper wallet management
You should keep the majority of your money in multi-signature cold storage wallets. Hot wallets, which automate withdrawals, should have the bare minimum of funds because they are the most vulnerable to hacking.
Use separate wallet addresses for each platform
Using separate wallet addresses for each platform reduces your risk of losing money. Even if one platform is compromised, the other is unaffected. Don’t keep all of your tokens in one wallet.
Keep an eye on your wallet approvals on a frequent basis: If you are no longer staking in a DeFi project, remove the project’s access permissions from your wallets.
Ideally, these are harmful adverts or emails that imitate linked organizations/identities in an attempt to obtain your personal information for hacking. Add mandatory two-factor authentication checks for sensitive actions at the application level.
As the world is equipped with cryptocurrency, it reflects its growth and advancement. Well, you
have a responsibility to abide by safety precautions to avoid any loss. With the tips mentioned
above, you can keep yourself away from cyber criminals.