Will Cryptocurrency Become Cybersecurity’s Next Big Threat?
Over the years, there have been many high-profile hacks on cryptocurrency exchanges. Some of these hacks can cost an exchange a billion dollars. When people hear these kinds of headlines online or on the news, they stop investing in cryptocurrency and thus don’t realize their ambition.
In addition, the fear of losing their investments instantaneously to hackers puts them off. As a result, they stick with property, shares, and stocks. Then, to some extent, cryptocurrency is somewhat of a risk or threat to cybersecurity. It is because people cannot hide from these kinds of headlines and numbers.
However, there are numerous ways that threats to cybersecurity are being mitigated in the digital currency sphere. At the same time, there are many reasons why people should still make the move.
The crypto wallet is the first place to start. It ensures your cryptocurrency is safe and secure. In order to protect the cryptocurrency you keep in these wallets, there are many things you should do — for instance, don’t use public Wi-Fi as well as don’t keep codes stored electronically. However, you still need a wallet, which boasts an amazing safety record. So, if you are looking to buy cryptocurrency, you need a safe wallet. It is a popular option, which won’t let you down.
Exchange Contingency Funds
According to Forbes Magazine, hackers are making substantial efforts to target exchange platforms. However, exchanges like ours have always a contingency plan in place. Additionally, it is a common practice for popular exchanges in order to leave cryptocurrency in reserve in the hacking event. What does this mean? Simply put, the exchange will redistribute its contingency pot among those who are victims. This means you will get your money back just like you would get it back if your fiat or regular currency was stolen.
Some wallet providers in the market will hack themselves. They will make the breach to steal the cryptocurrency of their most vulnerable clients. Does this sound bad to you? Well, it’s not as bad it sounds. Wallet providers do this for the protection of customers who are careless with safety and security – so that the customers can hold on to cryptocurrency while there are numerous attacks taking place anywhere else – only to hand the cryptocurrency back when your crypto account has been secured.
Exchanges are Now Insured
Many exchange platforms are seeking insurance against threats and hacks. This is one of the key steps in the journey for completing cybersecurity for cryptocurrency because it will mean your crypto is protected in another way close to your regular fiat currency.
Exchanges Working Together
It is difficult for competitors to collaborate and work together with no personal gain. However, the cryptocurrency crowd has identified the need to keep all account holders protected and safe regardless of their competition. Crypto exchanges are looking for working together through sharing information and data of hackers — typically starting at the top and feeding down to small exchanges and other crypto-involved companies.
In conclusion, cryptocurrency might cause concerns from a safety or security perspective. However, it can be argued that cryptocurrency is much secure than most people perceive.