Crypto Security Experts Offer Guidance Amid Rising Hacks: Navigating the Crypto Scene Safely
Summary:
Crypto security professionals suggest new users can avoid the riskier aspects of the crypto space amid rising cryptocurrency hacks. Avoiding decentralized finance (DeFi) or decentralized exchanges (DEXs) initially, placing trust in reputable exchanges, using hardware wallets, enabling multi-factor authentication, and keeping personal data secure are among the recommendations for new users. Interestingly, a worrying increase in phishing incidents has been observed. Also, investments in projects with security audits are generally considered safer as these projects are less prone to scams.
Alarming incidents of crypto hacks are discouraging some potential users, but experts in crypto security contend that measures can be taken to bypass the perilous aspects of the crypto sector. Recent data established by Crypto.com on January 22 showed that by December 2023, more than half a billion users had entered the crypto scene, marking a significant 34% rise from January of the same year. The increasing adoption of digital currencies prompts many to question how best to safeguard their investments. Cybersecurity firm Hacken’s director of services, Luciano Ciattaglia, counselled newcomers in the digital asset industry to be cautious, especially in the area of decentralized finance (DeFi) or decentralized exchanges (DEXs). Ciattaglia emphasized the importance of doing thorough research and using established exchanges or wallets. Trustworthiness becomes crucial when entrusting funds into these platforms. Reiterating a similar notion, CertiK co-founder Ronghui Gu suggested that new investors worried about safety issues should gravitate towards established exchanges and wallets. Furthermore, he recommended additional measures like hardware wallets, which offer excellent security by storing private keys offline, multilevel authentication and maintaining strong passwords. Gu also noted the importance of vigilance towards online sharing of personal information and awareness of potential phishing scams. A recent CertiK report, dated April 3, documented a worrying number of 83 crypto phishing incidents in 2024's first quarter with frightening sophistication and success. In addition to the aforementioned precautions, Ciattaglia stressed the need to ensure that investments are placed in projects that have undergone security audits. He mentioned that such audited initiatives with active bug bounty programs are less prone to perform 'rug pull' scams. Hacken's latest quarterly analysis echoed this sentiment as it revealed a concerning statistic: about 56% of projects that were compromised during the first quarter of 2024 did not require security audits, leaving a significant number of the involved companies with unresolved vulnerabilities.
Published At
4/24/2024 1:57:43 PM
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