![]() ![]() There’s too much money to be made (or stolen) and in some cases, the hackers have some pretty powerful interests behind them. You can rest assured though that the hackers won’t have given up. The top exchanges also have insurance which means that if a breach does occur, any investors affected will be reimbursed.īinance Hack of $40m. The private keys containing access to the digital gold is treated as securely as though it were the real solid shiny stuff. The drives with all the users’ private keys are then sometimes stored in secure vaults with air gaps and armed guards. ![]() Two-factor authentication is usually required to log in and withdrawals are frequently limited to specific, whitelisted wallet addresses.Īny exchange worth considering will keep most of its funds in cold storage, without access to the internet. Most insist that users complete KYC (know your customer) procedures when registering. The best exchanges make security one of their top priorities. The private keys to your crypto are held by the exchange and if something goes wrong there is little or nothing you can do about it.įor Guy’s take on the most secure hardware wallets, be sure to check out his video on his top five hardware wallet picks. But it’s worth remembering that, if you store your coins on an exchange – no matter how well-regarded and secure it may be – you do not control them. There are plenty of exchanges out there that are either downright shady, or else don’t invest enough in their security, or are simply poorly run. The QuadrigaCX scandal reads like a treatment for a Hollywood movie, but caused untold misery to those it affected. In other cases, the exchange itself has been the villain of the piece. Lessons have been learnt and security tightened, but the threat remains. These are two of the worst examples, though there have been other, more recent breaches. In both cases hackers made off with millions of dollars in crypto and investors were left staring in dumb horror at their computer screens. Gox fiasco, while the BitGrail saga still resonates throughout the space. Many grizzled crypto veterans still shudder to remember the Mt. Exchange hacks have happened before, with catastrophic consequences. In the unlikely event that the worst does happen, it’s not as though you’ve lost the family silver, though some crypto enthusiasts might be thinking, “psssh, forget the family heirlooms, losing the family Bitcoin is worse!” The best exchanges have good security procedures in place and spend a lot of money every year on maintaining them. If you have a few hundred dollars locked up in your portfolio and it’s all kept on a reputable exchange then you don’t have too much to worry about, especially if you have all the extra two-factor authentication options enabled and have set up anti-phishing emails if your exchange offers that feature. You log into your exchange account every so often to see how it’s all doing and ponder your next move, pondering perhaps what the best crypto wallet is. Maybe you have a stack of Altcoins that you plan on going all pirate-like with and burying them someplace safe for the next decade. You have a healthy amount of ETH ready for the launch of version 2.0 next month/year/lunar cycle. That BTC you bought a couple of years ago sits slowly powering up its thrusters for another moon shot. Your crypto portfolio is coming along nicely. 5.2 What are the Types of Cryptocurrency Wallets?.4 Top 5 Best Crypto Wallets for Cold Storage Solutions.
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