If 2022 is a hard year for crypto, it’s paradoxically the best one for hacks, according to Chainalysis. While the market slows and the price of digital assets slowly dump, hack numbers are increasing. In fact, since January, there have been 125 recorded hacks responsible for stealing more than $3 billion. Continuing at this rate, hacks in 2022 will exceed those in 2021.
What is Hacktober?
Two years ago, centralized exchanges were the target of most illegitimate activity, but now hackers are looking at the DeFi space and its protocols as victims of their illicit deeds. Unfortunately, there was a hack a day for the first 11 days of October 2022, leading many to coin the phrase Hacktober.
Protocols falling to these hacks include QANPlatform, Rabby, Mango Markets, and Temple DAO. These four alone totaled $115 million in stolen funds out of the more than $718 million that was recorded from October 1–11.
The only other month that even came close was March 2022, which totaled roughly $700 million for the entire month! For even more details, head this way.
Security continues to be a major challenge for those in the cryptocurrency space, which is why so many protocols place such an emphasis on keeping your information safe. As an investor, you should be aware of the dangers of investing and take the necessary precautions to protect yourself, your data, and your assets.
How to protect your crypto?
It’s incredibly important to protect your assets, whether they’re digital or physical. If you wouldn’t leave your money on the sidewalk, don’t leave it in an online wallet without taking precautions.
The recent collapse of FTX, the former second biggest CEX in the Cryptocurrency World, is here to remind us that: “not your keys, not your coins”.
The same goes for your data; if you wouldn’t give your social security number to a stranger, don’t enter it into a website or app without knowing how it will be used and protected.
The current state of security in the cryptocurrency space is abysmal. With hacks becoming more and more common, it’s essential for investors to take precautions.
One of the best ways to protect your crypto assets is to use a multisignature address — an address that is associated with more than one private key.
Such a scheme requires two or more private keys to sign and send a transaction, adding security to the process. Thus, if hackers want access to your reserves, they’re going to need several keys to do so. Similarly, multisignature ensures no one in the firm can unilaterally withdraw funds from the account.
Additionally, do your research on the projects you’re interested in and make sure to only invest what you can afford to lose. Never accept every transaction or sign everything that comes your way without thorough analysis and thought.
If you take nothing else away from this article, remember to always keep your security in mind. Whether you’re investing in crypto, buying a new car, or simply creating a new email account, always think about how you can protect yourself from scams, hacks, and identity theft.
Tozex is a platform with multiple services and a great community, where people collaborate, innovate, stay informed, and protect themselves with multifactor authentication methods and multi-signature schemes. Sign up now and join the Tozex community today!
What are your thoughts on the current state of security in the crypto space? Please let us know in the comments below!