How secure are the cryptocurrencies?
Cryptocurrencies are quite safe than you may think. The main risk associated with the currencies is found on the exchanges that allow people to trade these cryptocurrencies. There have been many cases where the coins were hacked and a lot of money lost in the process. As a result, the market gap kept reducing with the spread of negative news about the coins. You can learn more about the effects of negative news on cryptocurrencies if you check this link right here.
One safety advantage that cryptocurrencies like bitcoins have is that it has transparent and easily accessible block chains. This helps to reduce cases of fraud since all transaction records can be seen by any person that wishes to. However, there are some cryptocurrencies that provide anonymity, and as a result, hindering transparency and security. It is important to note that there are companies that have purposed to decode transactions carried out by these cryptocurrencies that provide anonymity. This will help to reveal the identity of the anonymous user.
The dark web is also a major risk factor to the cryptocurrencies. Over the years a huge value of cryptocurrency has been lost through this web.
You should note that there is also malware that has been created to automatically mine cryptocurrencies from people’s computers without authorization and also hack the exchange service platforms.
Most of the attacks done on the cryptocurrencies are directed toward errors made when coding them. These attacks though dangerous, they also help cryptocurrency developers to notice loopholes that can be exploited hence they can fix them quickly before more losses are incurred.
It is important to note that most exchange sites lack proper security measures. This is mainly the case where an exchange service is on its start-up stage. At this stage a company may lack enough funds to invest in good security measures.
It is advisable that you store your coins in cold wallets rather than ‘hot ‘wallets. This is because a hot wallet is always connected to the internet and hence more likely to get hacked easily while a cold wallet is majorly a hardware bot connected to the internet.