Cryptocurrency exchanges are a hot target for hackers. In fact, over the past few years, there have been numerous cases of cryptocurrency exchanges being hacked. Millions of dollars have been stolen, and in some cases, the exchanges have gone bankrupt. If you’re thinking about investing in cryptocurrencies, it’s important to be aware of these hacks so that you can protect your investment. In this blog post, we will discuss 8 of the most notable cryptocurrency exchange hacks.
What Is Cryptocurrency Exchange?
A cryptocurrency exchange is a platform where users can buy and sell cryptocurrencies. There are many different types of exchanges, and each has its own strengths and weaknesses. Some exchanges only offer a limited selection of coins, while others have hundreds of coins listed. Some exchanges are very user-friendly, while others require more technical knowledge to use.
What About Cryptocurrency Exchanges and Hackers?
Yes, cryptocurrency exchanges can be hacked. In fact, there have been many cases of exchanges being hacked and millions of dollars being stolen. The most famous case is the Mt. Gox hack, which resulted in the loss of 850,000 BTC (worth over $400 million at the time). Also, according to hedgewithcrypto at least 46 cryptocurrency exchanges have suffered major hacks from 2012. Also, it is worth mentioning that even big and well-known exchanges are not immune to hacks. In January 2018, Coincheck, one of the largest cryptocurrency exchanges in Japan, lost $530 million worth of NEM tokens to hackers.
What Are Some Common Cryptocurrency Exchange Hacks?
Now that we’ve discussed some of the ways you can protect yourself, let’s take a look at some of the most common cryptocurrency exchange hacks.
1) The Mt. Gox Hack: In February 2014, Mt. Gox, one of the largest cryptocurrency exchanges at the time, was hacked and 850,000 BTC were stolen. The hack caused the price of Bitcoin to crash and Mt. Gox eventually went bankrupt. This hack is widely considered to be the most damaging hack in cryptocurrency history.
2) The Coincheck Hack: In January 2018, Japanese cryptocurrency exchange Coincheck was hacked and $530 million worth of NEM tokens were stolen. This one hack accounted for over 40% of all NEM tokens that were in circulation at the time. Additionally, the hack caused the price of NEM to crash.
3) The Bitfinex Hack: In August 2016, Bitfinex, a cryptocurrency exchange, was hacked and 120,000 BTC were stolen. This hack caused the price of Bitcoin to crash by 20%. Also, many users lost their money as they were unable to withdraw their funds from the exchange.
4) The Bithumb Hack: In June 2018, South Korean cryptocurrency exchange Bithumb was hacked and $30 million worth of cryptocurrencies were stolen. This hack caused the price of Bitcoin and Ethereum to crash. Ethereum was especially hard hit as it lost over $15 million worth of value in just a few hours.
5) The YoBit Hack: In April 2018, Russian cryptocurrency exchange YoBit was hacked and $600,000 worth of cryptocurrencies were stolen. This hack was notable as it resulted in the loss of over half a million dollars worth of Dash. Dash is a cryptocurrency that is known for its security, so this hack was a big deal. Also, the hack caused the price of Dash to crash.
6) The Zaif Hack: In September 2018, Japanese cryptocurrency exchange Zaif was hacked and $60 million worth of cryptocurrencies were stolen. This hack was notable as it resulted in the loss of over half a million dollars worth of Bitcoin. Additionally, this hack caused the price of Bitcoin to crash.
7) The Coinrail Hack: In June 2018, South Korean cryptocurrency exchange Coinrail was hacked and $40 million worth of cryptocurrencies were stolen. This hack was notable as it resulted in the loss of over $30 million worth of Ethereum. Additionally, this hack caused the price of Ethereum to crash. Additionally, this hack caused the price of Bitcoin to crash.
8) The Bancor Hack: In July 2018, Swiss cryptocurrency exchange Bancor was hacked and $23.50 million worth of cryptocurrencies were stolen. This hack was notable as it resulted in the loss of over $12 million worth of Ethereum. Additionally, this hack caused the price of Bancor to crash.
How to Protect Yourself From Cryptocurrency Exchange Hacks?
Now that we’ve discussed some of the most common cryptocurrency exchange hacks, let’s take a look at some of the ways you can protect yourself.
Here are some tips:
- Don’t keep all your eggs in one basket. Diversify your portfolio across different exchanges.
- Enable two-factor authentication (also known as “Two-step verification”) whenever possible. This adds an extra layer of security to your account.
- Be aware of phishing scams. These are emails or websites that pose as a legitimate exchange in order to try and steal your login information. Don’t click on any links from an email unless you’re absolutely sure it’s legitimate.
- Don’t store your cryptocurrencies on an exchange for an extended period of time. exchanges are a hot target for hackers. If you must store your cryptocurrencies on an exchange, spread your holdings across different exchanges.
- Keep your software up to date. This includes your operating system, web browser, and any wallets or exchanges you’re using. Hackers are constantly finding new ways to exploit vulnerabilities, so it’s important to stay ahead of the curve.
- Don’t share your login information with anyone. This includes your password, two-factor authentication codes, and any other sensitive information.
- Be careful with public Wi-Fi. Hackers can set up fake Wi-Fi networks in order to steal your login information. Only connect to trusted networks, and don’t login to any sensitive accounts while on public Wi-Fi.
- Don’t forget to withdraw your cryptocurrencies from an exchange before you close your account. Many users have lost their funds because they forgot to do this. Also, make sure you have a backup of your login information in case you forget your password.
- Consider using a hardware wallet. These are physical devices that store your cryptocurrencies offline. This makes them much more difficult to hack.
Hopefully these tips will help you stay safe when trading cryptocurrencies. Remember, it’s important to always be aware of the risks involved. Crypto exchanges can be hacked, and your funds can be stolen. So take whatever steps you deem necessary to protect yourself. Thanks for reading!
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