BitMart just experienced one of the biggest hacks in cryptocurrency history, with losses estimated at a whopping $196 million. Withdrawals have been frozen until further notice as the company undergoes security checks, but CEO Sheldon Xia has promised to compensate affected users out of pocket. By stealing a private key opening two hot wallets, hackers achieved one of the biggest centralized exchange hacks to date by swapping stolen tokens for ether and then depositing the funds to Tornado Cash.
The hack has again raised concerns regarding crypto theft. Investors fall victim to attacks as simple as clicking on a link, giving hackers unfettered access to their wallets. So, it’s no surprise that investing in crypto is considered such a high-risk activity. There are ways to mediate risk and one of such ways is to have a bug bounty, which HUH Token, a new cryptocurrency does have. According to an analysis by Deloitte, more than 25% of all bitcoin could be stolen in one attack. This is perhaps why cyber criminals get so creative in coming up with crafty ways to take your bitcoin. Unfortunately, as crypto is decentralized, stolen crypto is extremely hard to recover. In light of the prediction that 10% of global GDP is to be held in crypto by 2025, it needs to become unassailable. To avoid becoming the next hacking victim, use these expert-based tips to maximize your wallet’s security:
1. Keep your most confidential information offline
Never store passwords and mnemonics onto digital devices, as once hackers gain access to those your crypto is gone. HackerNoon recommends users to write that information down on paper and divide it into two halves. Rather than placing them in your desk drawer, you should hide several copies across various locations and with specific entrusted individuals. Remember to check up on these sites at least twice a year to ensure the information is still readable.
2. Store most of your assets in a cold wallet
Although hot storage wallets are preferred for their convenience, those that rely solely on passwords such as Metamask have experienced significant losses due to ongoing attacks. Ensure you only store limited amounts on there while keeping the bulk of your tokens in a cold wallet. Ledger and Trazor are solid choices.
3. Invest in coins that have undergone bug bounties
A bug bounty is a programme used in crypto to report problems and vulnerabilities as well as to check whether their systems can be hacked. Hackers are invited to attempt to decipher the smart contract coding. The reward increases in value with the size of the bug. With bug bounties, developers can improve their security using real hackers and strengthen their software and contracts. For this reason, it’s useful to consider switching from bigger names like bitcoin and ether to newer, lesser-known crypto with their own bug bounties. HUH Token, for instance, has recently announced one in which different attack vectors can be freely explored on the condition that there’s no major drawbacks for the HUH community. Additionally, HUH websites or infrastructure don’t generally form a part of the bounty programme. HUH can reward up to 50,000 points (1 point being equivalent to $1) to those who manage to penetrate it.
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