Beware of crypto-exchanges as large scale hacks are on the rise


Judging by the comments and views we receive on cryptocurrency items and social media intelligence, Zimbabwe has a very thriving and vibrant cryptocurrency community. Many of these people use different wallets to store their digital assets, and most of these wallets are provided and managed by so-called exchanges.

Exchange makes it easy

As mentioned earlier, most people use wallets provided by crypto exchanges. These wallets make things easy compared to the traditional approach. They cover and abstract away some of the overheads and awkward details that you would otherwise have to deal with if you were to manage your own wallet manually.

As the name suggests, cryptocurrencies are based on cryptography. That means, for those in the know, there’s a fair amount of math involved, and if you’ve studied logarithms and simultaneous equations in Form 3 and New General Mathematics wasn’t your favorite book, you don’t need to bother reading the underlying gibberish to understand.

In the old days, dealing with cryptos was very similar to dealing with GNU keys or using Linux. You had to manually meddle with wallets and make sure your keys were safe. Many bitcoins worth hundreds of millions are actually lost because the owners can no longer move them because they lost the necessary keys.

That’s one reason why exchange wallets are so popular. All you have to do is click a few buttons, fill in a few details, and you’ll be given a wallet address to give out to people. They use their own wallets and exchanges to send you the bitcoin and magically it arrives. However, this abstraction turns out to be dangerous and downright catastrophic for many people.

Exchange crypto raids are on the rise

There were times when noobs lost the coins in their wallets, but generally such small robberies are no longer worthwhile. Hackers now have bigger targets on their websites. Crypto exchanges often have hundreds of millions of crypto assets in their clutches. This makes them lucrative targets for sophisticated hackers who are now hitting them with alarming regularity.

Consider the recent raids and the amounts involved:

  • A staggering $ 600 million was stolen from the Poly network that month. Fortunately, the friendly hacker returned all the money.
  • Sometimes it’s not even a hack, the owners of the network might just have decided to get your crypto and have a payday. Ameer and Raees Cajee of South Africa, the South African brothers as they are known today, took $ 3.6 billion of crypto from their unfortunate victims. That is how much money we put in our annual national budget, ladies and gentlemen.
  • Liquid Global lost about $ 100 million in crypto last week
  • Then there’s the famous original MtGox heist that lost $ 450 million worth of Cryto. It’s worth many times over on the market these days.
  • There were even rumors that the Golix local switch was hacked or a key / password was lost.

In short, when you keep your cryptocurrency in an exchange-provided wallet, it is technically like money in the bank. As we probably all learned the hard way in 2008 and afterwards, when banks like ZABG, TimeBank and CFX went under, the account holder suffers.

If you have crypto, you want to be safe, and don’t intend to postpone it for a while, it’s time to learn about cold storage and offline wallets. It’s complicated, but it can save your skin as far as robberies are concerned.

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