Crypto investors, take heed: the specter of cryptocurrency theft looms ever larger, and safeguarding your assets has never been more critical.
You’ve likely heard unsettling stories of individuals falling prey to cryptocurrency theft at the hands of hackers. To truly grasp the nature of this threat, it’s vital to understand how cryptocurrencies operate.
Public and Private Keys
Cryptocurrencies operate on the foundation of public and private keys. Think of the public key or address as a numerical and alphanumeric string, akin to a conventional bank account number. This address is where cryptocurrencies can be sent.
Complementing the public key is the private key, a critical element that authorizes transactions. Drawing a parallel, the private key resembles the PIN code of your bank card, a safeguard that you must enter when making in-store payments. Thus, whoever gains possession of these private keys wields access to your crypto holdings.
Cryptocurrency theft with Online Wallets
Let’s delve into the harrowing experiences of two victims who entrusted their cryptocurrency to online wallets, only to have their digital assets plundered.
The first victim, utilizing a wallet on the Blockchain.com website, awoke to a starkly diminished balance. Every last Bitcoin had been spirited away to an unfamiliar address, resulting in a staggering loss of 22,000 euros. Regrettably, Blockchain.com could offer no recourse, asserting the victim’s device had been compromised and the fault lay not with the platform.
Another victim suspects malware infiltrated his computer, granting hackers access to his system. Despite a well-protected account, fortified with a unique password and two-step verification, he bore witness to 24,000 euros in cryptocurrency vanishing via Binance, routed to an unfamiliar wallet. Yet, Binance disavowed any culpability, suspecting the customer’s device was inadequately secured, leaving them vulnerable. In this scenario, the Binance systems failed to detect any suspicious activity concerning the cryptocurrency theft.
The police confirm a rising tide of these incidents, a consequence of the growing adoption of cryptocurrencies. Statistics reveal victims lose an average of six to seven thousand euros to these crimes.
Choosing the Safest Path: Hardware Wallets
For those who have amassed a substantial cryptocurrency portfolio, diversification across multiple wallets is prudent. Excessive reliance on exchange-based online wallets should be approached with caution. When hackers infiltrate your account, they can redirect your assets to their own wallets. Moreover, the exchanges themselves can be susceptible to breaches. Notably, a report by Atlas VPN cites the staggering theft of approximately $1 billion in cryptocurrencies in the third quarter of 2021, encompassing vulnerabilities in blockchain systems.
In the crypto realm, the adage rings true: “Not your keys, not your coins.” When utilizing an online wallet on an exchange, you forfeit control over your investment, as you lack access to the keys of the wallet. For the utmost security, hardware wallets prove to be the wisest choice.
Hardware wallets securely store private keys and facilitate transaction authorization within the device itself. These keys never traverse the internet; instead, communication is established via QR codes, ensuring unparalleled security. The NGRAVE ZERO hardware wallet, heralded as the most secure option available, remains entirely disconnected from the internet. Its recent release drew tremendous demand, with the device currently out of stock. Nevertheless, a waiting list is open for those eager to secure this coveted device, with notifications sent when new batches become available. Read our NGRAVE ZERO review.
