Cryptocurrency has been immensely popular because of the benefits it provides to people. No one is negligent from the fact that cryptocurrencies are not regulated. However, this has increased the chances of cybercrimes. If you are still confused and looking for an answer to “Can cryptocurrency be hacked”, here you will find everything.
A cryptocurrency is a digital form of currency that runs on blockchain. People worldwide invest in cryptocurrency and earn huge profits through it. Bitcoin and Ethereum are amongst the most famous cryptocurrency. We cannot stop saying that though cryptocurrency is beneficial, it is also exposed to many risks like hacking or its volatility leading to losses.
The popularity of cryptocurrency has been a contributing factor in encouraging cybercriminals. These criminals are working to find out ways to attack and hack cryptocurrency. Crypto community preference is to self-regulate and self-control, making it a little easier for hackers to hack cryptocurrency.
We will discuss whether Can cryptocurrency be hacked and also if it could be prevented from hacking or not. So, read the article “Can Cryptocurrency be hacked” to get more details.
Can Cryptocurrency Be Hacked?
If you have still not got an answer to this question, can cryptocurrency be hacked or not? Then the answer is yes. Cryptocurrency is subject to hacking. Cybercriminals are finding different ways to hack cryptocurrency. A hacker may exploit smart contracts, chain, exchange, or withdraw cryptocurrency illegitimately. All these can be ways of hacking. The most common type of crypto hacking is social engineering and phishing attacks.
Cryptocurrencies use a public ledger or a blockchain technology that helps to record and verify transactions. Blockchain is reviewed constantly by various uses, making it difficult for hackers to attack or hack. But blockchain networks that use the Proof-of-Work mechanism, 51% of attacks involve attackers getting access to more than 50% of hashing power. They can easily manipulate data when they gain control. However, it is not possible for established blockchains like Ethereum or Bitcoin.
Hackers somehow find ways to attack cryptocurrency. Blockchain was considered highly secure, but hackers find ways to access blockchain in several situations. We can see cases of blockchain hacking taking place nowadays. Users need to be cautious about this as they may suffer huge losses.
The most common problem is the non-regulation of cryptocurrencies. Cryptocurrency is not regulated and thus leads to such scams or hacks. There are many cases when cybercriminals have attacked people. But the question is whether there is any solution to prevent these attacks or not. So, let us find it out.
Can We Prevent Cryptocurrency Hacks?
After answering whether can cryptocurrency be hacked, the most important question is whether we can prevent these attacks or not. Well, cryptocurrency hacking can be prevented. The best solution is to go for two-factor authentication. To secure your transactions, you can activate a two-factor authentication system. It will help you put an extra security layer to protect your cryptocurrency or wallet.
Another step to prevent such attacks can be the proper management of wallets. You need to ensure that you keep the least fund in hot wallets. These wallets have an automated withdrawal that makes them more prone to such hacks. You can also choose different wallet addresses for different platforms. Try to avoid multi-cryptocurrency wallets as they are likely to be more susceptible to hacking. Separate wallet addresses can help keep you safe if one platform is hacked. The other wallet is safe.
You also need to be careful with links or malicious ads that try to get your personal information and data. If you are no longer working on a decentralized finance project, you should make sure that the access rights to your wallet for the project should be canceled. If you take care of these things, it will surely help you to prevent any cryptocurrency scams and hacks.
Can Blockchain Be Hacked?
Blockchain is extremely secure and cannot be altered. But there are recent cases that have shown hackers hacking Blockchain networks. It is quite surprising but sadly true. Blockchain and cryptocurrency have gained a lot of popularity nowadays, and ultimately it is something hackers are taking into their targets. If there is insufficient security, it can lead to blockchain hacking. These hacks are increasing drastically. Users need to be cautious when they trade on exchanges.
Can Crypto Wallets Be Hacked?
There are many cases of crypto wallet hacking. Hackers use various ways of hacking your crypto wallets. The most common ways are phishing attacks, using a fake hardware wallet, malware, etc. It is easy for hackers to target newcomers in the crypto market. They usually don’t know about using the platform and hence fall into the hacker’s trap. One needs to be very careful while using such platforms. The only way to reduce these risks and hacks is through the prevention measures that we have mentioned above. If you take care of these things, the risks and hacks could be minimized greatly.
Though there are many risks involved with cryptocurrency, people are still using these to earn great revenues. This is somehow encouraging hackers to find innovative ways to hack cryptocurrency. We need to be careful to reduce these hacks. Be cautious while dealing in cryptocurrencies and take every step with safety. In this article, we have discussed can cryptocurrency be hacked and how such hacks can be prevented. If you know any other solution for preventing these hacks, tell us in the comment box below.
Frequently Asked Questions
Q1. Can Cryptocurrency Be Hacked Or Not?
A. Many cases are there when cryptocurrency got hacked, as the recent hack in 2020 for cryptocurrency KuCoin.
Q2. Has Coinbase Ever Been Hacked?
A. Yes, a hacking incident took place when some amount was stolen from a couple’s Coinbase account.
Q3. Has Kraken Crypto Exchange Been Hacked?
A. No, Kraken has never been hacked. The exchange is known to keep most of its currency offline.