Cybersecurity in Crypto space

Even though the underlying technology behind the Blockchain network is highly secure, cryptocurrencies are not immune to security attacks. Learn about the various threats, and one can ensure cybersecurity in crypto space and how to safeguard yourself.

Blockchain technology, cryptocurrency, and cybersecurity have gained huge popularity in the last few years. Investors are flocking in to invest heavily in whatever new crypto product or service is launched despite its volatile nature. In theory, the technology behind the blockchain platform is highly secure. But still, many crypto trading platforms have been attacked in the past few years. Cybersecurity in crypto space is most important with the increasing trend of crypto trading enthusiasts.

According to a report from ZDNet, major crypto trading platforms like Poloniex, Helix, Prometei, and IOTA etc., have all faced the impact of security attacks like data breaches and botnet attacks. In August this year, hackers used a security vulnerability to get into the Decentralized Finance (DeFi) platform Poly Network and went away with 600 million USD. It is considered the biggest crypto heist to date.

Security Issues in The Crypto Space in 2021

Most people assume that blockchain technology is highly secure and invincible. Even though it is theoretically true, it is not immune to cyberattacks. While cryptocurrencies pose as a new asset model for investors, there are various cryptocurrency cybersecurity risks (issues and threats) associated with it. Let us look at some of the security issues below:

  • Hacking: Since cryptocurrencies hugely rely on technology, they are highly prone to cybersecurity attacks. Hacking is one of the major security risks involved, as many investors have lost their investments due to hacking attacks on exchanges.
  • Blockchain Endpoint Issues: Apart from hacking, the next major issue is the vulnerabilities in the blockchain endpoints. At the same time, the blocks in the blockchain are completely secure, whereas the third-party wallet that you use to store your cryptocurrencies may not be secure. Hence you need to choose an exchange that provides an in-built crypto wallet or choose highly secure and popular wallets like MetaMask Wallet and TrustWallet etc.

There are other security issues like the other kind of attacks –

  • Routing Attacks: Blockchain networks largely depend on the on real-time transfer of huge amounts of data. Threat actors knowing that the blockchain network is highly secure, intercept the data during the transmission to the ISPs. In this kind of attack, the network participants are generally not aware of anything. Routing attacks are particularly detrimental as they could cause severe damage without being detected.
  • 51% Attacks: Computing power is the key to gaining control over blockchain’s has rate. Hence, cybercriminals use various tactics to gain the majority of the blockchain’s hashing power. This process of gaining a majority in a mining pool is called as 51% attack or a majority attack. To avoid these attacks, choose exchanges that don’t employ Proof of Work (PoW) consensus mechanism.
  • Phishing Attacks: Phishing is considered one of the most common cybersecurity threats and the crypto space is no exception. A phishing attack is probably an attempt to steal your personal, business or other sensitive information. In the crypto space, cyber criminals gain access to crypto wallet owners and send an email posing as an authoritative source to request the user credentials through phishing emails.

How To Safeguard Yourself From Cyber Attacks In the Crypto Space?

Listed below are some suggestions from cybersecurity crypto experts for people just starting with cryptocurrencies:

  • Always do your homework and do detailed research about the exchange before investing your hard-earned money.
  • Be wary of new crypto exchanges.
  • Always pay attention to any email that is linked with your crypto account. Make sure to double check the email and see if the hyperlinks go where they intended to go.
  • Treat your private key as a sacred item and keep it secure always.
  • Learn the basics of cryptocurrency and blockchain before investing.

Final Words

Cryptocurrency cybersecurity has been one of the major talks of the town for a while now. Cryptocurrencies like Bitcoin, Ethereum, etc., are generally safe. However, it would be helpful to take extra caution like treating your online banking account. Invest in only the popular crypto exchanges and exercise caution when revealing your crypto details to anyone. With Metaverse drooling worldwide and increasing non-fungible tokens, there might be chances of increasing cybercrimes. So, each individual needs to take and be very careful while trading cryptocurrencies, making cybersecurity in crypto space the primary aspect.

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