What are some exchanges and wallets doing right that others aren’t?
What are some exchanges and wallets doing right that others aren’t?
The recent WaziriX security hack got me thinking again: when will we have sanity in this industry?
While we are anticipating the ETH ETF and the potential price rally that could follow, another major security breach has hit us hard. $234.9 million may not be a market-moving amount, but it will affect people’s perception of the industry, especially as crypto is becoming accepted as an asset class via spot ETFs.
More than $800 million has been drained since the beginning of this year, excluding some undisclosed figures, particularly from BlockTower Capital.
This is worrisome and makes me want to ask: what are the few exchanges and wallets that are getting it right doing differently from the rest?
Some of those money heists are orchestrated by insiders, and then they blame it on the hackers. I refuse to believe that the most of the time, some lucky hacker just lands on some vulnerability and drains Millions worth of crypto. Lets been honest, How can over $100M get drained from an exchange without immediately raising flags or internal controls.
If any other ordinary user like me, or you even tried to withdraw $1M, I am p[pretty sure they would carry out an immediate manual verification before sending the fund to the external address.
That’s the thing with custodial wallets/services, you’re pretty much trusting them to keep your crypto safe and they get targeted by hackers a lot esp the bigger the exchange becomes as that could mean bigger bags which is very attractive to hackers.
You’re better off getting a non custodial and non hot wallet/s where you keep most of your coins and never use custodial services as a means of storage. If your situation allows, you could try to decrease your usage of custodial services as well.