How to Protect Your Crypto Exchange From Hackers

Because of the large increase in the value of bitcoin and other cryptocurrencies, there are more and more new investors, but also cyber-criminals attack cryptocurrency exchanges. Experts have many tips that can help you avoid being targeted by hackers. Hackers have so far attacked several cryptocurrency exchanges, causing multimillion-dollar damages. On top of that, as bitcoin transactions are non-refundable, it is not possible to simply get a refund of stolen money.

Crypto-security experts suggest keeping cryptocurrencies offline as one of the effective security measures.

Crypto wallet

Crypto-security experts suggest keeping cryptocurrencies offline as one of the effective security measures. We know that a wallet can be hot and cold. It is common for people to store their cryptocurrencies online, but this also poses a big risk because stock exchanges possess the private keys of their users, and if hackers get to it, the user’s assets disappear. What is a better option is to store cryptocurrencies on a wallet, ie on hardware-software that keeps them offline.

Fake applications

There are a number of fake trading apps, so if you’re not careful, you can run out of your money overnight. According to, the application is key to successful trading.

Double authentication

Double Authentication (2FA), also called two-step authentication or Multiple Authentication (MFA), is an additional layer of security that guarantees that you are the only one able to access your account. After setting this feature, you will be prompted for confirmation each time you sign in to an account from an unknown computer or other device or add an account to an app or service for the first time. An authentication message can be sent through an authentication application, such as Microsoft Authenticator on a smartphone, text messages, e-mails sent to another e-mail address, or by phone call, for which you will need to enter a PIN.

Phone or tablet protection

Only run and install applications from trusted sources, such as the app store on your device.

Update the devices, software, and mobile apps you use regularly. Many of the updates you receive are security fixes, so be sure to install operating system updates, as well as any software or application updates. Enable a lock feature on your phone or tablet that requires you to unlock your device with a PIN, fingerprint, or face recognition.

Identity theft

Beware of phishing attempts that trick you into submitting confidential information or clicking malicious links or attachments. Some examples of attempted identity theft look like messages from seemingly secure sources, such as banks or other official institutions. This message asks you to use your email address and password to log in to a fake site. Other scams look like emails from people you know that ask you to click a link or open an attachment. When you click a link in a message or open an attachment, your computer can become infected and an attacker can gain access to the content on your computer.

If you receive an email that looks suspicious to you in any way, do the following:

Keep the cursor on the link and look at the name of the website to which the link leads. Make sure this is the site you expect and that the site name is spelled correctly.

If you receive a message from someone you know, but it looks a little unusual, it could mean that your email account and contact list have been compromised.

Follow the precautions regarding confidential information

Do not send emails that contain confidential information, such as passwords, credit card numbers, passport numbers, or other identifying information issued by government agencies, such as a personal identification number or other tax-related identifying information.

Phishing and scam

The scam is a quick profit scheme in which a person, group of people or organization cheats other people or groups by providing them with false information when making an offer or offering a deal.

The target group of these scams are people of all professions, ages, education, and income. Scam scams are successful because they remind you of the real situation and because of that they can catch you unprepared. As the world becomes more connected thanks to the Internet, the number of scams on the Internet, as well as their types, is increasing. It is necessary to distinguish between internet scams and other threats on the internet such as viruses, trojans, SMS blockers, and so on. No program can provide one hundred percent protection, but users themselves must take a proactive stance in achieving their security on the Internet.

Scammers use phishing scams to gain access to your confidential information. Data such as bank account details, passwords from social networks, and the like can have great value for fraudsters. They give them free access to your finances and identity. Attempts at phishing scams are usually made via email. However, they can also be done over the phone or text messages, or through social networks.

Stealing API keys

Some traders use trade automation tools, called trading bots. To use such software, the user must create API keys with specific permissions for the bot to manage its balance.

There are different ways to steal user key APIs. For example, cybercriminals often create malicious “highly profitable” free trade bots to persuade users to enter their API keys. If the API key has permission to withdraw funds without IP restrictions, then hackers can immediately withdraw all cryptocurrency from the user’s balance.

Even without withdrawal approval, hackers can crust a user’s cryptocurrency by “pumping” funds through a particular trading pair of low-liquidity cryptocurrencies.

Final thoughts

Hackers do not stop inventing new ways to seize someone else’s digital property. Almost every month, new incidents of cryptocurrency theft or hacking of various crypto platforms occur. They use all possible holes and shortcomings in security systems or lack of attention to security by ordinary users. Now even hardware wallets are not a 100% security guarantee for your cryptocurrencies.

Criminals continue to steal cryptocurrencies through fake Chrome extensions, which are distributed online through ads on Google search engines. Therefore, it is very important to make sure that you have taken all the preventive measures that are in your hands.

Ricardo is a freelance writer specialized in politics. He is with from the beginning and helps it grow. Email: richardorland4[at]