Since the very inception of cryptocurrency, the online platform of exchanges has been something akin to a battleground. There goes on about a million transactions per day, and each one in itself holds a certain risk factor. No exchange present till date can be labeled entirely immune to the notorious hackers and malware targeting their crypto funds.
To actually assess how much loss one can suffer if an exchange falls victim to hackers or malware, let us look into some notable cases of exchange hackings. These biggest mistakes made by others taught us powerful lessons and helped us develop our BTCNEXT, a next-gen crypto exchange that gives paramount importance to security with its state-of-the-art features. It offers reliable systems to its users, thus safeguarding their funds, something which other exchanges have failed to do time and time again.
Exchanges are soft targets for hackers
Cryptocurrency exchange hacks are a growing problem with the loss of funds due to these surpassing $1.3 billion in total with the year 2018 contributing 61% of that loss. Almost 80 new cryptocurrency exchanges were launched in 2018.
The failure rate of digital currency exchanges is substantial as well. There have been numerous cases of hacking and stealing of crypto assets in recent times, which cannot be overlooked under the guise of the otherwise exponential growth of the industry. Moreover, whether crypto exchange platforms learn from past mistakes is a different issue altogether.
No matter how spectacular the benefits receivable, the loss suffered when an exchange is hacked far exceeds the profits earned by traders. Hence, the security measures taken by exchange are what one should look for while selecting a platform for dealing in cryptocurrency.
Exchange blunders due to poor security
There have been many cases of exchange hacks that have hit headlines due to the amount of money stolen,