Different Ways in Which Cryptocurrency Can Be Hacked

Image by Robinraj Premchand from Pixabay
3 years ago

Yes, there was a time when we thought that cryptocurrency was invincible and no one can hack this new invention.  But that is the way technology works. If something is created someone will find a way in which it can be broken through. The very nature of cryptocurrency that it will not be hacked makes us wonder how someone can hack into this technology. But yes, nowadays anything is possible and thus we must make sure that our wallets must be secure and safe from any attack by hackers and crypto thefts. Since all the cryptocurrency is stored in digital wallets it is what makes them vulnerable to frequent cyber-attacks.  Here are some of the different ways in which cryptocurrency can be hacked. You can click on the ethereum trader to learn more about bitcoin trading.

1)  Yes, one of the best ways to hack and steal cryptocurrency is by inducing people to give their access to information. This is possible by building a fake exchange on which people would give their personal information through which their accounts can be hacked. These Websites make sure that they look exactly similar and just like normal crypto platforms looking for trading. They even provide you with a fake confirmation mail to look authentic. This can be avoided by checking the domain name very carefully so that you are not scammed.

2)  Another way in which one can attack a person’s cryptocurrency is by undermining his or her SMS confirmation. During transit, these people hack the SMS and then steal the message. This can be done in a variety of ways like by choosing to clone a sim, using voice phishing to confirm the malicious transactions to recover and get through the crypto wallet.

3)  Sometimes hackers depend upon the old age phenomenon of malware infection. Sometimes the devices are hacked by sending keyloggers so that they can be used to steal passwords. Another method is cross-scripting. In this method whenever a new user enters a web page, they are automatically taken to notorious websites which seem to be identical to the original one and steal sensitive data or force you to download malware on your computer.

4)  One of the big disadvantages of not regulating exchange platforms is that there are so many it is very difficult to identify which one is legitimate and which one is fake. Bitcoin Era is an exchange platform that is a very secure and safe place to invest and trade your cryptocurrency.  Nowadays in the mobile age, it is very common to come across mobile apps with weak security features. These apps attract many users and they start shedding their personal information which then becomes prone to cyber-attack. Since many mobile phones do not have anti-virus software installed it becomes very easy to attack them.

5)  The most important way in which cryptocurrency exchange works is that every trader needs to pair his public keys and private keys. The private key, if lost to the holder who has access to them, can not even get his assets back. On the flip side, if those private keys are recovered by another user, then he or she can easily transfer all the earnings to their account. Again, the private key is stored in a crypto wallet, if those wallets get lost then again, those private keys are lost. The hackers employ different tactics such as browser extensions, and other system vulnerabilities which are taken advantage of. Many exchanges platform employ cold wallets that are not connected to our internet connection which can be kept in special devices, but again if we lose it, all our earnings are lost

Learning Outcome

As soon as the crypto market grew hackers started taking advantage of it since no government authority had any control over it. Many people are driven by the desire to earn more money which drives them to take unethical manners. But one good thing is that as soon as the hacker is identified the exchange platform takes drastic steps to find the hacker and try to ease out the problems 

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