{"id":3482,"date":"2021-09-20T17:36:03","date_gmt":"2021-09-20T17:36:03","guid":{"rendered":"https:\/\/icoholder.com\/blog\/?p=3482"},"modified":"2025-04-25T15:28:48","modified_gmt":"2025-04-25T15:28:48","slug":"cryptocurrency-market-security-risks-protect-your-assets","status":"publish","type":"post","link":"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/","title":{"rendered":"Cryptocurrency Market Security Risks: Protect Your Assets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/#Hacks_are_becoming_more_common\" >Hacks are becoming more common<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/#Is_the_exchange_the_problem\" >Is the exchange the problem?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/#Are_regulatory_measures_required\" >Are regulatory measures required?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/#What_other_threats_does_blockchain_technology_face\" >What other threats does blockchain technology face?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/#Are_cryptocurrencies_safe\" >Are cryptocurrencies safe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/#Final_thought_Store_cryptocurrencies_with_caution\" >Final thought: Store cryptocurrencies with caution<\/a><\/li><\/ul><\/nav><\/div>\n<p>If you are conversant with happenings in the cryptocurrency market, then you already know all about the fluctuations in digital currency. There have been swings in the value of Ripple, Bitcoin, and others over the years. While many things have happened, the crashes and big jumps have made it to the headlines more. However, these fluctuations also highlight the cryptocurrency market security risks, raising concerns for both investors and users.<\/p>\n<p>There have also been a lot of security breaches. For instance, some users who <a href=\"https:\/\/paybis.com\/buy-litecoin\/\"><b>buy litecoin<\/b><\/a> have reportedly lost their money, amongst other losses. With all of these happenings, many have been asking, \u201chow safe are cryptocurrencies in 2021?\u201d They also want to know the <b>most secure cryptocurrency<\/b> available. Read on to find the answers to these pressing questions. But first, let\u2019s discuss the problems.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Hacks_are_becoming_more_common\"><\/span>Hacks are becoming more common<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The digital currency market has witnessed more hacks in recent times. Examples of such include the DAO hack, Bitfinex hack, and the Mt. Gox hack. Also, earlier this year, Coincheck, a Japan-based cryptocurrency company, claimed cybercriminals hacked their system, ripping them off 500 million worth of NEM (that\u2019s about $400 million).<\/p>\n<p>With the <b>cryptocurrency market<\/b> getting more saturated every day, the hacking rate may also increase, thus bringing many to ask, &#8220;Should I <b>buy cryptocurrency<\/b>?&#8221;<\/p>\n<p>There are two main parts to the question. The first refers to cryptocurrencies. It raises questions such as \u201care these coins safe in themselves?\u201d \u201cDo they have a system that prevents hacks?\u201d The second part is the exchange. Unfortunately, most of these hacks happen at the exchange stage. So, the question then is<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_exchange_the_problem\"><\/span>Is the exchange the problem?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to reports by Robert Schwentker, a cryptocurrency expert and the president and co-founder of Blockchain University, he says that \u201cthe hack of Bitfinex exchange in Hong Kong, which resulted in approximately 120 000 bitcoins being stolen\u2014was not a hack of Bitcoin protocol itself\u201d. The same is true for the Mt. Goax hack.<\/p>\n<p>From all indications, something must have gone wrong during the exchange process. Either certain security protocols were neglected or exchange procedures were not followed, leading to loss of users&#8217; money. Given this, another question comes to mind:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_regulatory_measures_required\"><\/span>Are regulatory measures required?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With the number of hacks being witnessed, it\u2019s become important that certain regulatory oversight be put in place to see to <b>cryptocurrency<\/b> exchanges such as Kraken, <b>Bitcoin<\/b>, Coinbase, Coinmama, etc. Although these measures are not in place currently, only time will tell if they eventually will be.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_other_threats_does_blockchain_technology_face\"><\/span>What other threats does blockchain technology face?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-pm-slice=\"1 1 []\">While hacks may be one of the main and most common threats to <a href=\"https:\/\/icoholder.com\/blog\/worlds-richest-owners-of-bitcoin\/\">cryptocurrencies<\/a>, it isn\u2019t the only one. There are other threats blockchain technology faces. For instance, some scams deceive users into buying fake cryptocurrencies, only to part with their money and leave them with nothing. These types of activities contribute to cryptocurrency market security risks, making it crucial for users to stay vigilant.<\/p>\n<p data-pm-slice=\"1 1 []\">A simple hard drive crash can lead to the loss or theft of a user\u2019s bitcoin. Cryptocurrency is stored in digital wallets, which can be lost or stolen, just like physical wallets. Though these wallets are often stored in the cloud, cybercriminals can still access them.<\/p>\n<p>Even if you store your digital money on your hard drive, there\u2019s no guarantee of safety. If the hard drive crashes for any reason, your wallet may crash too.<\/p>\n<p>All of these still leads us to ask:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_cryptocurrencies_safe\"><\/span>Are cryptocurrencies safe?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bitcoins and other types of cryptocurrencies have a system to place to ensure their safety. First, there\u2019s a process in place that makes transactions irreversible. Also, all transactions are public, which means all transactions can be seen, making it difficult to cheat or hack the system.<\/p>\n<p>Besides, cryptocurrencies are decentralized. With this, if something goes wrong in one server, there are several other servers available to pick it up immediately; hence, hacking by cybercriminals is a waste of time.<\/p>\n<p>Despite all these measures, there&#8217;s no guarantee you won&#8217;t get hacked. But with bitcoin and other cryptocurrencies, users are more likely to suffer losses accrued from bad investments or scams that involve giving up their coins rather than hacks.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Final_thought_Store_cryptocurrencies_with_caution\"><\/span>Final thought: Store cryptocurrencies with caution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Seeing as these digital coins are subject to hacks, scams, and crashes, cryptocurrency owners are now engaging in the services of exchanges to keep their money safe. But as we have highlighted earlier, these exchanges aren\u2019t immune to hacks and other activities.<\/p>\n<p>Overall, cryptocurrency, just like physical cash, can get stolen or lost. Therefore, before you <b>invest in cryptocurrency<\/b>, ensure you consider all the options available to keep your money safe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are conversant with happenings in the cryptocurrency market, then you already know all about the fluctuations in digital currency. There have been swings &hellip; <\/p>\n","protected":false},"author":1,"featured_media":2378,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-3482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cryptocurrency Market Security Risks: Protect Your Assets<\/title>\n<meta name=\"description\" content=\"Cryptocurrency market security risks include hacks, scams, and vulnerabilities, making it essential to safeguard your assets - IcoHolder.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/icoholder.com\/blog\/cryptocurrency-market-security-risks-protect-your-assets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cryptocurrency Market Security Risks: Protect Your Assets\" \/>\n<meta property=\"og:description\" content=\"Cryptocurrency market security risks include hacks, scams, and vulnerabilities, making it essential to safeguard your assets - 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