PNN
New Delhi [India], December 5: In the ever-evolving landscape of cryptocurrency, blockchain security has emerged as a critical concern. Recent years have seen an alarming increase in security threats, including 51 per cent attacks, Sybil attacks, DDoS attacks, and vulnerabilities in smart contracts and protocols. Centralized exchanges, in particular, have been major targets, with over USD 20 billion reported as stolen in 2022 alone. This surge in cyber threats has led to significant losses in several major cryptocurrency exchanges, with user funds amounting to billions of dollars being compromised.
Addressing these challenges, CoinEx, a leading centralized cryptocurrency exchange, is at the forefront of implementing robust security measures to safeguard user assets. In their pursuit of enhancing blockchain security, CoinEx emphasizes the importance of designing robust encryption, incorporating trustless principles, preparing for potential attack scenarios, creating fault tolerance, and establishing effective governance.
The approach to blockchain security must be multi-dimensional. CoinEx, for instance, employs a hybrid wallet infrastructure, combining hot and cold wallets. This strategy ensures that while the majority of assets are securely stored in cold storage, a smaller portion is kept in hot wallets to facilitate immediate trading needs, thereby reducing the risk of hot wallet breaches.
Furthermore, CoinEx has recently announced a strategic partnership with SlowMist, a renowned cybersecurity firm. This alliance will enable SlowMist to extend its threat intelligence and forensic capabilities to reinforce CoinEx's security framework. The partnership focuses on crucial aspects like tracking money laundering, tracing stolen assets, and identifying emerging threats.
Adding to their security initiatives, CoinEx has launched the Shield Fund. This innovative fund, fueled by allocating 10 per cent of all trading fees, is dedicated to enhancing the protection of its users' assets.
While blockchain technology inherently offers a strong security foundation through its transparency, cryptography, and decentralization, challenges persist. The complexities in the interactions between protocols, platforms, and users can lead to security vulnerabilities. Therefore, ongoing vigilance and proactive security practices are critical.
How to Better Protect Your Crypto Assets
Enable Multi-Factor Authentication (2FA)
Activating two-factor authentication (2FA) provides an extra layer of account security on top of your password. With 2FA enabled, accessing your accounts requires both your password as well as a randomly generated one-time code from an authenticator app or SMS. This significantly decreases the risk of account takeovers, even if your password is compromised. Be sure to enable 2FA on any exchange accounts, wallets, or crypto services you use.
Use Strong, Unique Passwords
One of the simplest security steps is using strong, randomized passwords that are unique for each platform. Avoid reusing passwords across accounts. Strong passwords include a mix of uppercase and lowercase letters, numbers, and special symbols. You can use a password manager to generate and store secure passwords rather than creating them yourself.
Keep Private Keys and Recovery Phrases Safe
Never share private keys or recovery phrase seeds with anyone, as they grant full access to your funds. Store them offline as a physical paper copy in a secure place only you can access, or on an encrypted external storage device not connected to the internet. Memorizing the seed phrase can also keep keys accessible to you alone.
Use a Hardware Wallet for Cold Storage
For maximum security, store the bulk of your crypto holdings in a hardware wallet like Trezor or Ledger. Hardware wallets keep your private keys offline and only connect briefly for transactions. Even if your computer is hacked, your crypto remains protected from theft. The inconvenience of limited connectivity is outweighed by the strong security benefits.
Watch Out for Scams
As the crypto space grows, so do scam attempts promising false giveaways, high returns, or other tactics to lure you into relinquishing funds. Be wary of any offers that sound too good to be true. Only send crypto to others at your own discretion, and thoroughly vet any new projects before investing.
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