Another cryptocurrency exchange hack, another month. It wasn’t a small one either. This one targeted Binance, the biggest cryptocurrency exchange in the world. By taking advantage of a cross-chain bridge’s flaw, the hacker was able to steal $570 million. Binance was forced to halt all deposits and withdrawals in order to re-secure the exchange.

Unfortunately, exchange hacking have become so widespread that billions of dollars are now lost every year. Many cryptocurrency users are unaware of how vulnerable their funds are to hackers if they leave them at the exchange after they have finished trading.

Is the cryptocurrency I store on exchanges secure?

The numerous security precautions you must take while logging into your crypto exchange may give you comfort. The issue is that these security measures are actually intended to protect your personal access to the exchange platform rather than the location where your deposits are maintained. Exchanges often maintain a pooled pool where all of their users’ cryptocurrency is kept. When you remove your deposits from the exchange, only then do they genuinely belong to you.

When you consider it, this structure poses a significant security concern. More deposits are held together and safeguarded with a single set of keys, making them a more alluring target for criminals.

Why spend effort breaking into numerous little wallets?

Because of this, hacks of cryptocurrency exchanges are happening more frequently.

And one of the issues with relying on your exchange’s custody alternatives is the possibility of losing your money due to an exchange-side hack. In times of panic, many users attempt to sell or withdraw their holdings as a result of the present era’s price volatility. For technical processing or liquidity concerns, if an exchange is unable to handle all of these requests, it may freeze everyone’s access to their funds.

When these panic attacks are very severe, exchanges can become bankrupt and shut down completely. Your money will likely be permanently lost if it is still on the exchange at the time that happens.

As a result, bitcoin exchange hacks are occurring more regularly.

The risk of losing your money as a result of an exchange-side hack is another problem with relying solely on your exchange’s custody options. Due to the current era’s price volatility, many users attempt to sell or withdraw their assets during moments of panic. If an exchange is unable to accommodate all of these demands due to technical processing limitations or liquidity issues, it may freeze everyone’s access to their funds.

Exchanges may become bankrupt and close entirely when these panic outbreaks are exceedingly strong. If your money is still on the exchange when that occurs, it will probably be gone forever.

They continue to be online, making hackers able to access the money they hold as well as the security keys needed to authorize transactions. Hackers are getting more and better at tricking people into giving them access to their wallets by employing malicious apps and phishing scams, as time goes on.

Hardware wallets: Without an internet connection, hackers are denied access.

However, there has always been a secure option to storing your cryptocurrency in a wallet of this flimsy nature. Hardware wallets, also referred to as cold storage, entail keeping the wallet and its keys on a device that is never permitted to connect to the internet.

Up until recently, casual cryptocurrency users did not like this considerably safer manner of holding cryptocurrency, mostly because it was a lot more difficult and unpleasant way to access and move money. These limitations, nevertheless, were never insurmountable. They were a result of hardware solutions whose designers weren’t quite able to create interfaces that provided a positive user experience without sacrificing security.

But as we approach the third generation of hardware wallets, it appears that ordinary cryptocurrency users will soon have a trustworthy security option that enables them to swiftly shift their money away from risky locations like exchanges and off the internet completely.

The iCoin Wallet is one of the hardware wallets from this new generation. It features a 13-megapixel camera, numerous processors, a 3-inch touchscreen, and 12 GB of memory. Additionally, the iCoin wallet may be purchased with a wireless small printer for added ease when it comes to offline storing of seed phrases and keys.

The iCoin wallet functions as follows: The user can build a new wallet on the device or restore an existing one after setting a security pin to have access to it. All transactions entered by users using their iCoin wallet are processed via secure Bluetooth or QR code scanning by the iCoin mobile app.

Users send their transactions to the network through the mobile app. The wallet containing the user’s funds never connects to the internet, not even for a brief moment, and your private keys never leave the wallet because the iCoin hardware wallet is a cold device.

Exchange-side hackers are not likely to disappear any time soon, therefore consumers must take extra security measures to protect their deposits. Thankfully, the most common cryptocurrency user now finds it much simpler to take these safeguards thanks to the new generation of hardware wallets.p.