Crypto Security Experts Advocate Caution for New Users Amid Rising Hacks

Crypto Security Experts Advocate Caution for New Users Amid Rising Hacks

Experts Urge Caution

As the crypto industry continues to witness exponential growth, with on-chain data indicating a 34% increase in users from January 2023 to December 2023, security is a huge concern for newcomers. Accordingly, cybersecurity experts warn users to be cautious as they explore the crypto space, particularly decentralized finance (DeFi) and decentralized exchanges (DEXs).

Hacken’s Director of Services, Luciano Ciattaglia, emphasized the importance of newcomers avoiding the allure of DeFi and DEXs. Ciattaglia opined that they should opt for centralized exchanges’ wallets like most investors do when they are new to the crypto ecosystem.

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He also added that they should choose exchanges with established security track records. Thus, they can avoid unquestioningly entrusting their funds to untested platforms. Moreover, CertiK co-founder Ronghui Gu echoed similar sentiments as Ciattaglia.

Gu also recommended that new crypto investors should own hardware wallets for enhanced security. He explained that offline storage of private keys renders them less susceptible to hacking attempts.

Besides selecting secure platforms and wallets, Ciattaglia and Gu underscored the importance of self-education on fundamental crypto security principles. This includes safeguarding private key storage, employing robust passwords, and implementing multifactor authentication across all crypto-related accounts.

The experts also cautioned against sharing personal data online to prevent falling victim to phishing scams, which have surged to alarming levels, according to CertiK’s recent crypto market security report.

83 Reported Crypto Phishing Cases in Q1 2024

There were 83 crypto phishing incidents in Q1 2024, with a concerning escalation in sophistication and success rates. Hence, Gu emphasized the need for vigilance in identifying and thwarting phishing attempts, urging users to exercise caution when sharing sensitive information online.

Furthermore, Ciattaglia stressed the significance of investing in projects that undergo rigorous security audits, citing Hacken’s latest quarterly report. The report revealed that 56% of hacked projects from January to March 2024 had not undergone security audits and had unresolved vulnerabilities. Ciattaglia argued that security audits and bug bounty programs help mitigate the risk of rug pulls, thereby safeguarding investors’ interests.

BlackRock’s Bitcoin ETF Continues Inflow Streak

Meanwhile, data from London-based investment management firm Farside Investors revealed that BlackRock’s Bitcoin ETF, IBIT, attracted $31.6 million in net flows on Tuesday. This latest inflows indicate that it has maintained its streak of inflows for 71 consecutive days.

Notably, IBIT has achieved the same assets under management as the Gold ETF (GLD) but within a shorter timeframe. Earlier this month, IBIT joined notable peers such as the JPMorgan Equity Premium Income ETF after achieving 70 consecutive days of growth.

In contrast, Fidelity’s Bitcoin ETF experienced inflows of $4.4 million, falling behind its rivals after ending its streak of continuous daily inflows. Meanwhile, Ark’s ARB and Bitwise’s BITB recorded inflows of $33.3 million and $23.3 million, respectively. Conversely, Grayscale’s GBTC recorded outflows of nearly $67 million, signaling a change in investor sentiment.

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Rudy Harris
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Rudy Harris

Rudy Harris, a dynamo in crypto journalism, intricately unpacks the multifaceted world of digital assets. Renowned for his analytical depth and clear exposition, Rudy's articles serve as an essential compass for those navigating the intricate corridors of blockchain and cryptocurrency, solidifying his stature as a trusted expert.

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