how to avoid scams in btc to naira trades

Cyberattacks have always been the archnemesis to technological security—since 1990, when the first browser was created, until this moment. That’s why most people advise staying away or limiting internet exposure.

But how do you avoid cyberattacks when your job basically lives on the internet?

This question brings us to a really alarming trend happening in the crypto industry: crypto hacking.

According to analysts at the cryptocurrency analytics company TRM Labs, cryptocurrency traders around the globe have lost a staggering $1.4 billion to hackers in just the first half of this year.

Visual graphics of crypto hacking via TrmLabs
Visual graphics of crypto hacking via TrmLabs

How bad is Crypto Hacking?

Let’s break this down a bit. From January to June 2024, the amount of money stolen by hackers more than doubled compared to the same period last year. To give you some perspective, in the first half of 2023, the value of stolen cryptocurrencies was around $657 million. So, the jump to $1.4 billion this year is a huge leap!

TRM Labs highlighted that, just like in 2023, a few major attacks were responsible for most of these losses. In fact, the top five hacks and exploits alone accounted for a whopping 70% of the total amount stolen so far this year.

Now, let’s talk about how these attacks are happening. Private key and seed phrase compromises are still a major issue in 2024. Alongside these, smart contract exploits and flash loan attacks are also common methods used by hackers.

The biggest attack to date this year hit the Japanese cryptocurrency exchange DMM Bitcoin. Hackers made off with over 4,500 BTC, which was worth over $300 million at the time. That’s mind-blowing!

DMM Bitcoin crypto hacking report on their mobile app
DMM Bitcoin crypto hacking report on their mobile app

Although the exact cause of this attack is still unknown, there are a couple of possible methods. One is stolen private keys, which we talked about earlier. Another is something called address poisoning.

Ever copy-pasted a wallet address and sent crypto without double checking? Be careful, you may just be the next victim on the list.

And it’s not just you.

Every single month in the first half of 2024 saw more money stolen than the corresponding months in 2023. The median hack was also 150% larger this year. Despite this increase, it’s worth noting that thefts from hacks and exploits are still a third below what we saw during the same period in 2022, which remains the record year for such activities.

Highest record of crypto hacking was in 2022
Highest record of crypto hacking was in 2022

How to protect against crypto hacking

No method is 100% secure or safe, but there are several methods you can take to secure your cryptocurrency keys:

  • Warm wallets (combining hot and cold wallet storage): The best way to secure your keys is to mix cold and hot wallets. For example, you could keep your private keys on a cold storage device when you don’t need to access them immediately. Once you decide to use them, you only transfer what you need to your hot wallet or exchange.

But there’s a slight caveat. Using multiple accounts and wallets can reduce your chance of becoming a target, but it increases the chances you might forget a password or lose your keys unless you are very thorough. Ensure you keep the access information where you can always remember it.

  • Storing with a Crypto Exchange: These platforms are typically accessible via a web browser or mobile app and allow you to acquire tokens and digital coins using either a fiat currency or a different cryptocurrency. Aside from being quite common among traders, it’s also the most convenient.

    That is, if you choose right.

How to choose the best crypto exchange

Choosing a secure crypto exchange is the most important decision a trader has to make. Whether you’re starting out in crypto or you’ve pulled a couple crypto weights over the years, everyone needs crypto security.

So if you’re making that choice, why not try Jackocoins? Asides protecting you from crypto hacking with built-in blockchain security, we also have a hot crypto wallet where you can sell your favourite coins at no extra cost! Simply sign up to get started.

So, my dear reader, crypto hacking is a worrying trend for sure, exposing the importance of security in the crypto space. As always, stay safe out there, and make sure to protect your assets with the best security practices available.

Till next time!

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