There have been several cryptocurrency exchanges who have been hacked. We've seen two major exchanges in South Korea get hacked this month alone with combined losses of over $70M. Such threats pose a grave concern to everyone who's part of this industry.
Korea is an important market that has contributed to the growth of this market. Two hacks in this month have caused significant dips in prices. Luckily today the market seems to be holding up just fine after BitThumb hack compared to the time CoinRail was hacked.
Nevertheless, it's a scary proposition where you wake up to find some or all of your funds missing. It's great that in some cases these exchanges offer to reimburse you but what if they were unable to?
Holding funds on exchanges even if it's only trading have their own perils as it would seem after these incidents. Having a cold wallet is a good way to reduce your risk exposure indeed. But sometimes we have to endure such a risk because we need to trade our funds on a daily basis. This leaves traders with no other option to hold their funds on the exchange of their choice.
At the moment it seems wise to use the best exchanges such as Binance and secure your account as best possible. But these hackers are smart and they seem to know their way around an exchange security so much that your 2FA security seems rather fragile.
BitThumb in this case is the world's 6th largest exchange by volume and considering the amount of business generated they must've employed high-grade security measures. But it's apparent that it's not enough to keep hackers away.
That brings me to the question. Have you ever lost any cryptocurrency in an exchange hacking incident? What did you lose and how did the exchanges compensate you for your loss thereafter? What are you doing differently now to prevent such an incident from happening to you again.
Look forward to hearing your experience in the comments below.
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