Mistakes, Carelessness, Thefts: Avoiding Losses in the Web3 World. Real Hacking Stories and Ways to Ensure Security
With the immediate influence of an upcoming bullish trend and the Bitcoin halving in 2024, the impact of Web3 is becoming more noticeable, clearly reflecting on cryptocurrency price dynamics worldwide. A notable moment is the impressive rise of Bitcoin from 28,000 to 37,000, serving as a kind of indicator of increased user interest in the Web3 industry.
Coinmooner, your guide in the world of cryptocurrency news, has carefully gathered for you only the most current information, analysis, and cutting-edge security solutions since 2023 and is ready to prepare you for the upcoming 2024. We invite you not only to consider the importance of security in the context of cryptocurrency investments but also promise to delve into examples of unsafe cryptocurrency use, providing valuable advice on ensuring your security in the world of decentralization in 2023.
And what is Web3? It's the evolution of the internet aimed at creating a more decentralized and user-controlled online environment. Why is security important in Web3? Because in a world where users have more control over their data and finances, ensuring security becomes a cornerstone for successful interaction with this innovative environment.
In this article, we are delighted to not only provide you with valuable information but also offer reliable guidance in the field of cryptocurrency investments and security. Our goal is to give you useful knowledge and recommendations that will help you navigate the world of cryptocurrencies successfully, making your investment experience more informed and protected.
The Coinmooner team presents an overview of cryptocurrency threats covering events since the beginning of 2023. According to PeckShield's calculations, the total value of cryptocurrencies stolen by hackers has surpassed an astonishing $1.15 billion.
Concerning trends emerged in September of this year, with losses from 22 cryptocurrency project hacks reaching a record $355.91 million. For the first half of 2023, hackers successfully seized $457.78 million, and July marked the month with the most significant damage - $285.1 million, including the Multichain hack that resulted in a loss of $120 million. In August, cybercriminals stole $17 million in cryptocurrencies. Almost a third of the total losses for the year fell in September, with $200 million of that sum taken during the hack of the Mixin Network blockchain project.
CertiK's analysis reveals that in August alone, criminals stole approximately $45 million in cryptocurrencies. The overall losses from fraudulent schemes since the beginning of the year amounted to an impressive $997 million.
In August, exit scams brought hackers $26 million, and attacks using flash loans added $6.4 million. Other vulnerabilities in cryptocurrency projects allowed perpetrators to withdraw an additional $13.5 million. The largest exit scam involved the transfer and sale of PEPE meme coins by the development team, totaling $13.2 million. Projects like DeFi Exactly Protocol ($7.3 million) and Magnate Finance ($5.4 million) also fell victim to hacks.
Analysts from the CertiK cybersecurity platform summarized the activities of scammers and hackers in the cryptocurrency sphere since the beginning of the year. During this period, wrongdoers managed to steal $997 million in crypto, nearing the alarming billion-dollar mark. In August, the loss amounted to $45 million. Let's take a closer look at the statistics on losses for holders of digital assets.
Brazilian blogger Ivan Bianco faced a loss of $60,000 due to carelessness during a livestream. He accidentally revealed the seed phrases of his cryptocurrency wallet, triggering a unique hacker response.
Bianco, known for his blockchain and crypto content on YouTube, has over 34,000 subscribers and 2.2 million views since 2017. Attempting to prevent further losses, he tried to transfer his coins to another wallet, but it proved futile.
A viewer used the seed phrase, transferring coins from both of Bianco's addresses. Realizing the mistake, the blogger ended the livestream and shared details in the next one.
The damage exceeded $60,000, including several valuable NFT tokens. Fortunately, an anonymous caller on Discord facilitated the return of most stolen coins to Bianco, creating a remarkable episode in the cryptocurrency world.\
In today's world, securing your finances relies on the knowledge and lessons of those who have already lost their funds. Learning from others' mistakes is what sets an experienced user in the Web3 industry apart from a novice. Let's explore the options for storing your finances in a secure environment and discuss protection methods with appropriate strategies that will act as your shield against unauthorized interference in your investments.
SECURING CRYPTO: THE POWER OF COLD WALLETS
Cold wallets provide cryptocurrency owners with one of the most reliable methods to protect their assets from online threats and cyberattacks, according to Coinmooner. This method of storing crypto assets differs from hot wallets as they remain offline, making them less vulnerable to hacking attempts.
One of the main reasons investors prefer cold wallets is their high level of security. Since they are not connected to the network when not in use, hackers find it extremely difficult to gain access to the stored crypto assets. This creates an additional barrier to protect against cybercriminals.
Moreover, the use of cold wallets ensures the long-term preservation of cryptocurrency investments. Because they are not constantly connected to the internet, the risk of data loss or theft is minimized.
Many services worldwide offer this capability, including Ledger Nano X, Trezor Model T, and SafePal S1. These devices have become reliable allies for those who value the security of their crypto assets. Coinmooner recommends considering these technologically advanced solutions to ensure maximum protection for investments in the rapidly evolving world of blockchain and cryptocurrencies.
BOOST YOUR CRYPTO SECURITY: THE POWER OF TWO-FACTOR AUTHENTICATION
Two-Factor Authentication (2FA) is a crucial aspect of securing cryptocurrency assets, providing an extra layer of protection against fraud and hacking. It relies on a combination of knowledge (password) and possession (device for generating codes), creating an additional barrier for malicious actors, even if they have the password.
The benefits of 2FA in the context of cryptocurrencies are evident: it reduces the likelihood of unauthorized access, even in case of a password leak, and complicates wallet hacking attempts, making perpetrators less inclined to try.
At Coinmooner, we believe that implementing 2FA is a reliable extra shield for users, ensuring an additional level of security and confidence in the safety of their cryptocurrency investments.
SECURE YOUR WEB3 WEALTH: THE POWER OF PORTFOLIO DIVERSIFICATION
Portfolio diversification is not just a strategy; it's a powerful risk management tool in the world of Web3 and beyond. It involves spreading investments across various assets or asset classes to reduce the impact of losses from adverse changes in a specific asset.
In the context of Web3, where cryptocurrencies and decentralized finances (DeFi) play a pivotal role, portfolio diversification becomes especially crucial. A variety of assets, such as different cryptocurrencies, NFTs, stablecoins, and DeFi tokens, help mitigate potential losses arising from the volatility of this market.
Diversification also provides protection against specific risks, such as changes in government policies, technological failures, or legislative alterations. In the event of failure in one sector, successful investments in others can offset overall losses, and most importantly, it allows you to protect a significant portion of your finances in case one portfolio is exposed by malicious actors.
BULLETPROOFING WEB3: THE IMPACT OF REGULAR SOFTWARE UPDATES
Software updates are a crucial aspect of ensuring user security in the Web3 world. It's not just a routine procedure but a powerful means of preventing vulnerabilities, reducing risks, and safeguarding against potential breaches.
In the context of Web3, where cryptocurrencies, smart contracts, and decentralized applications play a significant role, regular software updates are a necessity. Developers consistently work on enhancing security, identifying, and addressing potential vulnerabilities. These updates encompass not only new features but also patches to close potential security loopholes.
Software updates are essential to combat emerging cyber threats, maintain compatibility with the latest technological requirements, and protect against known vulnerabilities. Irregular or absent application leaves users vulnerable to attacks, including the loss of cryptocurrency assets or the compromise of confidential data.
By strictly following security rules and employing reliable financial storage strategies, you ensure robust protection against unauthorized breaches and safeguard your investments in both the concluding months of 2023 and the upcoming dynamic year of 2024. In this period of intense decentralized industry growth, adherence to rules and the use of proven strategies from Coinmooner become pivotal elements, providing you not only with confidence in the safety of your assets but also covering you from potential risks in the ever-changing world of cryptocurrencies.
The events of the past year and even a more extended period vividly demonstrate how crucial it is to stay vigilant and stay informed. Regularly updating with current information is necessary for ensuring both personal and financial security. Keep in mind that in a world where changes are constant, being prepared for new challenges and opportunities that may arise is essential. Following these changes and staying informed is not just a security measure but also a key to successful navigation in the dynamic flow of events.
In this rapidly evolving world, where every moment matters, maintaining vigilance and striving for continuous knowledge enrichment is a true art. It not only allows adaptation to changes but also transforms them into opportunities for personal growth and financial well-being. As the Coinmooner team, we will always strive to provide you with the most up-to-date information from the world of blockchain innovations and beyond.