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Can hackers steal your Cryptocurrency ?

With the increased popularity around Crypto's, there are few concerns that worries every individual who has bought Bitcoin or Ethereum that ' is my crypto wallet safe from hackers ? '. We see every day in news that hackers stealing data from big companies, makes us worry about one thing, is blockchain safe from hackers ?. Because a lot of technology now a days are being hacked. So in this post I will discuss about whether your crypto can be hacked or not.

What makes Blockchain so secure ?

The Blockchain network of many cryptos are impossible to hack. Mainly because the technology behind these cryptos are constantly reviewed by the entire network. The blockchain network records and indexes each crypto transactions, like a bank ledger. However, the crypto blockchain is decentralised. This means that, instead of storing transaction data on a single server, the blockchain stores it across a distributed network of computers that monitors the network and verifying that the records are correct.

Important thing to notice here is, if a hacker, who wants to hack the distributed network or ledger of Bitcoin or any other cryptocurrency, he would need to hack not just one, but more than 50% of the network computers , famously known as 51% attack.

A 51% attack is quite impossible to achieve, but it is considered as a threat to blockchain network. It would look something like this : If a individual or entity to be able to take control of the blockchain network with higher mining power can possibly read the transaction history of the cryptos and he can change and overwrite it.

Why Cryptos get stolen ?

Most of the security discrepancies in the crypto world is due to users and exchanges not taking precautionary measures. Many people lose their funds because they store cryptocurrencies in places that are not secure or while exchanging crypto they send it to a wrong wallet address.

Third party apps keep traders updated on cryptocurrency prices. However, they have one potential security risk associated with them, data of users they collect can be used by hackers to access secret credentials of crypto wallet.

Hackers do create dummy websites and clickbait registration forms with built-in code that can steal a user’s information. This information can be stored anywhere and used for different purposes.

By posing as legit sites, like a mining site, crypto hackers get access to user data. They do this via legit looking mails so that they can direct users to these websites. These credentials can be used for illegal activities without the user consent.

Crypto hacking is increasing

Blockchain hacks have increased recently, as hackers found out some vulnerabilities in the blockchain network. As per a report, since 2017 hackers have stolen more than $2 billion in cryptos. These activities indicate that the blockchain network is no more hack-proof and users have to be cautious, especially while doing trade on crypto exchanges. 

Before making use of smart contracts or trading on any random exchange, be sure to research about security of that exchange. However, there is no need to panic because the blockchain is still very secure in design. Developers and admins are working relentlessly to perfect security measures to reduce future hacks.

Although crypto's like Bitcoin cannot be stolen, the same doesn't apply for the user’s crypto wallets. Hackers can steal cryptos by sneaking access to crypto wallets of users, so we need to safeguard our Bitcoins and lookout for potential fraudulent transactions. Users have to be careful when they share their personal and digital credentials on any third-party sites.

Still, the doubt arises in the mind of many people what if the crypto network goes down due to a hack. However, as discussed earlier, a hack in current situation is quite impossible. To avoid being the victim of any such hacks, we highly recommend you to safeguard your credentials. Store your wallet keys offline and use two-factor authentications while logging in to crypto exchanges.

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