Why do exchanges keep getting hacked?

[Sykkuno 2887]

Both these exchange hacks look similar and many hacks I have read about are identical and all have to do with employees getting phised and allow access to private keys. The difference between kucoin and cryptopia hacks is that kucoin says that it will cover all the loss and not allow the customers to pay instead of cryptopia that will allow some customers to get some of their funds back.

[duncun007 3577]

18 hours ago, kryptonick said:

Not an easy question. I've read what happened to you and you are lucky that kucoin will not move the damage to the customers. I'd move all my money from exchanges unless what is required for trading. But for now I don't move the ethereum tokens and pay the miners. I prefer to sell these instead.

well I am a day trader, so if i moved all my money out of exchanges then ill be left with nothing to trade with, im glad that kucoin didnt end up scamming us like cryptopia did but in crypto there is always this risk when you trade in a centralized exchange.

[Jromz 2158]

Exchanges move a massive volume of capital every day, hence they are always going to be the main target of hackers, and for this reason, practically all exchanges are susceptible to be attacked. I have heard that even funds in DEX are not completely safe, as some dexterous hackers might be able to find bugs in contracts and take advantage of this. With this in mind, we should always only have in exchanges, thus funds that we can afford to lose.

Edited November 12, 2020 by Jromz
typo

[Jibon3 18]

Thank you for sharing a great part here that lets us know about cryptocurrency hacking.  Many members were unaware of this so they found out about it through your topic

[Umair976 10]

You are right we should keep our amount in private wallet. Because few wallets are scamm by scammers due to the poor quality of security. Owner of the exchanges should improve the security of wallet.

If security is very secure then automatically people's move on that exchange because people always worry about their money.  

[joemcgwa 3227]

Exchanges are mostly got hacked because they are not storing crypto through their exchange, but they are using cold wallets to store crypto, so when they transferring crypto from wallet to exchange or from exchange to cold wallet, there is where they having a chance to get hacked if the transaction is not yet confirmed.

[duncun007 3577]

15 hours ago, joemcgwa said:

Exchanges are mostly got hacked because they are not storing crypto through their exchange, but they are using cold wallets to store crypto, so when they transferring crypto from wallet to exchange or from exchange to cold wallet, there is where they having a chance to get hacked if the transaction is not yet confirmed.

yea the use of hot wallets is what makes it dangerous to keep the exchange safe, and this is why most exchanges now use cold wallet because they are not connected to the internet so it will be much safer to keep bitcoins away from hackers.

[Viscount 1357]

Well maybe because they are exchanges? I mean exchanges holds a lot of cryptocurrency and maybe that is the reason why they've been targeted by a lot of hackers and why they are being hacked frequently? Or are there any other reason than that?

[Husnyjaf 1784]

When most people talk about exchange and how it's been hack I wonder why people just go into anyhow websot to invest. Before doing anything regarding your mone you need to make a thorough research about that u want to go and invest on. Yobit is a simple exchange where you can invest your cryto with out having any worries.

[Junaid Gujjar 10]

At the end of the day, programmers love following trades since they are a fulfilling and regularly obvious objectives. In this regard, trades are minimal not quite the same as medical care suppliers with rewarding clinical information, or credit revealing agencies that hold Social Security numbers.

[Charakter 0]

More stock exchanges are over, how can one trust companies that their money is safe? 😐

[Mohsinrafiq169 210]

I think that the exchange hacked rate is very low beacuse there are tuff roles and regulations normal person connot b rist to hacked the exchanged.

[bitcoin-shark 1928]

hackers will always try to enter various exchanges as happened recently with the ddos attack on yobit, why do they sometimes succeed? because exchanges do not have adequate protection and security to current standards, I believe that all exchanges should invest more on safety

[Ramz99737 1196]

Because every day hackers become more experienced and knowledgeable about hacking matters, and I think it is difficult for any exchange to build a 100 percent effective protection system.

[huesca123 946]

the solution is simple. dont keep your coins in any exchange or on any online wallet. download a quality secure wallet to your computer.

 

you might want to keep a small part in a trading account or in an exchange, for whatever reason.

[DreamStage 2105]

Thank you for such information regarding hacked exchanges and their reasonings.

 

As from my personal experience and opinion i believe that most of those hacking attemps might actually be something to be scared of as they have in face happened on a security flaw level.

 

Or simply some of those are just sort of excuses for the exchanges to run away with investors funds and then profiting themselves.

 

We should always be attentive and on the alert of new exchanges and see if their reviews are something to be believed or not.

[scorpiali 5626]

Because it's money there and they don't pay more to secure her exchange, the majority of exchanges has hacked one time at least in his existing from binance to kucoin the last one in last month, all exchange need to secure and pay service for antivirus and a good team to secure 

[guatazoo 7150]

But I think hackers also having humanity to think, maybe they mostly hacking exchanges because exchanges are generating big profit. 

But they cannot hacking a wallets because wallets are not generate any profit more than keeping safe customers Cryptos. 

[Edwinvicky 819]

Some of these exchanges are being hacked by the script sellers or programmers while some hackers are the insider jobs i.e member of the team, may be from disagreement or just greed. Another hacking result may be due to neglect of some admins to tightening their exchange security. e.g adding 2fa to their database and every login from admin interface and also cold/hot wallet security is also important.

[Majd Raslan 5 549]

Because stock exchanges are the easiest places to steal, there are pirates who have modern technologies, and stock exchanges do not invest much in diet programs, so they have to update it every year.

[Joker645 80]

Thanks for this sort of exquisite recommendation of course  whilst we observe your advice it's going to paintings perfectly. When we share some little percentage on exceptional exchangers it'll help us to limit the quantity of loss we will encountered at cease if that trade is hacked

[Veronica Stones 141]

Scams are the worst part of crypto. It's very annoying doing all the work and someone from nowhere comes and take everything away in less than few seconds. 

[Onden 2098]

On 9/26/2020 at 5:30 PM, duncun007 said:

I have been a day trader since early 2017, and for anyone who has been in crypto long enough I'm sure we have all heard about those crypto hacks, from Mt.gox(850k bitcoins stolen)  to bitcoinica (43k bitcoins stolen) to bitfinex (120k). all those hacks have been happening in this crypto world for the start to this day, and it makes you wonder...how would we attract big money players to an investment in crypto if we keep getting hacked without a notice.

No matter how good of security an exchange have there is always a chance for it to be hacked and that's the problem with decentralized exchanges, whenever there is a presence of humans in any equation it will cause for a human error, and in exchanges that end up causing it lots of millions just like the binance hack(7000 bitcoins). From this issue we saw the starts of DEX but sadly there was no enough liquidity on those to attract enough people to use DEX.

To me, I think there is a high risk in keeping our money in exchanges and i learnt that the hard way having almost 70% of my money in cryptopia when it was hacked, and now I had close to 35% of my crypto in kucoin, although I don't think kucoin will end up like cryptopia. The lesson that everyone should learn is to always keep your money in different exchanges just in case one of them got hacked you dont lose all your money, and to be safer it would be better to send your crypto to a private wallet.

Yes, that's right, a lot of hacks on these exchanges are negative news about cryptocurrencies and exchanges, to avoid hacking on exchanges there are times when we store bitcoins in a private wallet, it's much safer.

[duncun007 3577]

On 11/16/2020 at 4:10 PM, guatazoo said:

But I think hackers also having humanity to think, maybe they mostly hacking exchanges because exchanges are generating big profit. 

But they cannot hacking a wallets because wallets are not generate any profit more than keeping safe customers Cryptos. 

hackers have made exchanges like cryptopia go out of business, there were thousands of people who lost their money there, i wouldn't say they have any humanity because they made many people go broke.

[magd 5231]

Not all platforms are vulnerable to hacking, but any platform at the beginning of its work and development may be vulnerable to hacking if a strong firewall is not activated with two-factor authentication for personal information, and hackers always search for vulnerabilities, so the platform is supposed to employ people who specialize in discovering vulnerabilities before the thieves discover them.