Why do exchanges keep getting hacked?

[duncun007 3577]

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.

[Babubu609 0]

@duncun007 thanks for such a wonderful advice of course  when we apply your advice it will work perfectly. When we share some little percentage on different exchangers it will help us to minimize the number of loss we shall encountered at end if that exchange is hacked. 

[malik6314193 5449]

That is the thing which prevents the people to join crypto world. I think exchanges should tight their security. 

I am also victim of such exchange but it was not hacked by hackers. Owner if the exchange scam with their users. 

And i am agree with you that we should keep our money in hardware wallets. 

[rekter 8129]

Honestly i've seen more exit scams then hacks. But if you are afraid of hackers, and don't trust any cex, just be sure that your security is as state of the art as in the exchange's.

 

Leaving traces of your privatekeys in somewhere can lead your offline wallets being drained as well.

[Whited35 15285]

16 hours ago, rekter said:

Honestly i've seen more exit scams then hacks.

Bitter truth. I suspect even some staff from the reputed exchange should be involved behind the exchange hack. Previously, it was revealed in the case of Binance.I suspect but other competitor exchange may also flood money to buy some corrupted staffs to make attack. If a serious investigation is committed, I think everything will be revealed. 

[duncun007 3577]

On 9/26/2020 at 5:30 PM, Babubu609 said:

@duncun007 thanks for such a wonderful advice of course  when we apply your advice it will work perfectly. When we share some little percentage on different exchangers it will help us to minimize the number of loss we shall encountered at end if that exchange is hacked. 

yea that would be the smart thing to do, so if any exchange got hacked you will not be hung out dry.

On 9/26/2020 at 5:52 PM, malik6314193 said:

That is the thing which prevents the people to join crypto world. I think exchanges should tight their security. 

I am also victim of such exchange but it was not hacked by hackers. Owner if the exchange scam with their users. 

And i am agree with you that we should keep our money in hardware wallets. 

No matter what exchanges do and work hard on their security, some teenage hacker somewhere will find a bug in the system and people end up losing funds. thats what we have to live with in the age of centralised exchanges.

[Tunuu 2235]

Exchanges are getting hacked everyday because many of them they keep all the assets online and hackers can access anything online if they investigate it for a while. That is why you will never hear offline platforms like trezor or ledger nano wallet get hacked.

[duncun007 3577]

On 9/26/2020 at 6:25 PM, rekter said:

Honestly i've seen more exit scams then hacks. But if you are afraid of hackers, and don't trust any cex, just be sure that your security is as state of the art as in the exchange's.

 

Leaving traces of your privatekeys in somewhere can lead your offline wallets being drained as well.

I believe the cryptopia supposed hack is actually just an exit scam, but yea i agree there is no way we can maintain our security as long as we dont own the privatekeys.

[iloveyobit 6599]

These platforms contain billions of dollars of Bitcoin, and this makes them a very valuable catch for hackers who try to hack them daily and steal that money, the problem lies in the level of protection of the platforms bro.

[Raqeebzy 6456]

@duncun007 I agree exchanges shouldn't be regarded as wallets and shouldn't be treated as one but as much as I believe that, exchanges too has to do better with security generally. Apart from exit scams, all other exchange attacks has been about security system in compromised situation. 

There isn't anyway we can prevent putting funds on exchanges, is there?.

Edited September 29, 2020 by Raqeebzy

[duncun007 3577]

20 hours ago, iloveyobit said:

These platforms contain billions of dollars of Bitcoin, and this makes them a very valuable catch for hackers who try to hack them daily and steal that money, the problem lies in the level of protection of the platforms bro.

yea these billions is the reason why exchanges should do a better job and making these exchanges secured or else hackers will kill this crypto feild.

11 hours ago, Raqeebzy said:

@duncun007 I agree exchanges shouldn't be regarded as wallets and shouldn't be treated as one but as much as I believe that, exchanges too has to do better with security generally. Apart from exit scams, all other exchange attacks has been about security system in compromised situation. 

There isn't anyway we can prevent putting funds on exchanges, is there?.

the thing about exchanges security is like i said, hackers are always seem to be one step ahead of exchanges and their security system, DEX is our only way to go forward but sadly it has low liqiuidity.

[zhoutong 2188]

Most hacks were suspected to be an inside job. Even the Binance hack, Bitfinex, basically all exchange hacks had suspects inside the exchanges. Maybe the Mt.Gox was one that had so bad security that hackers were having a party and stolen so much in some years. I'm glad you talked about Bitcoinica too. This was very old exchange how you found about it, nobody knows anymore about that time.

[Hfaragon33 29]

The reason is internal problem, every time they said a hacker did, its the same personal involved.. bigs exchanges are totaly secure in the present time

[duncun007 3577]

On 9/30/2020 at 7:51 PM, zhoutong said:

Most hacks were suspected to be an inside job. Even the Binance hack, Bitfinex, basically all exchange hacks had suspects inside the exchanges. Maybe the Mt.Gox was one that had so bad security that hackers were having a party and stolen so much in some years. I'm glad you talked about Bitcoinica too. This was very old exchange how you found about it, nobody knows anymore about that time.

i highly doubt of it being an inside job because nobody will sabotage their own future, because at the time they were the biggest exchange, and I'm pretty sure they knew it wont just go away and they would have to pay back their customers no matter how long it takes. and yea bitcoinica is very old that most people on here havent even heard of it.

[Luiiis 31]

The biggest lesson that these "hacks" leave us is not to store our cryptocurrencies in exchanges.

[Naga 1250]

it boggles me why do exchanges never hire one of the white hat hackers and make them responsible for the exchanges security? because any preach in the security will end up costing them millions but the white hat hacker will know how to deal with it.

[LuisM 89]

I was the victim of some hackers to exchanges and for this reason there are people who do not enter the world of crypto currencies, I can not say more that the exchanges can have the highest security there will always be a group of hackers who penetrate that security.

[roman20025 42]

because there is no 100% safe site code or any software and with time various vulnerabilities are found

because this any exchange must refresh his own software with security updates to provide high level security of funds

[duncun007 3577]

5 hours ago, Naga said:

it boggles me why do exchanges never hire one of the white hat hackers and make them responsible for the exchanges security? because any preach in the security will end up costing them millions but the white hat hacker will know how to deal with it.

this is one of the main reasons why big companies spend a lot of money just on security nowadays, because hackers are always getting better no matter what system you have they can crack into it.

[mhmd 49]

• Stock exchanges are hacked every day because it is difficult to penetrate the currency system, but many of them keep all the assets online and hackers can access anything online if they investigate it for a while. It is preferable to use external wallets such as Trezor or Ledger Nano wallets that are not vulnerable to penetration.

[jfcrypto7 131]

I have experienced a hack, I invested in cryptopia and lost some of my funds, as the author says it's a wise decision to keep your money on different exchanges thus guaranteeing safety for some funds, but you will have to buy a cold wallet and keep it in a safe place if you don't want nothing to do with exchanges.

[Zouhair laasri 34]

First, we must know whether there is really penetration from the outside, or are there exploits that are exploited by the same teams responsible for their protection

[DanielMcRon 598]

This is how the most powerful systems in the world are hacked. As technology improves, so does hacking. The one who made the system is a smart person, but if the hacker is smarter and knows very well the loopholes of exchanges and systems, he will be able to find a bug in the system. Therefore, the system is developed by a huge team and which quickly reacts to such incidents

[duncun007 3577]

On 10/4/2020 at 5:47 PM, maliro2012 said:

Crypto exchange platform are like bank .

Keeping your money in a bank there is always risk

But the real advice is to store your earning in your personal wallet 

And trade with something you can afford to loose.

actually keeping your money in an exchange is worse than a bank because a bank actually is insured while crypto exchanges only insurance is their system and once its hacked they will suffer greatly and thats why most exchanges now use cold wallets.

[RS1979 31]

Its best to keep most of your Crypto assets on a hardware wallet, and only transfer to exchanges what you need for trading or buying other coins. It is very worrying how susceptible Crypto is to scams and hacking. This should improve over time hopefully.