Why do exchanges keep getting hacked?

[kevinprin 37]

In addition, we have encountered the added difficulty that there is not one. for pirated merchandise infringing copyright any copies ... are still exchange networks

[Ridam 7455]

On 9/26/2020 at 4:15 PM, duncun007 said:

 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.

 

@duncun007 Sad to say but you were wrong, Recently Kucoin got hacked and now I suggest you to keep your funds only in non-custodial wallet as exchange are getting hacked at any time. Though the kucoin recovered it's fund but it shows the risk of putting funds in exchange.

You can easily use Uniswap for swapping your tokens that's why I suggest you to use that and dex like Binance dex as they are far secured and also keep your long term hodl assest only in non-custodial wallet which provides private keys to you.

[RS1979 31]

I think the main problem is when exchanges keep funds in 'hot wallets' which are more susceptible to hacks. More and more of them are now using cold wallets or you can also use personal blockchain wallets which are safer to keep your funds in.

[Essaouira20 210]

Hackers find somehow a weak spot in the Exchange and hack it. Alot hackers are from North Korea the army gives order to hack Crypto Exchanges and add to the balance of North Korea. They are trained and very smart they already did several hacks in the history. Smart people always find a weak spot.

[duncun007 3577]

7 hours ago, Ridam said:

@duncun007 Sad to say but you were wrong, Recently Kucoin got hacked and now I suggest you to keep your funds only in non-custodial wallet as exchange are getting hacked at any time. Though the kucoin recovered it's fund but it shows the risk of putting funds in exchange.

You can easily use Uniswap for swapping your tokens that's why I suggest you to use that and dex like Binance dex as they are far secured and also keep your long term hodl assest only in non-custodial wallet which provides private keys to you.

yea I'm aware of the kucoin hack but yea its working good now and they allowed deposits and withdrawals, but here is the thing about DEX...as a day trader i need the coins to have liquidity and most dexes dont have that so yea even tho its secured but its still not profitable to trade there.

[viktor58123 43]

All exchanges can be hacked; there is no 100% protection, but it is worth choosing reliable exchanges that can compensate for the losses of users.

[MuhammadSh 3067]

Scammer and hackers are everywhere , but they focus on this cryptocurrencies world and try to steal money online easily without making anyone knowing their personally information! since the first exchange has launched , all the hackers' eyes are on these exchanges and waiting the right opportunity to hack them.. the security field is the most important thing for any exchange so we should really be aware before choosing the exchange which we want to use.. 

[RS1979 31]

I think the main problem is when exchanges keep funds in 'hot wallets' which are more susceptible to hacks. More and more of them are now using cold wallets or you can also use personal blockchain wallets which are safer to keep your funds in.

[godislovefll 1880]

On 26/9/2020 at 6:30, duncun007 said:

He sido un comerciante diario desde principios de 2017, y para cualquiera que haya estado en cripto el tiempo suficiente, estoy seguro de que todos hemos oído hablar de esos hacks de criptografía, desde Mt.gox (850k bitcoins robados) a bitcoinica (43k bitcoins robados) a bitfinex (120 k). todos esos hacks han estado ocurriendo en este mundo de las criptomonedas desde el principio hasta el día de hoy, y te hace preguntarte ... ¿cómo atraeríamos a jugadores con mucho dinero a una inversión en criptografía si seguimos siendo pirateados sin previo aviso?

No importa cuán buena sea la seguridad que tenga un intercambio, siempre existe la posibilidad de que sea pirateado y ese es el problema con los intercambios descentralizados, siempre que haya presencia de humanos en cualquier ecuación, causará un error humano, y en los intercambios ese final causando muchos millones al igual que el hack de Binance (7000 bitcoins). A partir de este número, vimos los inicios de DEX, pero lamentablemente no había suficiente liquidez para atraer a suficientes personas para usar DEX.

Para mí, creo que existe un alto riesgo en mantener nuestro dinero en intercambios y aprendí que de la manera difícil tener casi el 70% de mi dinero en criptopia cuando fue pirateado, y ahora tenía cerca del 35% de mi cripto en kucoin. , aunque no creo que kucoin termine como cryptopia. La lección que todos deben aprender es a mantener siempre su dinero en diferentes intercambios en caso de que uno de ellos sea pirateado, no perderá todo su dinero y, para estar más seguro, sería mejor enviar su criptografía a una billetera privada.

Kucoin is very careless with his platform, previously he has suffered from multiple attacks, in my opinion I would not invest my money there because they do not offer high security and this is dangerous.

[Ackireseyer 56]

There are many attacks that different Exchange users suffer with their digital currency by hackers, that is why every day the platforms increase their level of security to prevent these events from occurring.  Do not give information to strangers.

[duncun007 3577]

7 hours ago, RS1979 said:

I think the main problem is when exchanges keep funds in 'hot wallets' which are more susceptible to hacks. More and more of them are now using cold wallets or you can also use personal blockchain wallets which are safer to keep your funds in.

keeping funds in hot wallet is how you get to transfer your money out of the exchange easily, if all the money is in cold wallet it will take a while to transfer the money because cold wallets are not connected to the internet.

[tienda 8776]

Unfortunately this is the real risk when we use website exchange and keep our cryptocurrencies on their wallets, but with the time hackers develop their strategy to hack and website exchange owners invest a lot money their security to protect users coins, for this reason now we need to be attentive about website exchange, some of them are created by hackers!

[FIA17 44]

That is a great question but ultimately exchanges hold a lot of coins on their hot wallets and these coins are of course owned by the exchange and not by the users themselves. Hence it would be just like robbing a bank, banks hold lots of money in bills for their customers and it is no different with crypto exchanges. Hack the algorithms and get the coins out. Hence we are constantly reminded to not store large amounts directly on exchange hot wallets.

[RS1979 31]

Exchanges need to spend more time and money on security. They should use hot wallets less and cold wallets more, also better cybersecurity is required to stay ahead of the hackers.

[duncun007 3577]

15 hours ago, RS1979 said:

Exchanges need to spend more time and money on security. They should use hot wallets less and cold wallets more, also better cybersecurity is required to stay ahead of the hackers.

if it was that simple then no exchange would have been hacked, no exchange actually WANTS to get hacked and they actually do their best to keep the exchange secure, but hackers are always getting better at hacking security systems.

[Naga 1250]

On 10/2/2020 at 5:39 PM, duncun007 said:

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.

yea I agree because these exchanges get a lot of money from the trading fee, as well as the listing fees, so i doubt they will ruin their successful business like this and losing their reputation.

[memunis 79]

I think technologically the exchange platforms don't have adequate hacking prevention mechanism. So, they have been hacking continually. It is difficult to prevent hacking attacks to the end. More technical and technological preventions have to be carried out to stop hacking. It depends the technological capability of a platform.

[saeedbeeles 86]

I agree with you 100%. Your words are excellent, and I am doing this already. I do not put all my money into any investment platform. I just put 50% of my capital and the rest in the wallet.

[percare 3192]

It is important to select exchange that have a good clean history and not exchanges that have history of hacks and other events that make them not secure. We select exchanges that are renowned for their safety as Yobit and Coinbase. Binance was hacked too a year ago don't forget this, if they get hacked again for more maybe they will be an mtgox again.

[bogdanoff 3173]

I have read a lot about many exchange hacks and all were under suspicions of inside job or something that was looked like foul play. Every hack looked like an exit scam too and some maybe they are and we can't find a good answer. 

[yonkii 3205]

On 9/26/2020 at 1:30 PM, duncun007 said:

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.

Ouch! This can be very bad to happen to anyone. I have read about many hacks that happened in the crypto world and exchanges have suffered from them. I read about a Bitfinex hack lately, an Mtgox hack a Cryptopia hack, Binance hack, a new hack on Kucoin that you explain very well, a Bitgrail hack and so many more hacks. All these are make me very afraid to hold my coins on any exchange. We can lose all our money in one second. Maybe you are right and we need to hold our coins in wallets.

[annayks 2314]

Banks will adopt services to hold cryptocurrencies soon and they call them custodial services. But the problem is that they don't guarantee refunds in case of hacks or loss of funds. I don't know exactly how this will work but I expect many noob investors to lose all their bank invested crypto and hten call crypto a scam without even understanding how they work.

[cryptovlek 2597]

We have to be careful with exchanges we choose but what happens when even the best exchanges get hacked. Mtgox was used ones by 70% of the traders and it was hacked for 800,000 Bitcoin for many years and they only admited the hacks in 2014. Four years later and still some people expect to get only part of their deposits back. We can trust a few exchanges but if we want to invest it is recommended to withdraw to our wallets.

[kryptonick 2659]

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.

Edited October 9, 2020 by kryptonick

[Zouhair laasri 34]

Incomprehensible, we see every time a platform is being hacked. I did not understand what happens, is it that they are being hacked