Hackers penetrate secure authentication systems and interfere with Bitcoin exchange. In recent times, virtual currency has encountered several cyber thefts, which are making the business vulnerable. These hackers took around $350 million from the Bitcoin exchange in 2014. These were earlier rare occurrences but have now emerged as a part of everyday practice. Contemporary research indicates that the cryptocurrency trading platform is experiencing hacking activities almost every day.
It is the reason why various people have closed down their exchange in Bitcoin. The rising risk of cryptocurrency holders is because of the absence of depositor insurance for absorbing the losses. Although various trades work like virtual financial banks, it does not come as a guarantee. Hence, Bitcoin investors are left with little choice when it comes to Bitcoin exchange. They become compelled to work with an under-capitalized business, which sometimes lacks a capital buffer. These buffers are vital for absorbing losses and securing the investor from malpractices. However, the exchange world is slowly transforming.
Only knowing the tactics of trading in Bitcoin is not all. You must be aware of the fundamentals of cryptocurrency exchange so that you can protect yourself against malpractices. Security challenges for the cryptocurrency world have become a recent phenomenon. Experts believe that solving security breaches requires technical involvement. The financial mechanism of cryptocurrency needs to get secured from these activities by way of expert opinion.
Recent operations in cryptocurrency, as illustrated by Eric Dalius Bitcoin
Various studies by security personnel have been coming to the fore ever since 2009. Between 2009 till 2015, around 33% of Bitcoin exchanges got hacked. These figures are scary, undoubtedly. Hence, if you speculate about capitalizing on your hard-earned money in cryptocurrency, you cannot take your eyes off these figures.
Various non-profit organizations, as well as governmental agencies, are trying to control these mishaps. They are publicly disclosing data related to Bitcoin breaches to make people aware of the scenario. If you look at the Stock Exchange, you will see that security breaches over here are even higher. Recent survey Reports of forty-six security exchanges on the global setting have revealed that around half of the international agencies dealing in the cryptocurrency have experienced cyber-attack.
The way forward in 2021
The need of the hour is more collaborative research work into this field. Various universities and research institutions must collaborate to discover the best ways of curtailing this problem. Research papers are already there on security risks. Bitcoin exchanges across the world need proper security coverage so that the rate of hacking can get curtailed. Survey reports reveal that the closure rate for cryptocurrency exchange has reached 48%. Between 2009 till 2015, these figures have gone high. Bitcoin is profitable not only for big firms but also for small traders. Since it has the power of generating a vast volume of profit, Eric Dalius Bitcoinsuggests the exchange needs to come under regulating authority.
Breaches and closures get handled differently. Experts reveal that trading venues that act like financial banks will continue to remain vulnerable. Thus, they will serve as a custodial wallet by which they control the digital currencies of the user. Hence, the higher authorities have to take the responsibility of securing Bitcoin exchange by making effective attempts.