Crypto Currency

• Crypto currency is a decentralizeddigitalcurrency. It is stored usingblock chain technology and is not regulated by any bank, government, or financial institution.

• Decentralizationis one of the main features that sets crypto currency (often shortened to “crypto”) apart from other currencies. It can be created and issued by anyone, and as a result countless different crypto coins are available.

• The two most popular and widely recognized currencies are Bitcoin and Ethereum, stored on the Bitcoin and Ethereum block chains respectively.

• Crypto can, in theory, be used like any other currency to purchase goods and services.

• In recent years, however, many have started to treat new crypto currencies like speculative stocks. Crypto traders buy and hold large quantities of crypto, bettingthat its value will increase.

• If it does, they can sell it and make a profit. More often than not, these speculations end in disaster because coins can lose their value in a matter of minutes.

• While pump-and-dump scams and rugpulls are a constant threat to crypto investors, they’re not the only risks you have to worry about in this space. Even if the coin you’re holdingmaintains or gains value, you may still end up losingyour money because of a crypto hack.

A crypto hack involveshackers accessing and stealing your crypto coins without your authorization.Here are some of the most common crypto hacking techniques.

Bridge attacks

• Bridge attacks involvehackers targeting your crypto as it is transferred from one block chain to another.

• Each coin exists on a block chain (a decentralized database,usually referred to as a ledger). Protocols that transfer your currency from one block chain to another (for example, if you want to turn Bitcoin into Ethereum) are called cross-chain bridges. Bridges are essential for block chain interoperability,but they’re also vulnerableto hacking.

• Cybercriminalscan use any number of methods to target cross-chain bridges, from exploitingbugs in a bridge’s code to utilizingleaked cryptographic keys. Some hackers have even managed to trick crosschain bridge systems with bogus coins, converting them into real and valuablecurrencies on other block chains.

Wallet hacks

• Wallets are applications that allow you to access, manage, and move your crypto currency. These programs can be installed on a device like a smartphone or a computer and are either hot (always connected to the internet) or cold (offline). If you have a hot wallet on a device, then a bad actor who hacks that device could get into your crypto wallet and raid your funds.

Exchange hacks

• Many crypto enthusiasts use coin exchanges to store and manage their currency. Exchanges are online platforms through which you can buy and sell crypto, or store it and gain interest. While exchanges provide a useful service, they are not without risk. Exchanges hold huge amounts of crypto currency on behalf of their users, so hackers target them constantly, using exploits, phishing emails, and social engineering attacks. If a crypto currency exchange is breached, coins stored in the exchange’s hot wallets can be stolen.