What is left after the hacking of Cryptocurrency exchange

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Situation, examples for hacked trading
Consequence
Are there any solutions to protect the user?
a) The situation of Cryptocurrency exchange

The Cryptocurrency, headed by bitcoin, is considered to provide secure digitization for financial transactions but they are suspected. Concerns mainly focus on their exponential rise and the risk of a sharp fall in prices.

An equally risky situation comes from Cryptocurrency exchange where Cryptocurrency is traded and stored. These are the places where the buyers and sellers deal, and sometimes hold investors’ money, but they are becoming a magnet for fraudulent activities and are also a frequent occurrence. technical breakdown. Although the activity was not long, the history of the electronic Cryptocurrency exchange has many attacks and losses up to billions of dollar

• One of the most common Bitcoin exchange (located in Japan) in the period 2010–2014 is likely to be attacked and result in the loss of more than 850,000 Bitcoins. The user / investor can not do anything about it and they are subject to all losses without proper compensation.

• In January 2015, the well-known London-based Bitcoin Exchange seemed to have lost 19,000 Bitcoins, equivalent to $ 5 million at the time.

• In August 2016, a Hong Kong-based Cryptocurrency exchange reported that the hacker had removed a large amount of Bitcoin worth $ 77 million at the time. The problem is that this Cryptocurrency exchange forces their users to suffer the loss with them, while the security breach is entirely their fault.

• Recently, a Japanese electronic money exchange has been attacked with the loss of $ 523 million worth of “NEM” worth $ 534 million. This money was stolen by a few transactions from a hot wallet at 3 am, local time.

b) The consequence of the hacking of Cryptocurrency exchange

Large amounts of money are in danger of being overlooked as Cryptocurrency rise. As bitcoins and other Cryptocurrency soars this year, especially the dramatic four-fold increase in bitcoin prices, investors and speculators have come to online Cryptocurrency exchange. The amount of bitcoin and other Cryptocurrency worth billions of dollars is not protected by any government or central bank but is now traded every day.

Although it is not their fault, they are the ones who suffer Cryptocurrency exchange. The sad thing is that the they have trusted and used are not doing anything to protect their interests. The new Cryptocurrency exchange when launched promised high security, good security level, experienced development team , but there are still mistakes make the hacker easy to attack.

c) What does a Cryptocurrency exchange need to protect its users?

- To ensure the benefits for users of a today, it is necessary to have a strong technical team with enough experience to handle any unexpected attacks from hackers. Of course, this team needs to prove its ability through previous projects

- The second thing that needs to be is an insurance fund for all users in case something happens. Like the way insurance funds operate, the fund also needs to be secured by a third party.
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