According to a recent report by experts at Smart Betting Guide, cryptocurrency users suffered significant losses totaling $437 million in scams, rug pulls, and hacks during the first three months of 2024. This alarming figure underscores the ongoing vulnerability of the industry to security risks.
The report highlights the decentralized finance (DeFi) sector as particularly susceptible, with all reported incidents this year falling within this category. Ethereum, in particular, has emerged as the most targeted blockchain, experiencing a staggering 33 hacking incidents.
The study further delineates the prevalence of hacks across various blockchain networks, with Ethereum leading the list with 33 incidents, followed by BNB Chain with 14, Arbitrum with 6, and both Solana and Bitcoin reporting 2 incidents each.
In response to these vulnerabilities, Smart Betting Guide experts offer essential tips for crypto users to safeguard their assets. Key recommendations include avoiding cloud storage for critical information such as passwords and seed phrases, opting instead for physical security measures to prevent unauthorized access.
Furthermore, the report advocates for the use of hardware wallets as a more secure alternative to exchange-based storage, citing the downfall of FTX as a cautionary tale. Hardware wallets, or cold storage, are lauded for safeguarding private keys against online hackers and the potential failures of exchange platforms.
Emphasizing the importance of due diligence, the guide advises investors to thoroughly research cryptocurrency projects before investing, particularly to avoid falling victim to scams like “rug pulls.” Scrutinizing project developers’ credibility, whitepaper details, liquidity locking measures, and third-party audits are essential steps to confirm the authenticity and security of investments.
Additionally, users are warned against fake apps and exchanges, urged to rely on official sources for downloads, and to exercise skepticism towards applications with low download counts or dubious developer credentials.
Lastly, the report underscores the importance of general cybersecurity practices, including two-factor authentication, skepticism towards suspicious emails, and avoidance of dubious online offers. These measures not only protect cryptocurrency assets but also safeguard personal data from potential threats.
