Don’t think too much about what could’ve happened because you’d only be more upset. Instead, it would help to look at things rationally and take proper steps in this regard. First and foremost, it’s essential to understand that cryptocurrency, just like real money, is a target for thieves who would do everything in their power to take advantage of any vulnerability on the blockchain. So, unsurprisingly, many crypto exchanges are often hacked. If some sort of nefarious transaction has ruined your virtual goods, we can only be sorry, but learn this isn’t the end. You can still take some actions to save your remaining funds and reduce the chance of being compromised again. Read on for insightful information and practical tips in this uphill battle:
Can Crypto be Hacked?
Crypto can indeed be hacked, but this is the worst scenario. Generally, cryptocurrency transactions are highly safe and secure due to a digital ledger named blockchain. It’s based on a technology called cryptography that makes transactions nearly impossible to get hacked. But, just like any other technology out there, the blockchain has its vulnerabilities. And unfortunately, these weaknesses create opportunities for cybercriminals. Crypto usually gets compromised the moment some malicious actors gain access to users’ private keys – literally, the only thing that makes our investments safe and sound in an electronic wallet. Cybercriminals can also hack exchange accounts to steal digital properties if this is users’ option to store their crypto. This latter case can be avoided if there’s a strong key in place. Attackers use sophisticated techniques to take over a blockchain, so don’t assume that you could’ve prevented this if you had a robust password. They gain control of the so-called hash rate – the blockchain’s computational power – and then wait until a half percent of it becomes their possession. Once this happens, hackers proceed with the attack, often called a 51 percent attack. Therefore, any pending transaction the blockchain hasn’t yet checked becomes their target.
What to do Next?
Having your crypto lost is like someone stealing your car and parking it right in front of your home. This means that your digital assets are still there in plain sight but unattainable because you no longer have the related private key. We know it’s frustrating, but once this happened, there’s nothing you can do but:
1. Protect What’s Left
Some hackers may be merciful and not steal everything from your wallet. In this case, act immediately and transfer your remaining funds. It’d be advisable to delete the compromised wallet once and get another one if you’re still into it. Also, if you’ve stored your crypto on a particular exchange, consider changing any credentials related to that exchange account. In rare scenarios, hackers don’t compromise your account or wallet, but the device used to access them. If so, it’s wise to reformat it and, ideally, never use it again. Most importantly, avoid revealing any information on your wallet, even if you’ve never faced a threat of this type.
2. Contact the Exchange
You’ll likely get support if you’ve opted for a reputable exchange to store your valuable funds. But you should act as soon as you notice a change in your account. Larger exchanges rarely confront these types of attacks, but in the case of such an unfortunate event, they’d do anything possible to recover the stolen crypto on your behalf. If a transaction is still pending, there might be a chance for you to recover your assets. However, remember that some exchanges aren’t bound to help, as authorities don’t insure them, so you may have restored only a part of your stolen assets. Storing your crypto in a cold wallet is more advisable, especially regarding established and highly valued coins like Bitcoin and Ethereum. Bitcoin, in particular, can fall victim to ransomware, so if you’ve got some BTC coins in place, ensure you store them adequately, preferably in a hardware or paper wallet. In case you plan to invest in the most expensive currency in existence, we highly advise you to consider your storage option seriously, not to mention BTC coin price, market cap, liquidity level, and worldwide adoption. These factors will help you determine the worth of your investment.
3. Report the Attack
You may be skeptical about this, but learn that it can sometimes help to inform authorities about a crypto theft. You can be part of an insurance claim and have your property restored. When $4.4 million paid in Bitcoin was stolen in 2021, the FBI, helped by tracing specialists, managed to recover about $2.3 million of the amount mentioned above. However, that’d be possible only if you possess a substantial amount of Bitcoin.
4. Hire a Crypto Hunter
Crypto hunters are usually individuals or companies that seek hacked or lost digital assets on your behalf. They’re knowledgeable about malicious practices employed to compromise a crypto wallet or exchange and would do everything to restore your funds and get your lost private keys back. Crypto hunters typically work with law enforcement agencies and cryptocurrency holders to regain access to lost and inaccessible assets. To some extent, they use the same programs malevolent individuals use to hack you but do so with positive intention – they generate countless potential credentials with the help of sophisticated software until they come to the right one.
How to Minimize the chance of getting hacked again
Following are some steps that need to be taken care of so that you can minimize the chance of getting hacked again.
Store your crypto in a cold wallet.Beware of scams.Use a reputable exchange to purchase/sell.Consider MFA (Multi-factor Authentication).Change your credentials regularly.
What To Do if Your Crypto Wallet Gets Hacked
Wrapping Up
In the era of blockchain, where people are largely investing in Cryptocurrency. There is a high chance of malicious activity roaming around, and we need to be extra careful. In case your crypto wallet gets hacked due to any malware activity. You can easily set yourself free by the aforementioned given steps in a comprehensive manner. Comment down to give your feedback on the article and how it helped you to recover your crypto wallet.
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