Despite the prevalence of hacks within the crypto space, crypto security experts emphasize that newcomers can navigate the risks by taking certain precautions.
According to a market sizing report by Crypto.com on Jan. 22, the crypto space saw a surge to approximately 580 million users by December 2023, marking a 34% increase since January 2023.
With the influx of new users, Cointelegraph consulted security professionals to offer guidance on safeguarding funds in the digital asset realm.
Luciano Ciattaglia, the director of services at cybersecurity firm Hacken, advises novice digital asset users to steer clear of decentralized finance (DeFi) or decentralized exchanges (DEXs) initially.
Ciattaglia suggests, “Don’t rush into DeFi or DEXs straight away.
Most people use centralized exchanges or wallets for all their crypto investments, and that’s fine.”
He further stresses the importance of choosing exchanges with a solid security track record.
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Similarly, CertiK co-founder Ronghui Gu recommends that concerned new users opt for reputable exchanges and wallets, and even consider investing in hardware wallets for heightened security.
Gu underscores the significance of educating oneself on crypto security fundamentals, such as securing private key storage and employing strong passwords, along with enabling multifactor authentication.
Gu also warns against sharing personal data online and falling victim to phishing scams, citing CertiK’s report, which documented 83 crypto phishing incidents in Q1 of 2024, noting an alarming increase in sophistication and success rates.
Ciattaglia underscores the necessity for new users to invest in projects that undergo security audits and maintain active bug bounties, as audited projects with such measures are less susceptible to rug pulls.
Hacken’s quarterly report revealed that 56% of hacked projects between January and March 2024 lacked security audits, leaving vulnerabilities unresolved for a significant portion of these companies.
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