Crypto exchanges across Africa's biggest crypto markets have been forced to step up security in their systems due to persistent attacks from hackers which has resulted to huge losses globally. 2018 has been a deadly year for global exchanges as they have suffered scant losses of about $930m stolen from exchanges this year only, according to the data recorded by US cyber security firm Ciphertrace.
In the absence of regulations on Cryptocurrencies and exchanges, stolen money can crack down markets struggling to build confidence in their investors. This has awoken some crypto exchanges in Africa to strengthen security in the systems of their platforms to secure investor funds and also instill confidence in other potential investors. For the case of Africa, exchange security must be crucial because most people trading Cryptocurrencies do it with ignorance since most of them are promised quick riches.
Whom Should We Blame, The Trading Platforms Or Users?
Earlier this year in Nigeria and Ghana, investors fell victim of over $50m hack of their blockchain.info wallets where attackers gained access to individual wallets may be due to carelessness of users. Of course you can't blame the platform in this case, because it provides a user with all measures needed to secure wallets.
Another incidence took place in Zimbabwe this year, where hackers attacked a crypto exchange Golix by gaining access to user accounts on the platform. This forced the exchange platform to shutdown for some time. It is also said that hackers took advantage of email password vulnerabilities to facilitate transactions.
Sometimes when exchange breaches occur, it's not always the exchange to blame.
Storing Cryptocurrencies in a cold wallet is a better option to keep your wealth. Leave some on a hot wallet for either trading or conversions to escape huge losses that may occur when an exchange is hacked. In some countries like South Korea, exchanges are creating physical premises for their users to buy Cryptocurrencies and keep them in cold or offline wallets.
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