Crypto security professionals have provided insights on how new users can protect their funds in the digital asset space. Despite the prevalence of hacks within the crypto industry, experts say there are ways for newcomers to avoid risky situations.
According to a market sizing report from Crypto.com, the number of crypto users reached approximately 580 million in December 2023, representing a 34% increase since January 2023.
To ensure the safety of their funds, Luciano Ciattaglia, the director of services at cybersecurity company Hacken, advises new users to steer clear of decentralized finance (DeFi) or decentralized exchanges (DEXs) when starting their crypto journey. Ciattaglia emphasizes the importance of choosing exchanges with a strong security track record and reliable custodian services.
Ronghui Gu, co-founder of CertiK, echoes these sentiments and suggests that new users opt for reputable exchanges and wallets to mitigate security concerns. Gu also emphasizes the need for users to educate themselves on crypto security principles, such as securing private key storage, using strong passwords, and enabling multifactor authentication.
Additionally, users should be cautious about sharing personal data online and be vigilant against phishing scams. CertiK’s report highlighted a total of 83 crypto phishing incidents in the first quarter of 2024, with Gu noting that the sophistication and success of these attacks have reached alarming levels.
Ciattaglia also emphasizes the importance of investing in projects that have undergone security audits, as audited projects with active bug bounties are less likely to be vulnerable to rug pulls. Hacken’s quarterly report revealed that 56% of hacked projects from January to March 2024 had not undergone security audits, indicating unresolved vulnerabilities for a significant portion of these companies.