Cryptopia Hacked: Why it Matters for Every Investor
15 Gennaio 2019 - 07:55PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
January 15, 2019 -- ADVFN Crypto NewsWire -- The most popular New
Zealand based Crypto exchange, Cryptopia, was hacked today. With
that many of you are probably shaking your heads, but also saying
that such an event is nothing new and almost to be expected. The
fact is however, given certain facts, this is both true and not
true at the same time.
If you have read Satoshi’s original
Bitcoin white paper, then you know that the creation of
cryptocurrencies was not really supposed to result in an explosion
of third party services for trading them, though it did. The very
nature of a cryptocurrency is to free the user from the traditional
financial system by definition. At the same time however, because
of how the blockchain and crypto communities have developed, every
user has a choice with regards to this. He or she can always opt
back in to the traditional financial system, especially now, when
there appears to be little to no infrastructure to support claims
that cryptocurrencies can be used in the same way as everyday
money.
Another way of understanding this
might be to say that they are not really pegged to everyday things
like groceries. We are not yet able to walk into our local store
and see the price of apples or milk in Bitcoin.
With this opting back in comes a
heavy price in terms of security. If you truly own your crypto
holdings, then you keep them on a hardware wallet like a Trezor,
where no one else can reach them. If you use any sort of exchange
to trade crypto, even Binance and Coinbase, then you always risk
your account being hacked, resulting in your funds being lost
forever.
If there is anything to be learned
from the Cryptopia hack and the scores of others that came before
it, it is this. Keep the majority of your holdings in a place where
no one can reach them. Keep the rest for trading or spending. Make
sure the former group outweighs the latter in terms of how much of
a percentage of your portfolio it represents.
With this in mind, you will secure
yourself as much as you can against any sort of hack, short of
keeping everything you own off-line for good.
By: BGN Editorial Staff
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