Why Do Some Crypto Platforms Get Hacked and Some Don't?

Since the very beginning of the cryptocurrency industry, the problem with hackers targeting both cryptocurrency users and cryptocurrency businesses has been ever-pervasive.

Because of the very nature of cryptocurrency itself, it is a highly attractive target for hackers being that it is significantly easier to launder hacked crypto funds than normal currencies.

But why is it that some cryptocurrency platforms are hacked and others aren’t, and what is it that differentiates the platforms that are able to protect the funds of their users from the ones that aren’t.

How Many Crypto Platforms Have Been Hacked Recently?

Throughout the past decade of the lifetime of cryptocurrency, there have been dozens and dozens of different platforms which have fallen afoul to hackers.

Some of the largest trading platforms within the cryptocurrency space have been hacked for huge amounts, including Binance being hacked in 2019 for $40 million, and even the largest cryptocurrency trading platform in history, Mt. Gox, being hacked in 2014 to the tune of $460 million.

More recently over the last 2 years, there have been more than a dozen high profile hacks including Binance and Coinbene.

What is the Difference Between Hacked and Non-Hacked Platforms?

While there have been a number of high profile hacks, and the problem has been widespread throughout the cryptocurrency space for the last 10 years, there are also a lot of platforms that have been in the industry for years and have never been hacked.

Therefore this begs the question, what is the difference between the platforms that do and don’t get hacked in the cryptocurrency industry.

The obvious answer to this question is that while all platforms try to implement security measures to protect the funds of the users, often the technological prowess of some trading platforms is no match for the skills of relentless hackers that are constantly developing new methods to penetrate the defenses of crypto trading platforms.

Which Crypto Platforms Have Never Been Hacked?

PrimeXBT

Of the two platforms in a list that have never been hacked, PrimeXBT is the first, and although the platform has been in the industry for a number of years, and during that time many of its peers have been hacked, PrimeXBT has remained secure throughout.

The main reason for this is that PrimeXBT implements a wide range of bank-grade security features throughout the platform including mandatory Bitcoin address whitelisting feature and the cold storage of digital assets with multi-signature technology.

While other platforms include some of these security measures, PrimeXBT has a unique security profile that uses an array of the most advanced technologies available today to protect the funds of users, and to defend the trading infrastructure that the platform uses.

Kraken

Kraken is one of the longest-standing cryptocurrency trading platforms that has never been hacked, and after being in the industry for more than 5 years, Kraken stands as an example of how trading platforms should implement the security features.

It is expected that this would be the case however, considering that both of Kraken’s founders come from a security background, and were both involved in analyzing the aftermath of the $460 million Mt. Gox hack and platform’s subsequent implosion.

Kraken increments a wide range of security features that have insured the funds of traders and investors on the platform have remained secure and have never been lost to hackers.

In Conclusion

Even after 10 years of cryptocurrency being in existence, the threat of hacks and breaches on trading platforms is ever-pervasive and it’s not showing any signs of slowing up in 2020.

It’s as important today as it ever has been for traders to remain vigilant and to be selective in the platforms they choose to trade with, in order to ensure that they don’t end up as part of another statistic of a large multi-million dollar hack on the crypto trading platform they use.

To learn more about two platforms that have never been hacked and implement robust security throughout their systems, check out PrimeXBT and Kraken.