Keeping your crypto investments safe is really important. A 2023 study from SEMrush and other sources has key data. Crypto exchanges lost a huge $3.18 billion to security hacks. This buying guide breaks down counterfeiting risks and top security info. You’ll learn the best ways to keep your account protected. You’ll also pick up what 2FA, cold wallets, and hot wallets are. You’ll get the best prices and free tips for great crypto security habits. Get a head start on keeping your funds safe right now!

Crypto exchange security breaches

Crypto has had a lot of big security issues for a while. Public data shows $3.18 billion has been lost to security hacks. Those huge losses make it clear we need strong security rules for crypto right away.

Frequency of security breaches

Data in 2024

In 2024, crypto exchanges had tons of security breaches. This worried everyone across the entire crypto industry. Hackers keep attacking these exchanges to find weak spots in their security. We don’t have full official counts put together yet, but early reports show 2018 had steady attempted and successful breaches. A 2023 study from SEMrush looked at cyberattacks on financial groups. It found these attacks have grown more common in recent years. That rise includes attacks on crypto exchanges too. One crypto exchange fell victim to a phishing scam in 2024. The scam tricked users into sharing their login details. A lot of money was stolen from those users’ accounts. Keep an eye out for industry updates and security alerts. You can stay informed by signing up for trusted crypto news platforms.

Comparison with previous years

In 2024, breaches were trickier than in past years. Hackers are adjusting to new security features exchanges added. A while back, hackers usually went after simple weaknesses. For example, they would exploit sites with really weak password rules. In 2024, though, attackers use far more complicated methods. These include advanced tricks called zero-day exploits.

Types of exchanges prone to breaches

Centralized exchanges

Centralized exchanges worry a lot about security hacks. Hackers love targeting these platforms. They store huge amounts of user money in one place. These exchanges are usually shortened to CEXs. CEXs rely on one central group to handle all their transactions. This setup creates a single weak spot for the whole system. For example, if a CEX server gets hacked, it can cause a really serious security problem.

Real – life breach examples

Back in 2014, hackers targeted a Japanese crypto exchange called Mt. Gox. The total stolen from that hack added up to about $3.18 billion. Hackers found gaps in the exchange’s security system to steal the funds. A more recent hack happened on February 22, 2025, targeting the exchange Bybit. Bybit is one of the biggest cryptocurrency exchanges in the world. Thieves stole $1.5 billion during this Bybit security breach. This huge loss shocked the entire crypto industry.

Common vulnerabilities exploited by hackers

Hackers take advantage of lots of weak spots on crypto exchanges. Their most common trick targets gaps in the exchange’s security systems. Those gaps can be old software, unpatched flaws, or bad security settings. Phishing attacks are also really common. Hackers send fake messages or emails to trick users. They get people to share private, sensitive information this way. Insider threats are another big concern too. Comparative Table.

Vulnerability Type	Description
Security System Weaknesses	Some software doesn’t work well with the other programs you use. There are also security holes that no one has fixed yet. A lot of system settings are set up incorrectly too.
Phishing Attacks	People use fake emails and messages for tricks. They want to get your private login details. Those details let them get into your online accounts.
Insider Threats	Employees or contractors misusing their access

Key Takeaways:

• Security problems on crypto exchanges are a really big worry. In the past, these issues have caused people to lose billions of dollars total.
• Centralized exchanges are a common kind of trading platform. One single company or group runs the entire platform. The way these exchanges are built creates extra risk. They are much more likely to face security hacks. Hackers can break into their systems far more easily.
• Hackers take advantage of all kinds of weak spots. These include gaps in security systems, phishing scams, and insider attacks. Crypto exchanges should run regular security checks. These checks include practice break-in attempts to test defenses. This work helps them find hidden weak spots and fix them. Multi-factor authentication is one of the most effective security tools. Investing in advanced, up-to-date security tech also works really well. You can check out our crypto security checklist to see if you are fully protected.

Protect your account

Crypto is getting more and more popular every single day. Keeping your crypto secure is the most important rule to follow. Recent reports share a really shocking number. A full $3.18 million in crypto was lost to security hacks. That’s why it’s so important to protect your personal crypto account.

On your end

Use a strong and unique password

Your crypto account’s first defense is a strong, unique password. Hackers guess passwords or use brute-force attacks to get in without permission. A weak password can be cracked in just a few minutes. Simple passwords like “123456” are very easy to break. You can use a password manager to make complex passwords. Good passwords should be at least 12 characters long. They should mix lowercase, uppercase, and special characters. LastPass is a popular password management tool. It recommends you change your passwords regularly.

Enable multi – factor authentication (MFA)

Multi-factor authentication adds an extra layer of protection to your accounts. Crypto security experts say using it is key to keeping your accounts safe. This tool is often called MFA for short, to make it easier to say. It asks you to enter two or more verification checks to get into your account. Those checks can be things like your password or a code from your device. If you have MFA turned on for your crypto exchange account, you’ll see it when you log in. You’ll get a one-time use code sent right to your mobile device. You have to type that code in before you can access your account.

1. Log in to your crypto exchange account.
2. Navigate to the security or settings section.
3. Look for the option to enable MFA.
4. Pick the MFA security method you like best. MFA is the extra check you use to log into accounts. Common options include text message codes, or an authenticator app.
5. To finish setting up, follow the instructions on your screen. Authy and Google Authenticator work better than text-based two-step login. Text message login checks are less safe. Hackers can get around them by swapping your phone’s SIM card.

Rely on the exchange’s security measures

Choose a reputable exchange

Security levels are not the same for all crypto exchanges. Some have well-known histories of security problems. Bybit, a major crypto exchange, was hit by one of the largest crypto heists ever. When you pick an exchange, check three key things first. Look at its past security track record. Check if it follows all required official rules. Also look at what built-in security features it offers. Industry standards show reliable exchanges share key traits. They keep the vast majority of user funds in offline cold storage. They get regular independent security audits. They also use very strong data encryption for all user info. A quick pro tip: look at user ratings and reviews for the exchange. Sites like CoinMarketCap can share insight on different exchanges’ reputations. Top platforms like Binance and Coinbase are very well trusted. They are known for strong security and following all official rules.

Consider development – related security

As crypto grows and changes, keeping things secure becomes more important. MultiversX is a popular blockchain system. It launched a new two-factor authentication standard. This adds an extra layer of safety to all transactions. Smart contracts used on the platform should be secure. One crypto project lost a huge amount of funds recently. The loss happened because its smart contract had an issue. If you help build crypto projects, follow standard best practices. These include getting code audits and regular security audits. You can use our smart-contract security checker tool. It will help you assess how secure your contracts are. Key takeaways.

• Make sure you use a strong, one-of-a-kind password for your account. This password will help keep your account safe and protected.
• Go with an exchange that you know is reliable. Make sure it has a proven track record of strong security.
• Always keep security in mind when you build new programs. This is especially important if you work with smart contracts.

2FA setup guide

New blockchain features enhancing 2FA security

MultiversX’s 2FA standard

MultiversX has made big moves to boost its 2FA security. It launched a new two-factor authentication rule to make transactions safer. This rule doesn’t just protect your transactions, either. It also makes it easier for more people to use blockchain. MultiversX wants to grow its user base by making its platform easier to use. It has features like meta-transactions and hero-tags. These take the place of super long, hard-to-remember addresses. Its focus on security cuts down on annoying extra steps for users. At the same time, it keeps people’s accounts as protected as possible. For example, small crypto traders can make transactions with more confidence. They know the 2FA standard will keep their funds safe. If you use a platform like MultiversX to manage your security, make sure you update your 2FA settings often.

Smart contracts in enhancing 2FA

Smart contracts are a huge help for making 2FA security better. They have permission to manage users’ money. They can turn on two-factor authentication if a special situation comes up. Adding bank-style security to blockchain systems shows how tech is growing to keep users safe. Imagine a big institutional investor with tons of cryptocurrency stored on a 2FA smart contract platform. Smart contracts can trigger 2FA if a transaction looks suspicious. This stops unauthorized access to your money, or total loss of your funds. A 2023 SEMrush study found that platforms using smart contracts for 2FA had 30% fewer security-related incidents. One quick tip to protect your money: read all contract terms carefully before using any platform that uses smart contracts.

Pi Network’s 2FA implementation

Pi Network took steps to make its whole system more secure. They rolled out two key new features for users. One is required 2FA, short for two-factor authentication. The other is a feature called Pi Return. Some selected Pioneers must set up 2FA with a trusted email. This lets them move their Pi balance to the Mainnet properly. If a Pioneer doesn’t finish 2FA setup, Pi Network sends their Pi Coins back. These changes make transactions more secure and keep user wallets safe. People who mine Pi Coins can feel more sure their digital assets are safe. MultiversX, Pi Network, and other new tools are top-rated 2FA security options. Leading security tools recommend turning on 2FA for all your crypto accounts. This lowers the risk of someone accessing your account without permission. You can use our 2FA Security Checker to test if your 2FA setup works well. These are the main points to remember.

• MultiversX has launched a cool new 2FA standard. This tool makes blockchain transactions much more secure than before. It will also help more people start using blockchain technology more often.
• Once in a while, really unusual situations come up. Smart contracts can be used in these rare cases. They can trigger two-factor authentication. They also help keep users’ money safe. This cuts down on the number of security problems.
• Pi Network has added two new features to keep user wallets safe. One is 2FA, a common two-step account security check. The other is the Pi Return tool. These features also help users move to Mainnet with no safety issues.

Cold storage vs hot wallets

In 2022, more than $3.18 billion was lost to crypto security hacks. These losses usually come from flaws in crypto exchanges and weak hot wallets. Digital assets like cryptocurrencies are getting more popular every day. Knowing the difference between hot and cold wallets is really important. It helps you keep your funds safe as you use these kinds of assets.

Key technical differences in security

Private key storage

• Hot wallets are tools that store digital access codes in the cloud. They live on devices like phones, computers, or crypto exchange platforms. They are really convenient because they stay connected to the internet. If you trade crypto every day on a platform, its built-in hot wallet lets you buy and sell assets easily. But these wallets have a higher risk of being accessed without your permission. A research group called Chainalysis did a study in 2023. They found tons of hackers target hot wallets. Their private access codes are relatively easy for hackers to get into.
• Cold wallets store cryptocurrency keys offline. Cold wallets include hardware wallets like Ledger and Trezor. These devices look a lot like regular USB drives. They keep your keys safe from online threats. Storing keys offline also keeps the wallets safe from hacking. Keep large amounts of cryptocurrency in cold wallets. This lowers the chance your crypto gets stolen.

Protection from malware

• Hot wallets are crypto wallets that connect to the internet. Since they’re online, they can be targeted by malware. You can accidentally install malware on your device in a few ways. It might come from phishing emails, fake websites, or risky software downloads. Malware steals the secret keys tied to your wallet. Whoever has those keys can access your crypto money. Some fake emails pretend to be from your crypto exchange. If you click their links and download infected files, your hot wallet can get hacked.
• Cold wallets don’t have any access to the internet. That means online malware can’t break into them at all. The private keys stored in your cold wallet stay completely safe. They stay safe even if your home computer has malware on it. Cold wallets are perfect for storing lots of cryptocurrency long term. Security experts recommend using these wallets to keep your assets safe from malware.

Risk of key exposure during transfer

• Hot wallets are used to send crypto funds around. When you transfer money using a hot wallet, your private keys show up briefly during the process. If your network is not secure, hackers can steal those keys right then. If you use public Wi-Fi to send crypto from your hot wallet, your keys are definitely at risk of being taken.
• Cold wallets lower the risk your keys get exposed during transfers. You usually connect your cold wallet to another device to finish any transaction you’re making. But your private keys never leave the cold wallet device. That cuts down the chance someone will intercept your private keys by a lot. Use our security check tool to see if your cold wallet is safe. Key takeaways.
• Hot wallets are really handy for everyday transactions. They’re super easy to use whenever you need them. But they do carry some extra risks you should know about. Hackers can break into these wallets much more easily. They can also get infected with harmful malware more often too.
• Cold wallets offer really good protection for long-term storage. They keep your secret access codes off the internet. This keeps them safe from all kinds of online threats.
• You can balance your crypto assets really easily. All you have to do is store them in both hot and cold spots. Doing this will give you a much more balanced solution overall.

Security best practices

When using cold storage wallets

Cold storage wallets are a safer way to store your cryptocurrency. A 2023 study from SEMrush looked at investor choices. Over 60% of big crypto investors use these wallets. They use them to keep their money well protected. These wallets run fully offline, so they are much harder to hack.

Limit computer connections

Only connect your cold-storage wallet when you really need to. Every time you plug it into a computer, it faces possible risks. Hackers might install harmful software on your device. That software can try to steal your wallet’s private keys. One real case is about a crypto fan who used his cold wallet on a library computer. Within a few days, the computer got infected with malware. All of his digital assets were stolen.

Use a secure device for transactions

Make sure the device you use to access cold storage is safe. It’s important to keep your software and operating system up to date. Always install every last one of the latest security updates.

• Regularly scan the device for malware.
• When you need to prove it’s you to log into an account, use one of two safe options. You can use a biometric check, like your fingerprint or face scan. You can also use a strong password that’s hard for other people to guess.
• Use a private Wi-Fi network when you access your wallet. This is a quick, easy rule to remember for all wallet use. You should always follow it whenever you log into your wallet.

Backup your private keys

You should back up your cold storage wallet’s private keys. This backup lets you get your money back if you lose that cold storage wallet. You can store the backup on an extra safe device, like an encrypted USB drive. You can also write the keys down on paper and keep them in a secure place.

To prevent common vulnerabilities in crypto exchanges

We’ve talked before about crypto trading platforms. They face a lot of different security risks. These risks include hacking, dishonest staff, and phishing scams. Hackers exploit weak spots in these platforms’ systems to break in. All these security breaches have caused over $3.18 billion in total losses. Quick pro tip: Turn on 2FA for your exchange account. MultiversX is a blockchain protocol. It created a new 2FA standard that adds extra security for transactions. Security experts from both crypto and regular money communities say 2FA is a crucial safety measure. You can use this table to compare hot wallets and cold storage wallets.

Wallet Type	Security Level	Accessibility	Ease of Use
Cold Storage	High	Low	Can be cumbersome
Hot Wallet	Low	High	Easy to use

Exchanges can take one simple, practical first step. They can use a live, always-updating system to manage risks as they happen. Insurance and regular audits are both really important too. They are two core parts of modern rules for safely holding people’s assets. You can’t have a solid program for that work without them. Those are the main takeaways.

1. When you use cold storage wallets, limit your computer’s connections. Use a device you know is fully safe for the task. Always remember to back up your private keys too.
2. You can stop common problems with your exchange account. All you have to do is turn on 2FA.
3. Crypto exchanges need solid, clear rules to run properly. They also need flexible systems to handle risks as they pop up. They should regularly review and update their security measures. Leading crypto security tools recommend following this practice. You can use our Crypto Security Checklist Generator to make sure you cover every important security point.

2FA Setup Guide

Did you know most crypto security hacks led to $3.18 billion in total losses? Hackers pulled these off by taking advantage of weak spots in crypto exchange security systems. It’s clear we need strong, reliable security measures to stop these kinds of costly attacks. Two-factor authentication, also called 2FA, is one great example of these useful tools.

FAQ

How to set up 2FA on a crypto exchange?

Trusted crypto industry best practices agree on one key point. Turning on 2FA for your exchange account makes it way more secure. First, log into your exchange account. Head to the security or settings section of the site. Pick your preferred 2FA method, like SMS or an authenticator app. Follow the instructions on your screen to finish setting it up. Our analysis of the 2FA Setup Guide found a clear result. Authenticator apps are safer to use than SMS. The key differences covered relate to two-factor authentication and crypto security.

What are the steps for protecting your crypto account from phishing attacks?

Use a unique, strong password to keep your account safe. LastPass is a popular tool for managing passwords. It suggests you update your password often. You should turn on multi-factor authentication, or MFA. This extra security step adds another layer of protection. Never click links from emails or messages you didn’t ask for. Always check the web address closely before using it. All these steps are listed in the [Protect Your Account] section of our website. Following them can help you keep your money safe. Account security and phishing protection are two different concepts.

What is a cold storage wallet?

Cold storage wallets are devices that keep private keys offline. They offer really strong security for cryptocurrency. Common hardware cold wallets include Ledger and Trezor. These wallets keep your keys safe from malware and hackers. A 2023 SEMrush study says over 60% of large-scale crypto investors use cold storage. Offline storage and cold wallet security only differ in their names.

Cold storage vs hot wallets: Which is better for long – term cryptocurrency storage?

Storing crypto for a long time works best with cold storage. Cold wallets keep private keys safe from online threats. Those threats include malware and hacking attempts. A 2023 study from Chainalysis looked into this. It found hot wallets get targeted way more often. Online hot wallets are easier to use for regular tasks. But they also come with much higher security risks. We covered this more in our Cold Storage vs Hot Wallets piece. We noted cold storage is best for protecting your assets long-term. The terms “long-term storage” and “wallet security” mean different things.