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Cryptocurrency security is back in the spotlight. While the bull cycles in the crypto market attract a wave of new users, the temptation to let your guard down is strong, given the enthusiasm generated by centralized exchange platforms. Ian ROGERS, director of experience at Ledger, a global leader in hardware wallets, has warned of the dangers of managing funds through intermediaries. This warning takes on even greater significance following the scandals associated with centralized exchanges such as FTX.
Temptations of centralized exchanges during bull cycles
Ian ROGERS, director of user experience at Ledger, expressed in an interview his concern about the tendency of users to neglect the security of their assets during the growth phases of the market. For the others: “every bull cycle brings with it a seemingly rational reason to compromise security, equity, or both“. This abandonment of best practices often leads to cryptocurrency being stored on centralized exchange platforms where users mistakenly believe their funds are safe. ROGERS emphasizes the importance of self-restraint, stating that if one does not use this method, “why even care about cryptocurrencies?“.
These warnings have particular resonance after the collapse of the FTX exchange platform, where users lost millions of dollars.
Growing risks of cybercrime
In addition to the problem of centralized platforms, Ian ROGERS also draws attention to the evolution of cyber attacks in the digital economy. According to him, “every year we can say it was the worst for cybercrime and it will be true“. As the sophistication of attacks and the volume of assets at risk increase, so do the risks to users. He strongly recommends using hardware wallets like those offered by Ledger, as well as “clear signing” technologies that allow users to verify transactions before they are approved.
The importance of these security measures was highlighted in December 2023 when Ledger identified a critical flaw in certain decentralized applications based on the Ethereum Virtual Machine (EVM). Exploited by hackers, this vulnerability resulted in a loss of $600,000 to affected users. This incident clearly shows that even decentralized technologies are not safe from cyber attacks and highlights the need for investors to strengthen the security of their assets. In an environment where threats are constantly evolving, solutions such as hardware wallets and clear signature systems are simply essential to ensure funds are protected.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.