Many users have lost a large amount of their digital assets as hacking and phishing scams have grown increasingly common in the crypto space. In fact, recent statistics from Chainalysis state that scammers made off with a record $14 billion in cryptocurrencies in 2021. As the industry goes mainstream, these numbers are rising at an alarming rate.
Hackers have also cost networks an estimated $4 billion in losses in 2021. Vulcan Verse, AscendEX, BitMart, EasyFi network, Badger DAO, and C.R.E.A.M finance were some of the prominent platforms that have been victims of major hacks. These multi-million dollar hacks have occurred despite the best efforts to incorporate the highest security standards in DeFi. There seems to be a new hack every month as a result of smart contract bugs, draining millions of dollars in investors’ money.
Crypto Wallet Hacks Also on the Rise
Crypto hot wallets of exchanges have been a constant target for hackers. The most recent of them was the Crypto.com breach, in which the perpetrators allegedly made off with $15 million in Ethereum and other digital currency holdings. According to the firm’s CEO Kris Marszalek, over 400 accounts were hacked, draining millions of dollars from the exchange’s wallets.
Mt. Gox, a Japanese Bitcoin exchange, went bankrupt in 2014 due to a $460 million hack and internal corporate troubles. After the firm filed for bankruptcy, the hackers took 740,000 bitcoin from consumers, leaving customers waiting outside the premises for their money.
Another case includes BitMart exchange, which was hacked in December 2021 for around $196 million. The hack is unresolved to this day and is considered one of the most damaging crypto heists in recent history. Another very shocking hack involved KuCoin, where hackers stole more than $275 million in September 2020.
Cold Wallets: A Secure Alternative?
Storing cryptocurrency, like any important asset, necessitates a personal decision on how to best safeguard it while finding the perfect balance between utility and security. Using cold wallets like Ledger seems to be the best option to securely store crypto without anyone being able to access it. They provide utmost security by storing private keys offline.
However, these wallets often lack the usability that comes with holding crypto on hot wallets. Each time a user wants to move funds for any transactional purpose, they must connect the wallet to their device and access funds. This can be a hassle if funds are needed to be moved regularly but there are solutions emerging and Baanx is providing one of them.
Baanx, a UK based fintech building innovative solutions for industry leaders such as Tezos, Akoin and Reef has now created the CryptoLife Card powered by Ledger. Using Ledger Live, users will be able to securely and efficiently move their crypto between their wallets and their card for real-time use. This means that users who hold their crypto on cold wallets such as Ledger Nanos will no longer be limited to just holding their crypto and will be able to use the card just like any regular card to fund their purchases. With the CL card launching soon, such innovations might be exactly what users need to consider moving their digital assets to a more secure method of storage without having to compromise on the accessibility and usability of their assets.
Making Security and Usability Go Hand-in-Hand
While cold wallets can address the issue of security for holding cryptocurrencies, usability remains an issue. Despite the fact that large cold wallet issuers have launched solid and secure cold wallets, the usability element has proven difficult to address.
However, with fintechs like Baanx offering unique products like the CL card powered by Ledger, such issues can be tackled effectively. Usability issues with cold wallets can easily be addressed with innovative solutions such as this, leading to a more secure way of storing and using digital assets.
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