Bitcoin Forum

Hello, I would like to know the opinion of all users of cryptocurrencies on a topic that has me very worried, after all the constant hacking that the exchanges suffer drastically affecting the price of bitcoin each time a hack happens, how would you solve this in a future so that the market and users are not affected?
Will any solution arise in the future?

I think even exchange also can give security features in the normal wallet but I do not know why they are not doing that at all bro. So far many scam attempt and hacking has been done upon news has been shared there.
Still there is no any website shared the transferred public address to anywhere as the reference too.

Even if you have a solution for it in the future, no one will be able to solve the problem. No matter how strong a system is installed, hacker will remedy how to hack it. Now, Blockchain was built on the internet and everything on the internet system can be hacked.

Exchange hacks have stopped significantly affecting the price long time ago, so currently if there is any effect, it lasts just a few hours or days, depending on the size. The recent sharp price drop was NOT caused by an exchange hack, this is just a coincidence.

Maybe in the future there will be some way to protect hot wallets on a protocol level, but today the good old netsecurity is the only way to protect exchanges from hackers. Also, decentralized exchanges won't have wallets if they will be 100% peer-to-peer, so there will be nothing to steal.

There already is a solution called cold wallet. Smart exchanges are keeping most of their money there and are employing people to watch and confirm withdrawal requests. Stupid exchange owners keep everything in hot wallets and cry when it all gets stolen.

It is very tough to save things over internet from being hacked. No matter how strong your security system is now or later the hackers will find the way to hack it so there is no assurance to it. Still I will request the exchanges to enhance their security system.  This can solve the problem to some extent at least.

We requested their security system defensively to avoid the theft of bitcoin in the exchanges. Although bitcoin is a decentralized digital currency exchanges so it's means as the system works with out any single administrator but we should alert and be knowledgeable about it,so there's nothing to do to steal at all.

most hacks are not hacks. they are exchange owners retirement schemes (run off with funds but blame a outside stranger they cannot name)

that said multisigs with time locks can prevent third parties from just taking the funds because it needs the users signature which an exchange wont store.

but ethical exchanges that dont have the retirement plan to run off with peoples funds can adopt the most basic of security. which is to not put private keys on the same server as thir website front end. thus if a hacker gets into an exchange server, there are no private keys to steal.

this can also be expanded where users register a public address where withdrawals have to go to, again preventing funds going anywhere else. all controlled off server where the front end exchange server just acts like an engine for trades and the off server acts as the deposit/withdrawal engine.

which can be managed in milliseconds to know who is a valid withdrawal requester or not. all by use of signature recognition

Sad to say, there will be no solution because hackers are always one step of the game. It will be a continues cat and mouse game here and the only way is for exchanges to hire security experts and have a monitoring team, sort of operations group 24 x 7 to monitor suspicious activity in the server side, just like a casino who has a "eye in the sky' to catch the thieves. But believe me, this hackers are really very good and intelligent and a simply loophole could be exploited. Some of them will find that loophole but wouldn't exploit it, but will wait for the perfect time to launch their attack. To summarized:

* hire a team to monitor 24 x 7. Get a competent group of people to do that job.
* patch software as often as they can because hackers usually attack this security loopholes
* learn from the past mistakes. try to have a knowledge based so that exchanges can't be hacked using the same exploit.

Everybody can be a genius in the digital world. Hackers are always trying hard to come out with superior technology and algorithms to get into people's vaults unauthorised. So far it's just blockchain technology that is prone to hacking attacks. The best thing you have to do is to tread cautiously and use a very good exchange while learning of ways to also keep your own crypto safe.

Yes that is right that cold wallet is a best solution, where you can put your bitcoin more secure, but i think that even exchanges will improve thier wallet to give it more security, which will then become too much difficult for the hackers to hack the people currency who are using it exchanges for converting it or for trading purposes.

this is a really simple question: Decentralized Exchanges!!!!
I advice you to take a look to NEX for example that will start with NEO then ETH and then BTC, LTC, ADA and major cryptocurrencies!!!

It would be better not to store bitcoins in exchanges itself.

Hackers are very troubling and it should be resolved quickly, and we must improve security to keep our assets or assets, for now we can use 2FA.

Using a decentralized exchange it doesn't mean you are safe from the hackers since they always looking for a new method to steal our money, have you heard about DNS attack well this one is the method that hackers is doing. There is no solution for this the only way is just improve the security of your account such a 2fa verification and always check the address before you input the details.

A workable solution for the future will be the presence or the use of stronger security codes for our account security to keep assets in storage.

I am totally agree with Franky, This is always the exchange insider jobs or their bad policies.
Whenever the exchange lost money did you ever heard that Blockchain got hacked? 
I believe in 99.99% case it is always insider job (or their own retirement scheme) that they just name as hack to outside world.

Well these hacks has happened so many times and the exchanges are like making it as an excuse when they go bankrupt. Really, hacks can happen. But we should choose the right exchanges to protect us. I hope most exchanges will guarantee security. This will build trust within the cryptoworld.

you got two things wrong.
1. the hacks don't "constantly" happen. for instance bitfinex was hacked once AFAIK and that was 2 years ago. there are tiny exchanges that get hacked that nobody even have heard their names, you can't call that "constantly"
2. the hacks on their own are not the reason for the effect on the price, it is the manipulation that comes after it. for example last year during the rally we had one exchange hack that did nothing and this month we had an exact similar hack on another exchange that affected the price!

regulate exchanges and prevent them from scamming people and call that a hack.
regulate exchanges and force them to provide some sort of insurance (funds, assets,...) that proves they can accommodate the user's funds in case of  a real hack.

Hacking is really a problem in a world of cryptocurrency and we really need regulations on the exchanges, who knows it might be an inside job between them so they can get money from their users. I know some exchanges are being regulated now and I hope it can lessen the risk of being hack. Well, it is still not guaranteed but I know in the future this market will be more secured.

Try use strong password or applied Two-factor authentication on your account or gmail to be able to secured your accounts in the exchanges i hope it will help this to avoid theft of your bitcoin.

Even if the solution solves the problem if the staff of certain exchange itself is having monkey business, people like us can do nothing if they are trying to manipulate the market. Then they will just fake the theft.
If some on you read about the recent news. There are several exchanges who was under investigation due to the involvement of price manipulation.

Don't put a fund in the exchange unless you going to use it. And always use a maximum security for your account. Keeping cryptocurrencies on an exchange is never recommended, you better to save it in your own wallet whereas you hold the private keys.

regulations solve nothing
if you actually read whats required to get the "regulation" stamp of aproval, very little is about the rgulated entity bing ethical. 99% of regulations is about authorities getting the business to create their own policy on how the business will police their customers.

think about it. the bank/mortgage industry is regulated. in 2007-2008 were they punished or were they rewarded. banks done some illegal, immoral and unethical crap but no one was jailed. instead banks pleadd poverty and got large sums of funding, wile also screwing people out of their houss so the banks could also keep all the mortgagepayments AND sell the house aswell.. triple win.


SEC does not police businesses. instead they just fine businesses that are not paying the SEC for policing its customers. EG if your licenced you can get away with crap. but if your not licenced but are ethical and dont steal from customers. you will get fined simply for not being licenced and not policing your customers.

we should not be demanding rgulation. as its MEANINGLESS
we should be asking for consumer protection oversight yes the 'insurance' part you requested (which is the 1% function regulation does have) that way consumers can have an agency that actually does police businesses.

Most professional exchanges now use cold wallets to store bitcoin, so most of the time you don't have to worry about the security of your token.
Because there's a zero chance of a cold purse being stolen.

the solution is, the exchanger should further improve the security of the system, and let no one force the intention of doing an intervention on the bitcoin system.

all i need is that some sort of force needs to be monitoring exchanges because they have proven that they will scam their customers no matter what they have been doing so far.
and regulations can also mean a more legitimate look to the exchanges that they do not possess right now which i believe is one of the reasons why many people stay away from them and bitcoin. with regulated exchanges we may see a lot more investors and adoption in general too.

It will be a rise of some Internet Security services for blockchains. And I think it will be a new business for these companies. McAfee, I remember he is an owner of a Internet Security so maybe he can have the service for these big coins. Some new Internet Security such as solve.care will also dominate the market and help coins be safer. Let's hope.

there are solutions that we can seek.
for starters as others mentioned more trustworthy exchanges that are under observation and can't scam you is a start. we need exchange owners to be known and can be prosecuted in case they scammed us.
but also these days we have the decentralized exchanges that you can't lose money to scams because of the way they work and the fact that you don't leave your money anywhere. everything happens right then and there. we just need them to grow more and become easier to use.

You shouldn't be worried about these hacks, they rarely happen. If these have an effect on the price of Bitcoin it'll only be a matter of time before it starts to recover and be back on the same price again.

Haviing a strong password together with 2fa is useless if the hacker works in the exchange.

Almost everyone knows that, but I think OP is more worried about the price going down everytime a hack occurs so he's seeking for solutions to avoid these type of incident.

I hope most of the exchanges will guarantee security. This will build confidence in the cryptoworld because this hacking has happened many times and exchanges like making it an excuse when they go bankrupt. Really, hacking can happen. But we must choose the right exchange to protect us

You should set up 2FA verification, to be effective in managing BTC, should not leave that important

I think this solution belongs to those who study blockchain. We do not have enough knowledge to go into it, and just put that belief.

Make sure you active the 2FA login verification to an exchange, and make sure only store your coins in the exchange who has 2FA verification.
If not, your wallet will be easily stolen by the hackers

The hackings are mostly caused by human error, the owners of the cryptocurrencies, specifically bitcoin itself, accidentally made his/her private credentials online to which these havkers will take advantage of and take all of his/her investments in the process. Another human error commonly done by investors is storing their cryptocurrencies in wallets that don't have 2FA verification. That's why they are easily hacked and stolen.

The best solution is to use Bitcoin in the way it was designed to be used.  Which doesn't involve handing your money over to an exchange at all.  That way, the only people who will get hacked are the speculators, who should simply factor that into their potential profit calculations, seeing as they're only gambling anyway.  

You can buy Bitcoin peer-to-peer.  That's what I did each time I've bought any crypto with fiat.  I handed a friend, or a known and reputable acquaintance, some fiat cash.  They sent me some BTC or whatever other coin I wanted to buy.  Simple.  I've only ever used exchanges for gambling small sums on altcoins.  Sums which I wouldn't be devastated to lose.  This limits the potential to get burnt.  If you do have to rely on an exchange for buying BTC, because you don't know anyone selling any, withdraw them immediately to a wallet you control as soon as the deal is done.

If you are holding significant amounts of bitcoins for either your savings or for spending on goods and services, there's literally no good reason to leave them on an exchange.  If you do leave them in the hands of a third party, you're effectively asking for someone to come along and take them.  You are the reason these hacks occur.  If you're a day-trader, too bad, risk comes with the territory and you should expect your luck to run out sooner or later.

Ultimately, if you leave it on an exchange, it's not really yours anyway.  It belongs to the exchange (or the hackers) and you are merely a creditor (with very few rights if anything goes wrong, I might add).  

If you don't have sole control over the private keys of your coins, you don't have any coins.  Rule #1.  Learn it.

There are a few things that should be considered here. First of all, most of the exchange hacks are not done by professional hackers. Most of them are inside jobs, although there are notable exceptions such as Mt Gox.

Hacks are rare but unfortunately there are some who don’t know how to keep secure their own wallets. Some don’t even realize that you shouldn’t leave their coins in exchanges because of how dangerous it is. It is highly possible for you to lose your coins if it’s just in the exchanges. It’s hard to solve this since there’s no enforceable body for exchanges. The best we can do is to protect ourselves and be secure.

I guess the solution lies within the crypto space only! I have came across one project called as REMME. I am not sure how significant it is but I have studied that this project is solely made for securing the exchangers and some other infrastructures too. They have the security based on blockchain based protocols where they create the unique certificate of SSL and TLS level and embed them into the blocks. This way it becomes inaccessible for the hackers as we know blockchain is impossible to crack in between. May be this extra layer of protection could be the answer for this all.

anything connected to the internet has the potential of getting hacked. Hot wallets of the centralized exchanges are the major targets of hackers. Exchanges are coming out with cold wallets, 2fa, multi-sig protocol, and so on to mitigate this issue. Also decentralized was born for a similar reason as you don't trust exchanges with you funds but your own wallet. Although these exchanges have their own cons too. So there's a lesson with every hack. And exchanges need to safeguard themselves.

Yes that is true  that cold wallet is a best solution. Where you can hold your bitcoin more secure. But I think that even exchanges will improve thier wallet to give it more security. I think it can not be hack by the hackers and  it will  become too much difficult for the hackers to hack. Everbody follow this soluation and keep their coin safe forever.

There are lots of reported exchange being hacked but it is not constant and some are really not a scam. It is just an inside job and makes it look like theyve been hacked. Cryptocurrency suffer from this affecting the price but it will always be a temporary fall but honestly we cant do anything to stop this hacking because every system has a vulnerabilities. What needs to be done is hire more professionals to find those vulnerabilities and update the system frequently.

i tell people hacking just don't happen to any cryptocurrency exchange most of the hacking are done by the owner of the exchange website or the host were they host the website those are the hackers, some of the cryptocurrency exchange website done even have security to protect their website.
To solve this mess they should first do Web Application Security Tester to fix Bugs in their website and app.
They should hire a cyber security expert to protect their website and app for them, sorry to say some of those cryptocurrency exchange dont spend like to spend money on securing their Business.

Any information on Internet is vulnerable to hacking and unfortunately these exchanges need Internet in order to function effectively. I think the exchanges should do regular update of their security. This will go a long way to prevent persistent hacking.