As of late, cryptocurrencies have become very valuable. They now present a large incentive for hackers to gain access to and steal funds. Here we highlight the risks that users are exposed to on a day to day basis by using real world examples.

Blockchain technology is expanding so rapidly that it is difficult to keep up with all the new developments. The groundbreaking technology is moving through all the phases that any new advent does and of course still has a number of concerns that need to more comprehensively addressed. Undoubtedly the biggest challenge being faced is: a user-friendly way to store funds without compromising security by outsourcing your private key management. Security is and should continue to be a top priority for all users because of the significant risks. As we show below, here are 8 of the many examples where security measures have been exploited or have just failed outright, leading to unsuspecting cryptocurrency holders paying a hefty price.

Security is paramount. Considering the fact that the blockchain allows for you to be completely in control of your own funds and to access those funds with a private key that enables you to move funds instantly and without barriers. This means that, should your security (or the security of the custodian/s of your funds, such as an exchange) be compromised, all of your funds can be spent in an instant, with no way of recovering them. It is a constant balancing act that requires a consideration of; how secure do I want my cryptocurrency storage to be versus, how easy do I want to be able to gain access to my funds.

Hank Coetzee

Co-founder & Head of Operations at Octobase. In addition to advising all of his friends that trying to mine bitcoin with a laptop is not Eldorado, Hank comes from an entrepreneurial background with experience in deal structuring, buy-side finance, real estate and international trade. After having been persuaded by his father not to put his life savings into bitcoin in 2011, he’s been trying to recover from the trauma by building a blockchain company ever since.