Bybit Loses $1,5B in Hack: 7 Strategies to Protect Your Crypto Assets

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The recent hack of Bybit, which resulted in a loss of $1,5 billion, underscores the critical importance of rigorous security measures in the cryptocurrency market. This historic incident serves as a wake-up call for all investors. In this post, we share practical strategies to mitigate risks and avoid catastrophic losses.

 

1. Choose Exchanges with Proven Security


- Lesson from the Hack: Centralized exchanges are frequent targets. 


- Action: Prioritize platforms with strong security track records, such as those using cold storage (offline storage) for most funds, security certifications (ISO 27001), and anti-fraud systems. 


- Examples: Binance, Coinbase, and Kraken invest heavily in security, but always research recent updates. 

 

2. Don’t Keep All Assets on Exchanges 


- Lesson from the Hack: Bybit lost user funds due to vulnerabilities. 


- Action: Use exchanges only for active trading. For long-term holdings, transfer crypto to self-custody wallets (hardware wallets like Ledger or Trezor) or non-custodial software wallets (MetaMask, Trust Wallet). 

 

3. Enable Two-Factor Authentication (2FA) 


- Lesson from the Hack: Many hacks start with human errors, like weak passwords. 


- Action: Always enable 2FA (Google Authenticator or Authy) on all accounts. Avoid SMS-based 2FA, which can be intercepted. 

 

4. Diversify Across Platforms and Wallets


- Lesson from the Hack: Concentrating funds on a single exchange is risky. 


- Action: Spread your assets across **multiple exchanges and wallets. If one platform is compromised, your losses will be limited. 

 


5. Monitor Security News and Alerts 


- Lesson from the Hack: Hackers exploit technical or human vulnerabilities. 


- Action: 

       I-Subscribe to security alerts (e.g., CipherTrace or SlowMist). 

       II- Follow official updates from the exchanges you use. 

       III- Watch for suspicious emails (phishing) pretending to be support teams. 

 


6. Use Exchanges with Insurance Funds


- Lesson from the Hack: It’s unclear if Bybit users will be reimbursed. 


- Action: Opt for platforms that offer hack insurance, such as Coinbase ($255 million insured) or Gemini. 

 


7. Learn About DeFi and Decentralized Custody 


- Lesson from the Hack: Centralized exchanges are single points of failure. 


- Action: Explore decentralized alternatives (DEXs) like Uniswap or PancakeSwap, where you control your private keys. 

 


Conclusion:  

The Bybit hack is a reminder that security should come before profitability in the crypto world. By adopting practices like hardware wallets, 2FA, and diversification, you’ll drastically reduce risks. Stay informed and never underestimate the importance of protecting your digital assets. 

 



Location: Nova Iorque, NY, EUA

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