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Crypto Exchange Hack: Bitpoint

Updated: Jul 22, 2019

It´s like déjà vu every time I read about a new hack on cryptocurrency exchanges. Last week, a Japanese crypto exchange named Bitpoint was hacked as reported in different media. This Monday, the same exchange comes makes headline due to new information about other Bitpoint branches that also present a loss of money.

According to Japan Today, "Bitpoint Japan Co, an exchange operator for cryptocurrencies, said on Sunday that it found an additional value of 250 million yen ($ 2.3 million) in digital currencies stolen after losing about 3,000 million yen in a previous attack."

This new hack demonstrates once again, the vulnerabilities that exchanges have. In the last year, there have been numerous reports of hacking into exchanges with millionaire losses, among them the best known were Coincheck, Cryptopia, and Binance. However, when looking at how many have been breached in 2019, to my surprise, there has been more than I initially thought.

Do you know how many hacks exchanges have had so far in 2019?

There are eight hacks counting the Bitpoint this July

Why are cryptocurrency exchanges still being hacked?

Everywhere we hear that crypto is unhackable and thanks to its blockchain technology, there is no way to corrupt it. However, exchanges, are a fundamental pillar in the field of crypto, and thanks to them, people can trade and invest on a large scale. Unfortunately, they continue to suffer millionaire robberies. From Mt.Gox in 2011 to Bitpoint in 2019, years have passed, and the same problems remain with crypto exchanges. The crypto community recommends people not to keep assets stored in these entities.

"While a chain of blocks can be secure, exchanges that play a crucial role in increasing the number of cryptographic operations, allowing bitcoin and other similar currencies to become widespread, do not use the same technology,"

"Exchanges of Hauri Inc. in South Korea reportedly receive bad reviews for cybersecurity, and officials have said that those who do not increase these precautions will face fines."

"If security in the bags is not safe, your coins can be stolen,"

"If exchanges are to play their role as intermediaries, they should be as safe as banks and strengthen their security." - Businessinsider

Although exchanges do not work with blockchain technology, there are other ways of cybersecurity. The banking entities do not work with this technology. However, we don't always hear that they have been hacked. It is necessary to emphasize that the companies that are dedicated to providing the service of exchange of digital assets must comply with superior standards to ensure the money of their users.

The problem for traders:

The traders are dedicated to investing in Bitcoin and the various cryptocurrencies available in the market, known as Altcoins. To be able to make purchase and sale orders, they must do so through exchange houses. Sometimes it can happen that the currencies in which you have invested do not have all support in the same exchange house. This means that most have more than one account created in different entities. The above is usually a nightmare at the administrative level for those who invest in large quantities. Currently, no wallet supports all available cryptocurrencies, and this causes traders to have different virtual wallets; having to hold keys and varying amounts in each one. On the other hand, they would have to continually send money to the exchange to be able to buy or sell crypto. Undoubtedly a headache due to lost time and asset management.

Pandora Wallet, a solution for traders:

Pandora's Wallet is a multiple cryptocurrency wallet, which provides a new way to manage cryptocurrencies. Pandora's Wallet offers users the possibility of managing different virtual currencies. The software also allows users to buy and sell cryptocurrencies; all on the same platform. It will not be necessary to leave your digital coins in an exchange house or have to store them in different wallets.

DavinciJ15, came up with this idea of ​​a wallet when he faced the complications in trading. Thus the idea to create a solution to automate trades. At the beginning of 2019, the beta version of the wallet was released, and annual subscriptions are available online. Davinci Codes, the company that develops this wallet, is still in the process of making improvements to deliver a product according to the needs of the market.

The wallet has 50 cryptocurrencies, and the endless amount of coins that exist will continue to rise. At the moment, Pandora's Wallet is only connected to the well-known exchange; Bittrex. It is expected that in the short term, the wallet will connect with many more exchanges. Pandora's Wallet staff does not have access to private keys, funds, or exchange codes at any time; It only acts as an intermediary in the process. Trust is essential in the crypto world, which is why an open-source code is maintained for its clients.

If you want to know more about visit Pandora's Wallet website. You can also create a user and have access to 30 free days to test the platform.

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By: Carolina Pérez

Twitter: @carolinaninap

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