Why do you need strong crypto wallets?

The amount of investment in cryptocurrency is increasing day by day. Since this is a promising field, many people starting from youngsters are investing their hard earned money in the crypto world. But sad is the fact that we invest but never think about how safe our hard earned money is here. It is true that many people are currently profiting from investing here, so many people are investing their valuable money here with a dream in the hope of some profit. But have you ever thought about how safe your valuable money is that you are investing here? All these questions would not have arisen if incidents like hacks or scams had not happened in the crypto market. You may not be able to guess a little as the reason for writing about this topic. For example, a popular exchange Bybit was hacked yesterday.

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As a result of which they have hacked 1.4 billion dollars. Which is the biggest scandal in history. It is a really sad event though. Wherever their cold wallet is hacked. Most of the exchanges we invest in are centralized. Basically we keep accounts there with a specific password and keep them safe. But the reality is that you cannot consider your wallet secure until you have a specific key. Remember that protecting your digital assets is your own responsibility. This is what decentralization means. The wallets we basically use have no central authority behind them. This means that there is mostly no one to censor your transactions, but also, no one to recover your passwords or your private keys. And you are in charge of choosing a reliable crypto wallet.

Wallets come in many forms, but they can be broadly classified into two types: hot wallets (connected to the Internet) and cold wallets (offline). The second type is considered more secure. But the truth is that you need to connect anyway to manage your coins. However, the recent hacking of Bybit's cold wallet is a warning for us to ensure the security of our wallets. Hacks and scams have become commonplace in crypto, creating a crisis of legitimacy for an industry that many believe has been unfairly targeted for facilitating crime.

However, according to data from Chainanalysis, the incidence of legitimate use of crypto is growing much faster than illegal activity. Just think if Bybit's cold wallet can be hacked, then understand how much security our funds are. How can we make our wallets feel secure? So if bybit cold wallet hack is possible then it becomes important for us to keep a hardware wallet as a backup. As it happened with Bybit today, it may happen tomorrow with other popular exchanges like Binance so backups should be prepared in advance. So that we can keep our hard earned money safe.