Cryptocurrency platforms have become synonymous with mega heists in the past few years. For instance, Forbes reports that over $4billion in crypto was lost to internet scammers, hackers, and ordinary fraudsters last year.
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Holding virtual currency in any form puts you at risk of being hacked or defrauded through this new form of cybercrime. With these concerns, the question then becomes whether cryptocurrencies are safe, and if not, how should you approach your security using them? There are no verified cases of breaches that affect the blockchain- the technology on which crypto is built. In fact, major banking institutions and government agencies are earnestly implementing the technology on critical infrastructure. However, companies, trading websites, and individuals like you can still lose their virtual currency through other means, such as breaches and browser attacks.
Here are some of the risks you might have to deal with while dealing with cryptocurrency today:
Platform hacks and password leaks
The biggest losses in cryptocurrency don’t always come from your own mistakes; they often happen when crypto trading platforms get hacked or breached. For example, in 2025, the Dubai‑based exchange Bybit lost about $1.5 billion in one of the largest hacks ever, with attackers draining funds from its wallets by exploiting security weaknesses. This shows how even large exchanges can be vulnerable to sophisticated attacks.
Other exchanges have also been hit. Phemex lost around $85 million in a breach when hackers accessed its hot wallets early in 2025, and India’s CoinDCX saw about $44 million stolen during a cyberattack, prompting the company to offer a bounty to help track the stolen funds. Cryptopia became the 7th crypto trading platform to go under as a result of hackers gaining access to their platform and stealing users’ assets.
These incidents highlight a key risk in crypto: when you keep your coins on an online trading platform, you don’t control the private keys; the exchange does. That means if the exchange suffers a hack, an internal breach, or even an operational error, your crypto could be at risk without you having direct control over it. In contrast, the blockchain itself, the technology behind crypto, has not been broken, but the platforms built on top of it often become easier targets for hackers.
Because of this, security experts recommend that investors avoid storing large amounts of cryptocurrency on exchanges for long periods. Instead, many choose to keep their assets in wallets where they control the private keys, such as hardware wallets or other personal storage solutions, to reduce the chance of loss.
Cryptocurrency scams and online fraud
It’s hard to keep count of how many people have been tricked by cryptocurrency scams because the methods keep changing and becoming more convincing. Scammers often create fake trading platforms or pose as trusted advisors to lure victims with promises of high returns. For example, a man in India was recently cheated out of ₹64 (70,381 United States Dollar) lakh after scammers convinced him to invest in a bogus crypto platform that showed fake profits until he tried to withdraw his money. Another case involved a mobile shop owner who lost over ₹5 lakh (5,498 United States dollars) after a fraudster contacted him on WhatsApp and persuaded him to make multiple deposits into a fake trading site.
Scammers also use social media, messaging apps, and even AI deepfake technology (fake videos that look real) to make fraudulent investment opportunities seem legitimate, causing major losses across the world.
How to prevent crypto scams:
- Verify the platform before investing. Always use official websites or apps for exchanges and wallets, and avoid clicking links sent through messages or ads.
- Avoid promises of guaranteed returns. If it sounds too good to be true, it probably is.
- Do your own research (DYOR). Check reviews, smart contract audits, and community discussions before you invest.
- Never share private keys or recovery phrases. Legitimate services will never ask for them.
- Use hardware wallets and secure your accounts. Cold wallets keep your crypto offline and reduce risk.
- Report suspicious activity. If you suspect a scam, report it to authorities or cybercrime units.
Scams are widespread and constantly evolving, but if you stay cautious, verify everything carefully, and follow these prevention steps, you can protect your crypto investments from fraud.
Malware and viruses
Malware and viruses can run quietly in the background, monitoring your activity, stealing passwords, and even intercepting transactions before you confirm them. That’s why securing your device and wallet is just as important as securing the wallet itself, because once a hacker has your keys, your crypto can be gone in seconds.
Operating any virtual financial wallet like a cryptocurrency wallet makes you a prime target for hackers and malware because your private keys are the only thing protecting your money. If a virus, spyware, or scam tricks your device into giving up those keys, your wallet can be emptied instantly, and there’s usually no way to get the crypto back.
We’ve seen this happen in real life. In 2025, hackers stole about $1.4 billion worth of Ethereum from a major exchange when attackers were able to access wallet authorization keys, making it one of the biggest crypto heists ever recorded. Another real case involved a popular browser wallet extension being compromised over the 2025 holiday season, leading to about $7 million in crypto stolen from users who didn’t even realize their keys were at risk. Even individual wallet holders have reported unauthorized transfers traced back to exposed private keys, showing that no amount of care guarantees safety if your device is infected.
How to secure your cryptocurrencies
Change your internet habits. You can prevent 90% of hacks or breaches by changing your internet habits. This means using a VPN app at all times to encrypt your online traffic. Other measures include using a password manager, a secure email service, and avoiding unsecured websites and links. More importantly, double-check any emails you receive and avoid clicking on email links from unknown contacts.
Keep your private keys safe
You can make your cryptocurrency much safer by using multi-signature wallets or keeping your private keys offline. These methods simply add extra layers of protection so hackers can’t easily access your funds.A multi-signature (multi-sig) wallet works like a joint bank account that needs more than one signature to approve a transaction. Instead of just one password or key, it requires two or more approvals before money can be moved. So even if someone steals one key, they still can’t access your crypto without the others. This is especially helpful if you’re managing large amounts of cryptocurrency or sharing control with a business partner.
Keeping your private keys offline (also called cold storage) means storing them somewhere that isn’t connected to the internet. Since most hacks happen online, this greatly reduces your risk. Common offline storage options include:
- Hardware wallets like Ledger or Trezor
- An external drive stored in a secure place
- A written recovery phrase kept in a safe
Because these methods are not connected to the internet, hackers cannot reach them through malware, phishing, or exchange breaches. For the best protection, many people store most of their crypto offline and only keep a small amount in online wallets for everyday use. Also, always back up your recovery phrase and never share it with anyone.
Browse securely
Investing in a strong internet security package is one of the simplest ways to protect your cryptocurrency and personal data. Reliable antivirus and anti-malware programs such as Norton, Bitdefender, or Kaspersky can help detect viruses, ransomware, and spyware before they compromise your device or steal your private keys.Using a trusted VPN like NordVPN or ExpressVPN encrypts your internet connection, especially when using public Wi-Fi. This prevents hackers from intercepting your data. A password manager such as LastPass or 1Password helps you create and store strong, unique passwords for every crypto platform you use.
You should also enable two-factor authentication (2FA) through apps like Google Authenticator or Authy. This adds an extra verification step, so even if someone gets your password, they still can’t access your account without your second authentication code.
Secure browsing habits are just as important as the tools themselves. Always double-check website URLs, avoid suspicious email links, and download wallet apps only from official sources. Even one careless click can expose your login credentials or private keys.
Ultimately, your cryptocurrency security depends on both the tools you use and the habits you build. With the right protection in place and a cautious approach online, you can significantly reduce your risk and enjoy greater peace of mind in the digital world. Stay alert, stay informed, and keep your crypto secure at all times.
Conclusion
In conclusion, while the rise of cryptocurrency has opened the door to financial innovation and decentralized freedom, it has also created new opportunities for cybercriminals. Reports from organizations like Forbes highlight the staggering billions lost to crypto scams, exchange hacks, and online fraud each year, underscoring a critical truth: blockchain technology itself remains secure, but users and platforms are often the weakest link.Cryptocurrency security is no longer optional; it is essential. From platform breaches and phishing scams to malware attacks targeting private keys, today’s digital asset holders must take proactive steps to safeguard their investments. Avoid storing large amounts of crypto on exchanges, secure your private keys offline, enable multi-signature wallets, use strong password management tools, and browse with encrypted connections such as a trusted VPN. Small changes in your online habits can prevent the majority of common crypto-related cyber threats.
As adoption grows and more institutions integrate blockchain into critical systems, individual responsibility becomes even more important. The safety of your Bitcoin, Ethereum, and other digital assets ultimately depends on your awareness, cybersecurity practices, and choice of secure platforms. Cryptocurrency can be safe, but only when approached with vigilance, education, and the right digital security tools. Stay informed, stay cautious, and take control of your crypto security to protect your investments in this rapidly evolving digital economy.