Introduction

Hacking attacks in the crypto world are on the rise, with billions of dollars stolen due to exchange breaches, phishing attacks, and vulnerabilities in digital wallets. The $1.5 billion Ethereum hack on Bybit in early 2025 has once again raised concerns about the security of digital assets.

This incident caused Bitcoin prices to drop by 4.70% and Ethereum to plummet by 8.07%.

With increasingly sophisticated cybercrime methods, protecting your crypto assets is more important than ever. Here are five key steps to secure your investments in 2025.

1. Store Your Crypto in a Hardware Wallet

  • Centralized crypto exchanges (CEX) can be hacked, resulting in loss of funds, as seen with FTX, Mt. Gox, and Bybit.

  • Solution: Use hardware wallets (Ledger, Trezor) to store crypto instead of leaving it on exchanges.

  • Why? Hardware wallets store assets offline, making them immune to cyber attacks.

Best Practices:

  • Always buy hardware wallets from official sources to avoid manipulated devices.

  • Never share your private key or seed phrase with anyone.

  • Use fireproof and waterproof backups to securely store your recovery phrase.

2. Enable Two-Factor Authentication (2FA) on All Accounts

  • Many hacks occur due to weak passwords and lack of additional security layers.

  • Solution: Enable Google Authenticator (GA) or Authy as 2FA for exchange accounts, digital wallets, and DeFi platforms.

Things to Avoid:

  • Do not use SMS-based 2FA, as SIM-swap attacks are common.

  • Avoid storing backup codes in cloud storage, as it is vulnerable to hacking.

  • For maximum protection, use a YubiKey or other hardware-based 2FA devices.

3. Be Aware of Phishing Attacks and Fake Sites

Hackers often impersonate crypto exchanges, digital wallets, and DeFi protocols to steal user credentials.

Solution:

  • Always double-check the website URL before entering login credentials.

  • Use browser extensions like MetaMask Phishing Detector to block scam sites.

  • Verify official customer service accounts on X (Twitter) or Telegram before clicking any links.

Common Phishing Tactics:

  • Fake Binance or Coinbase login pages asking for user credentials.

  • Emails claiming 'urgent security updates' with malicious links.

  • Fake airdrops or giveaways asking for connections to digital wallets.

4. Avoid Storing Too Much Crypto on Exchanges

Crypto exchanges are prime targets for hackers because they hold large amounts of funds.

Solution:

Only keep the amount you use for trading on exchanges and move the rest to a more secure wallet.

Notable Crypto Exchange Hacking Cases:

  • Mt. Gox (2014): $460 million lost

  • Binance (2019): $40 million stolen

  • FTX Collapse (2022): $8 billion locked

  • Bybit Hack (2025): $1.5 billion stolen

If you must use a centralized exchange, choose one that has high security measures and withdrawal protection.

5. Update Wallets, Security Settings, and Revoke Unused Access

Many traders do not update their software and security settings, making them vulnerable to exploitation.

Solution:

  • Ensure wallets, exchange accounts, and mobile apps are always updated with the latest security patches.

  • Review and revoke access to DeFi applications to prevent unauthorized access.

  • Use a multi-signature wallet for additional transaction verification.

Tools to Enhance Security:

  • Etherscan’s Token Approval Checker – To review and revoke wallet access permissions.

  • Glassnode Alerts – To receive notifications of suspicious transactions in your wallet.

  • Chainalysis & CertiK Security Tools – To track and analyze suspicious activity.

Conclusion

Threats in the crypto world continue to evolve, making the security of digital assets a top priority. By implementing these five security steps, you can reduce the risk of hacking and protect your investments.

  • Use hardware wallets instead of keeping funds on exchanges.

  • Enable 2FA and avoid SMS-based methods.

  • Always verify URLs and emails to avoid phishing attacks.

  • Only keep a small amount of crypto on exchanges.

  • Update wallets and revoke access to unnecessary applications.

Awareness and good security practices can protect you from losing assets in this risky crypto world.

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