Is Security of Crypto Exchanges Far From Being Infallible?

Crypto investors have come to rely on crypto exchanges because they provide liquidity, a wide range of trading pairs and convenience.

Over the years, crypto exchanges not only converted cryptos but also became custodians and even lenders by offering funds for margin trading.

Crypto hacking attacks don't go awayIronically, the prefix of the term "Cryptocurrency" was meant to show how secure the transactions and crypto operations are supposed to be.

How is it that we constantly hear about crypto exchanges being successfully hacked?

Large crypto exchanges are attacked by hackers on a constant basis because of obvious reasons.

Year-to-date, the total volume of crypto-related fraud and theft resulted in losses worth $4.4 billion, according to CipherTrace's report for the third quarter of 2019.The most common types of attacks on crypto exchanges include using social engineering, DDoS attacks and injecting malicious code through malware.

Crypto holders are tricked into believing that they are dealing with a genuine crypto service, while in fact they are handing their personal data and private keys over to hackers.

Can an exchange impenetrable for hackers be built?The security of large crypto exchanges has evolved to the point that there are very few points of failures - but they still exist.

Some crypto exchange services claim that they have no single point of failure, as they don't hold clients' crypto funds.

All in all, the security of most crypto exchange is far from being infallible, as the cryptocurrency market is still struggling with regular threats from hackers.