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Lessons from the Bitrue Hack: Importance of Multi-Factor Authentication, Risks of Storing Large Amounts of Crypto on Exchanges, and Due Diligence

As a tech investor and entrepreneur, I have been keeping a close eye on the recent news of Bitrue, the crypto exchange that was hacked of $23M in Ether, Shiba Inu, and other tokens. This unfortunate event highlights the need for increased security measures in the crypto industry, as the risks associated with trading and storing cryptocurrencies continue to grow. In my experience, there are several key takeaways from this hack that investors and traders should keep in mind.

The Importance of Multi-Factor Authentication

One of the most concerning aspects of the Bitrue hack was the fact that the hackers were able to bypass the exchange’s security measures, which included two-factor authentication. This highlights the need for more advanced security measures, such as multi-factor authentication, which requires users to provide more than one form of identification to access their accounts. This can include a password, a fingerprint, or even facial recognition software.

The Risks of Storing Large Amounts of Crypto on Exchanges

Another lesson from the Bitrue hack is the risks associated with storing large amounts of crypto on exchanges. While exchanges can provide a convenient way to trade cryptocurrencies, they can also be a target for hackers. Investors and traders should consider storing most of their crypto in secure hardware wallets, which are much less susceptible to hacks.

The Importance of Due Diligence

Finally, the Bitrue hack highlights the importance of due diligence when choosing a crypto exchange. Investors and traders should research exchanges thoroughly before depositing any funds, and should only use exchanges that have a proven track record of security and reliability. This can include checking reviews online, researching the exchange’s founders and management team, and verifying that the exchange is licensed and regulated by reputable authorities.

In conclusion, the Bitrue hack is a sobering reminder of the risks associated with trading and storing cryptocurrencies. As an investor and entrepreneur, I believe that the crypto industry needs to continue to evolve and improve its security measures to prevent similar hacks from occurring in the future. By taking steps to increase security, such as implementing multi-factor authentication, storing crypto in hardware wallets, and conducting due diligence when choosing an exchange, investors and traders can help protect themselves and their assets in this exciting but risky new industry.