.png){kind=logo}
Strong passwords and app-based 2FA provide the first line of defense against hackers.
Keep long-term crypto holdings in self-custody instead of leaving everything on an exchange.
Recent exchange hacks prove that personal security habits matter just as much as platform security.
Crypto has become more popular than ever, and with its growing popularity, a lot of crypto platforms are now major targets for cybercriminals. Every year, hackers steal millions of dollars from crypto platforms and individual users. In some cases, they attack exchanges directly. In others, they trick people into giving away their login details. This means that even if you use a trusted exchange, your account still needs proper protection.
The biggest lesson from recent crypto hacks is simple. A secure exchange alone cannot keep your funds safe if your own account security is weak. A few smart habits can lower the chances of becoming a victim and help protect your digital assets.
Your password is important, but it is not enough.
Turn on two-factor authentication, also called 2FA. This security feature asks for a second code after you enter your password.
The best choice is an authenticator app like Google Authenticator or Authy. These apps create a new code every few seconds.
Try not to use SMS codes if you have another option. Hackers can steal phone numbers through SIM swap attacks. If they get your phone number, they may receive your login codes.
Many people use the same password on many websites. This is very risky.
Create a password that is long and hard to guess. Use letters, numbers, and symbols. Make sure you do not use the same password anywhere else.
If another website gets hacked, criminals often try the same password on crypto exchanges. A unique password helps stop this type of attack.
Your email account is very important because it connects to your crypto exchange account. If someone gets into your email, they may change your exchange password and take control of your account.
Protect your email with a strong password and two-factor authentication. Check your account activity from time to time. Remove old recovery phone numbers or email addresses that you no longer use.
Many hackers create fake exchange websites. These websites look almost the same as the real ones.
If you enter your username and password, hackers collect your details.
Always check the website address before you sign in. Save the official website in your browser and use that bookmark every time. Do not click login links from unknown emails or social media posts.
Also Read - Rise of Fake Crypto Exchanges: How to Protect Your Digital Assets?
Many crypto exchanges have a feature called withdrawal whitelisting.
This feature allows withdrawals only to wallet addresses that you approve.
If a hacker enters your account, they cannot send your crypto to their own wallet unless that wallet is already on your approved list. This gives you more time to stop the attack.
Crypto users often say, "Not your keys, not your coins."
An exchange is a good place to trade, but it should not become your long-term storage.
Keep only the crypto you need for trading on the exchange. Move the rest to a hardware wallet or another secure offline wallet. This lowers the amount you could lose if an exchange gets hacked.
Your account can become unsafe if your phone or computer has malware.
Update your device whenever a new security update becomes available. Use trusted antivirus software. Do not download cracked software or unknown apps because they may contain harmful files.
Lock your phone and computer with a password, fingerprint, or face unlock. This makes it harder for someone to use your device without your permission.
Most crypto exchanges let you see your login history. You can also check your active devices, IP addresses, and API keys.
Look at these details every few weeks. If you notice a device or login that you do not recognize, change your password right away and remove that device from your account.
Scammers often pretend to work for a crypto exchange.
They may contact you through email, Telegram, Discord, or social media. They may ask for your password, verification code, recovery phrase, or private key.
Never share this information with anyone.
A real crypto exchange will never ask for these details.
Recent hacks indicate that even the largest exchanges can be the targets. In February 2025, Bybit was hacked in what has been described as the largest crypto exchange hack in history. During the approval process for a digital wallet, attacks were made that compromised a third-party wallet system. An estimated 400,000 ETH, with a value of $1.4 to $1.5 billion, was taken away from the exchange. Later on, U.S. authorities connected this hack to the Lazarus Group from North Korea.
In July 2025, Indian crypto platform CoinDCX reported having suffered from a security incident that affected one of their operational accounts. An estimated $44 million was lost in the incident, but the company stated that customer assets did not suffer. However, the incident highlighted how hackers also focus on the internal, privileged accounts of the crypto platforms.
Another major case of cyber attack happened in July 2024 when WazirX lost approximately $235 million amid hackers exploiting technical vulnerabilities in the multi-signature wallet provided by a third-party custody provider. Investigators later also confirmed that this attack was linked to the Lazarus Group.
In 2025, the Iranian crypto platform Nobitex was hacked, namely, $90 million worth of its digital assets was taken during the cyber attack linked to the hacking group Predatory Sparrow. The incident showed that exchanges could also be targeted for political purposes.
Also Read - Binance vs Bybit 2026: Features and Fees Compared
Cryptocurrency allows users complete access to their money, but it is also important to be careful with security. Good password choice, two-factor authentication, a safe email account, withdrawal whitelisting, and self-custody will help mitigate any risks. Besides, conducting regular operations with a cryptocurrency account will make a difference.
The unprecedented hack of Bybit, along with the events involving CoinDCX, WazirX, and Nobitex, warns everyone about the continuous hunt of cybercriminals and the necessity to protect user accounts.
1. What is the safest way to secure a crypto exchange account?
Enable app-based two-factor authentication, use a unique strong password, and secure your email account.
2. Why is SMS-based 2FA less secure?
Hackers can perform SIM swap attacks to receive SMS verification codes and gain account access.
3. Should I keep all my crypto on an exchange?
No. Keep only the amount needed for trading and store long-term holdings in a hardware or cold wallet.
4. What is withdrawal whitelisting?
It is a security feature that allows withdrawals only to pre-approved wallet addresses.
5. What was the biggest crypto exchange hack in recent years?
The Bybit hack in February 2025, which resulted in the theft of around 400,000 ETH worth approximately $1.4–1.5 billion.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
