Cryptocurrency may be digital, but that doesn’t mean it’s immune to hacking. In fact, cryptocurrency exchanges and wallets are hacked all the time, leading to millions of dollars in losses for investors. Even someone the size of Binance was recently hacked for over half a billion dollars. So, how does this happen? Let’s take a look at a few of the most common methods used by hackers to steal cryptocurrency.

One of the most common methods used to hack cryptocurrency exchanges is phishing. Phishing involves tricking users into sharing their login credentials or personal information by disguising themselves as a trustworthy entity. Hackers will often create fake websites or send emails that look identical to those of a legitimate company in order to gain access to people’s accounts. Once they have login information, they can then transfer funds out of the account and into their own wallets. They may also airdrop worthless tokens that can only be redeemed by logging into their exchange. They’ll drain your wallet once you transact on their site, usually because they’ll tell you to enter your seed phrase for Metamask.

DNS Hijacking
Another method used by hackers is DNS hijacking. This occurs when a hacker changes the DNS settings of a website so that users are redirected to a fake website that looks identical to the real thing. Once on the fake site, users may be prompted to enter their login credentials, which gives the hacker access to their account. From there, they can again transfer funds out of the account and into their own wallets. Crypto hacking groups are good at hiding their tracks, so you’ll likely never find them.

Malware Attacks
Hackers will often use malware to infect computers and gain access to people’s accounts that way. Malware can be delivered through phishing emails or fake websites, and once installed on a victim’s computer, it can allow hackers to remotely access the machine and any accounts that are logged in. Cryptocurrency exchanges and wallets are often targets of malware attacks because they typically store large amounts of Bitcoin or other cryptocurrencies.

Cryptocurrency may be digital, but it’s still vulnerable to theft by hackers. The most common methods used by hackers include phishing, DNS hijacking, and malware attacks. By understanding how these methods work, you can better protect yourself and your cryptocurrency from theft.