China to Launch Its Own Digital Currency Later This Year

China to Launch Its Own Digital Currency Later This Year

In order to remain ahead in the global competition, China plans to launch its own digital currency known as Digital Currency Electronic Payment (DCEP). The digital currency will stimulate daily banking activities like deposits, payments, and withdrawals from the digital wallet. Crypto news website Coin Journal shows that the People’s Bank of China, China’s central bank has initiated the efforts to roll out its very own digital currency. It is an effort aimed at staying ahead among all the central banks worldwide as well as preserving financial sovereignty.

Working of the Digital Currency

The digital currency of China on being launched will require the consumers to download the electronic wallet application. Then they will have to link the application to the bank card and start making transactions. The money that consumers have in the linked bank account will be converted into digital form, thereby facilitating the transactions.

Moreover, the DCEP system will allow transactions even when consumers do not have access to internet connections. This is a unique feature and sets it apart from the existing online payment platforms. With the ‘touch and touch’ system, it will enable the users to transfer money with a simple touch on their mobile devices. It ensures that no payment record is left behind for the banking system as well as any third party.

Reason of the Introduction of Digital Currency by China

The introduction of the digital currency of China aims at enhancing the regulatory authorities’ ability to examine the financial as well as the payment system of the nation. It will provide more power to the officials to keep track of how citizens use the money. The emergence of the digital Yuan will make cash flows traceable as the transactions will take place online.

The digital Yuan will encourage more online financial transactions as well as business activities. The easy availability of information relating to credit data and cash flows through the online database will enable convenient determination of the society’s credit structure. The view of the overall credit structure will help in influencing the supervisory structure, thereby allowing a change in the means, methods, as well as the effects. Moreover, the real-time checking of the database will help in better digital record keeping. It proves to be useful in keeping a check and control the tax evasions, money laundering, and other offenses in the nation.

The launch of the digital currency also aligns with the initiative of China to internationalize Yuan. In case the new payment system includes cross-border payments, it will help in enhancing the status of the reserve currency. In addition, the digital Yuan would also bring down the transaction costs for the various enterprises, which was high in the case of paper cash.

Difference between China’s Digital Currency and Cryptocurrency

While the cryptocurrencies are designed to disperse the power of the governments, the digital Yuan will be privately managed by the central bank of China. The virtual currencies like Bitcoin use the blockchain technology and functions under a decentralized public computer network. On the other hand, the DCEP system will not use the blockchain system.

In the case of the cryptocurrencies, it is the individual having the currency can verify the distribution as well as an increase in digital money. It avoids the interference of the government. However, in the digital currency of China, the government has a high involvement, which increases political interference risks. The central bank of China will have greater control over the total money supply volume.

The digital Yuan will enable the generation of more business activity information in real-time. This helps the central bank to ensure better stability of the Yuan value. It will also help in effectively regulating the cycles of the boom as well as the bust of the economic activities. While China’s digital currency will help in controlling the activities like money laundering and tax evasions, cryptocurrencies fail. They are vulnerable to volatile trade prices as well as illegal activities.

The Date of Launching China’s Digital Currency

The date of launching the digital Yuan has not been officially announced yet. However, according to the speculations, the digital currency of China will be made available to the public in the later period of 2020. In the month of May, digital Yuan trails are all set to begin in the cities of Suzhou, Xiongan, Shenzhen, and Chengdu. All the trials, as well as tests of the digital currency of China, will be conducted within closed environments.

The test and trials will include small transactions in order to prevent affecting commercial operations. In the pilot program, along with the local retail shops and restaurants, certain foreign consumer brands were included by the People’s Bank of China. The launch of the digital currency will increase the adoption rate of the currency among the people. Crypto news website Coin Journal can offer people will more such latest information relating to the digital currencies.

Disclaimer

The views and opinions expressed in this article are those of the contributor and do not necessarily reflect the view of Blockchain. News. Investors should be well aware of the volatility of cryptocurrencies and conduct their own research before making investment decisions.

Source: blockchain.news

Author: Drishti Bhagat


A crypto investor lost nearly $250,000 after his chosen fund collapsed during the coronavirus sell-off | Currency News | Financial and Business News | Markets Insider

A crypto investor lost nearly $250,000 after his chosen fund collapsed during the coronavirus sell-off | Currency News | Financial and Business News | Markets Insider

FILE PHOTO: Representations of virtual currency Bitcoin and U.S. dollar banknotes are seen in this picture illustration taken January 27, 2020. REUTERS/Dado RuvicReuters

  • An investor in cryptocurrency hedge funds saw nearly 99% of a $250,000 investment wiped out after his chosen fund collapsed during the market meltdown.
  • “I don’t really know what happened,” Vlad Matveev told the Financial Times.
  • Matveev detailed Cryptolab Capital’s explanation in a Medium blog post: the fund took a leveraged position in March, and a lack of liquidity and rejection of sell orders stopped it from pulling out when crypto prices tanked.
  • Crypto hedge funds lost an average of 26% in March, while traditional hedge funds lost about 8%, the Financial Times said, citing HFR data.
  • Visit Business Insider’s homepage for more stories.
  • An investor handed $250,000 to a cryptocurrency hedge fund last summer. His investment shed almost 99% of its value during the coronavirus sell-off in March, he told the Financial Times.

    “I don’t really know what happened,” Vlad Matveev told the newspaper. “They said they had a diversified set of strategies.”

    Matveev outlined Cryptolab Capital’s explanation of what happened in a Medium blog post in late March.

    The fund’s algorithm plowed an amount equal to three times its managed assets into XBTUSD, a leveraged trading product that allows investors to speculate on the bitcoin-dollar exchange rate, Matveev said, citing the fund’s managers.

    When the market plunged, the managers tried to reduce their position but were thwarted by a lack of liquidity and their sell orders being rejected, Matveev continued. The crypto exchange ultimately auto-liquidated all positions on March 12, he added.

    Cryptolab Capital didn’t immediately respond to a request for comment from Markets Insider.

    Many crypto funds were caught off guard when bitcoin and other cryptocurrencies tumbled by more than a third in mid-March. The funds lost an average of 26% that month, their second-worst monthly loss since at least 2015, the Financial Times said, citing data from hedge-fund researcher HFR.

    “It’s an understatement to say it’s a bloodbath across the board,” Eduoard Hindi, partner at Tyr Capital, told the newspaper.

    Crypto funds trailed conventional hedge funds in March, as the latter lost an average of 8.4%, the Financial Times reported.

    However, bitcoin and other cryptocurrencies have rallied strongly since then. As a result, crypto funds are up more than 13% this year, the newspaper said, striking a sharp contrast to average losses of almost 7% for the broader hedge-fund industry.

    Source: www.businessinsider.com

    Author: finanzen.net GmbH


    YoBit.net review 2020: In-depth guide to popular exchange

    YoBit.net review 2020: In-depth guide to popular exchange

    >> Buy cryptocurrencies on YoBit now <<

    YoBit is a crypto exchange currently registered in Panama and founded by the group of crypto enthusiasts and developers from Europe in 2014, is offering trading in over 1,400 cryptocurrencies and over 6,000 trading pairs. Among the most popular cryptocurrencies offered on YoBit are Bitcoin, Ethereum, Litecoin, Bitcoin Cash, DASH, Dogecoin, Monero and Zcash. The website is available in three languages: English, Russian and Chinese.

    The special thing about YoBit is that it is one of the few cryptocurrency exchanges that is not yet regulated. This means for users of the platform that on the one hand it is not known who is behind the trading platform, on the other hand YoBit is much more anonymous compared to other exchanges. This means for potential users that there is no company that is responsible for anything.

    On the other hand, YoBit does not check your identity within the scope of the KYC (“Know your customer”) procedure which is obligatory in Europe, for example. For crypto investors this is a plus because the lack of KYC guarantees more security because you do not share your personal data with 3rd parties. Be private and anonymous it’s essential in crypto and YoBit strongly follows this rule. Further, the registration in Panama helps YoBit to keep data in a safe jurisdiction and not to be influenced by government authorities (YoBiCrypto Corp., 0801-3254 Panama City, Plaza 2000 Tower, Calle 50 Panamá).

    YoBit has established itself as a leader in the Russian market and is now conducting a global expansion. More than 166,000 followers on Twitter speak for the fact that YoBit is no scam. This is also shown by the fact that YoBit is ranking within the top-10 of cryptocurrency exchanges. Already now the exchange has a lot of customers from all over the world.

    One of the biggest advantages of YoBit is the insanely large selection of different cryptocurrencies. At the time of writing (05/2020) YoBit offered a total of no less than 1,431 different cryptocurrencies. Of course the most important cryptocurrencies are represented.

    If you can’t find an Altcoin on other exchanges, there is a good chance that you can find it at YoBit. Below you will find a list of the most popular and important cryptocurrencies on YoBit:

    • Bitcoin
    • Bitcoin Cash
    • Ethereum
    • DASH
    • Dogecoin
    • Litecoin
    • Monero
    • ZCash
    • OmiseGo
    • WAVES
    • TRON
    • Verge
    • Bytecoin
    • NEM
    • EOS
    • DigiByte
    • Zilliqa
    • Holochain
    • PundiX

    The purchase of cryptocurrencies is possible by means of various trading pairs against for example Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Dogecoin (DOGE), Waves (WAVES) and the YoBit Token (YO). The exchange also offers various pairs against the US dollar (USD) and the Russian rouble (RUB).

    >> Buy cryptocurrencies on YoBit now <<

    Like other exchanges, Yobit.net charges fees. According to YoBit’s website, the exchange charges a commission for each transaction, which depends on the cryptocurrency itself. However, according to YoBit, this usually does not exceed 0.2% of the transaction amount. Thus, it relies on a “flat fee model” instead of a “maker/taker” model like other exchanges. In addition, YoBit thus positions itself in the lower to middle range, as the industry average is around 0.25%.

    Deposit and withdrawal fees depend on the payment method and can be seen in the table below. To get an overview of all possibilities, we recommend you visit the fees page of YoBit.

    Setting up an account on YoBit is very simple and straightforward. The process should normally take no longer than 5 minutes. To start the registration process, first click on “Registration” (top right). Then you only have to enter very few details about yourself: a login, an e-mail address, and a password for the website.

    registration yobit

    YoBit will then send you a confirmation e-mail to verify your e-mail address. This was it already! The aforementioned information is already enough to be able to make transactions. You do not need to provide any further information. Account verification is probably also one of the factors that determine the popularity of YoBit.

    On YoBit there is only one account type and no other options. As far as limits are concerned, YoBit does not provide any information on whether there are any limits associated with transactions on the platform. However, according to the feedback from the community, there are no deposit or withdrawal limits. To be on the safe side, you should contact support for higher amounts.

    >> Buy cryptocurrencies on YoBit now <<

    The trading process on YoBit’s website is practically indistinguishable from other exchanges. To trade cryptocurrencies, you need to go to the “Trade” tab. We will show you the individual setting options below. But first you should know how to make a deposit. To do this, go to “Wallets” and then select the cryptocurrency you wish to deposit. In the corresponding row, click on the plus (+) in the “Deposit” column. Now you will see your deposit address.

    If you don’t have a cryptocurrency yet, YoBit also offers the possibility of depositing in US dollars or Russian roubles. To do so, go to the “Wallet” section and enter “USD” in the search field. You will then see the US dollar in the first place and click on the plus (+).

    Afterwards you have three different deposit options available: PerfectMoney, AdvCash and Payeer – all free.

    To get you started, we would like to introduce you to the user interface and the individual functions of YoBit.

    yobit trading

  • “Balances”: shows your credit balance in the individual cryptocurrencies (BTC, LTC, etc.)
  • “Market”: As we will explain in a moment, you choose your desired cryptocurrency or trading pair here.
  • Chart: In this area you will see the classic candlestick chart of the trading pair you selected under 2. There are 5 time slots available: 12 hours, 24 hours, 7 days, one month and 6 months.
  • “Buy”: If you want to buy a cryptocurrency, enter the amount in this area. You will also see the trading fee that YoBit charges.
  • “Sell”: If you want to sell a cryptocurrency, enter the amount of the sale in this area.
  • “Sell Order and Buy Order: In this section you can see the order book of the exchange for the selected trading pair, i.e. the orders of other traders. As a beginner, you should not be distracted by this area. It should not be very interesting for you.
  • “Trade History”: History of all transactions.
  • To make a trade, you should select the “Trade” section (step 1). In the second step, go to “Market” and select the trade pair you want to trade. For example, if you want to trade BTC for ETH, click on “BTC” in the upper blue bar and select “ETH” in the area below.

    yobit trade bitcoin

    Then you can go to step 3 and put your attention on the “Buy” area. There you only have to enter the amount (“Amount”) you want to buy. Selling crypto-currencies works in the same way, only that you select the “Sell” area in step 3.

    >> Buy cryptocurrencies on YoBit now <<

    As for any cryptocurrency exchange, we recommend you to use an external wallet to increase the security of your cryptocurrencies. An overview of all possibilities and options of wallets can be found here.

    To make a payout, go to the “Wallet” area and select the payout option in the “Withdrawal” column.

    The security of the trading platform should be a top priority for traders. Therefore, it is crucial that you learn about the security measures and reputation of the platform. Regarding security measures, YoBit has taken several measures to ensure the security of user information, including Secure Sockets Layer (SSL) encryption. YoBit also offers a 2-factor authentication function.

    Previously, some users reported long waiting times for payouts, so YoBit has now improved their systems and all payouts are very fast. In case you can contact the telegram support, they will do their best to make sure that the process is faster. Irrespective of this, it is also advisable to take larger cryptocurrencies for payouts or the status of the wallet should be checked in advance.

    YoBit itself enjoys a good reputation among experts in the crypto industry due to the advantages it offers, as shown by the 166,000 followers on Twitter (as of May 2020). Otherwise, there are also numerous good ratings on the rating portals such as Trustpilot, Cryptowisser and Bestchange. On these platforms especially the very good and fast support is praised, as well as the huge number of Altcoins that can be purchased.

    As already mentioned, the flat fee for YoBit generally never exceeds 0.2% of the transaction amount. Thus, YoBit relies on a different fee model, like other exchanges (e.g. Binance, Kraken and Coinbase Pro), which use a “maker/taker” model. In addition, YoBit thus positions itself in the lower to middle range, as the industry average is around 0.25%.

    As a customer you can log in to your YoBit account and submit a support ticket if you have problems. On their website, YoBit states that they will respond to submitted support tickets within one hour, although it may take up to 24 hours under certain circumstances. If you want more fast way, you can also use the Telegram group of YoBit. There are more than 80,000 people in the YoBit telegram community and 10 admins are 24/7 online to answer any questions. Furthermore, YoBit also offers a chat box on the right side of the website to answer general questions. We have had very good experience with YoBit’s support.

    If you want to use YoBit as a marketplace for cryptocurrencies, you should be aware of the advantages and disadvantages we have described. Unlike many other crypto exchanges worldwide, the exchange offers the advantage that no extensive verification of the account is required. In addition, YoBit’s fees are very competitive and are in the lower range compared to the typical maker/taker fees on other exchanges.

    Although YoBit has so far focused on the Russian market, the platform is now aiming for worldwide expansion. The numerous positive reviews on the above mentioned rating portals show that YoBit is no scam. Especially for crypto enthusiasts who want to buy rather unknown cryptocurrencies, YoBit is a very good address worldwide.

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    Source: www.crypto-news-flash.com

    Author: Jake Simmons


    How does cryptocurrency exchange with leverage attract more traders

    How does cryptocurrency exchange with leverage attract more traders

    The striking growth and popularity cryptocurrency and crypto exchanges have achieved over the years have caught the eyes of the universal wide-spread media and potential investors from all over the world. From an academic concept to reality, cryptocurrency and crypto exchange businesses have come a long way and have entered the spaces of almost every major industry that has transformed digitally.

    Many newcomers are aspiring to invade the cryptosphere with their cryptocurrency exchange software, but the constant price fluctuations in the crypto values make them uncertain and bring in fear of missing out. This is where cryptocurrency leverage exchange comes into play and makes it easy for the customers. A leverage exchange platform brings in zestful opportunities and advantages for investors, like never before, which is why it attracts more traders than any other existing exchanges. But, what is a crypto exchange leverage? How does it work? And how does it benefit? Let’s find out.

    A Cryptocurrency exchange with leverage allows traders to borrow funds from other users or directly from the exchange to initiate trades quickly and efficiently, and expand their position in the market. Simply put, instead of investing the full market value of an asset, a leverage exchange platform allows the trader to operate on a margin: leverage ratio, the leverage value being substantial than the margin the user deposits in the exchange. It helps investors with fewer chances of being prone to price fluctuations and conduct trades without being affected by it, with a minimum margin investment.

    Let’s quickly look at an example that will help you understand the above-mentioned explanation, distinctly.

    A leverage/margin exchange platform allows an investor to deposit a margin of 1BTC and expand the trading position upto 100 BTC value.

    So, Now, Imagine the current bitcoin value is $13,000.

    And within short turnaround time, the value is expected to go up to $13,500.

    But unfortunately, you have only one bitcoin and cannot make use of the opportunity.

    In the case of a leverage exchange platform, you can deposit the 1BTC as the margin and leverage upto 100, which multiplies the value upto $13,50,000.

    Thus, when the BTC price increases, you will make a profit of $10000 instead of the actual gain of $500.

    There is a wide range of exchange platforms available in the market, but why should you invest in cryptocurrency exchange with leverage? What are the other reasons than the one mentioned above, for you to choose a leverage platform for your business? Let’s take a look.

    A leverage exchange platform allows the trader to go short/long, which is highly beneficial both to limit losses and boost profits. Going short means, the traders will open a short position to not be affected, if they expect the price values to decline. Going long means just the opposite. The traders will take a long position if they expect the price to rise, to amplify their profits.

    The leverage exchange platforms are useful to investors, as well as the exchange owners, as it allows them to attain greater returns by collecting transaction fees for the trades happening on their exchange platform.

    As leverage exchange platforms allow trading with a minimum margin deposit, it paves the way for small-time investors to also participate and incur huge profits for their business. Also, the trading platform is available 24/7 to global customers. Anyone from anywhere in the world can conduct trades at any time.

    In this platform, users can also utilize their unused funds, making them available for leveraging, and in return, gain enormous profits.

    The exchange automatically liquidates the trader’s position once they hit the bankruptcy limit, which will reduce the risk factors and minimizes loss values for the investors.

  • Perennial contracts
  • Dominant trade matching engine
  • GDPR compliance
  • Smart order routing
  • Auto-deleveraging
  • Partial trade closing options
  • Risk-management
  • Social/copy trading
  • Multi-account management
  • CFD/FX leverage options
  • Accumulated price feeds
  • Trading bonuses
  • Payment gateway integration
  • Marketing tools
  • Enhanced security
  • Beginning with a smaller trade position and expanding it over time.
  • Make use of demo/paper trading.
  • Understand how Take Profit (TP) and Stop Loss (SL) functionality works and use it right.
  • Fragmenting the trade positions into separate portions.
  • Setting clear-cut goals and consistently follow them.
  • Analyzing market trends, requirements for the exchange, market price values, legal frameworks involved, etc.
  • Leverage exchange platforms are all about allowing users to borrow large sums than their minimum margin investments. In this current COVID-19 situation, market prices have been profoundly fluctuating. In this scenario, there is no better solution than a crypto leverage exchange, as your minimum investment is less, but the profits are higher, and with its exclusive options like Take Profit (TP), Stop Loss (SL), and risk-management strategies rightly used, you can conduct a risk-free, hassle-free business.

    The demand and urge for cryptocurrency leverage exchange software are highly booming, and if you want to own a leverage platform, there is no better time than now. So, make use of this favourable opportunity soonest and boost benefits and profits for your business.

    Disclaimer: This is a guest post. KryptoMoney does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. KryptoMoney is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the article.

    Source: kryptomoney.com


    Ethereum news: new use cases emerge ahead of 2.0 launch

    Ethereum news: new use cases emerge ahead of 2.0 launch

    Catch up on Ethereum news here – including the latest price developments, use cases, and progress with the second iteration of its blockchain

    It’s the world’s second-largest cryptocurrency – and there’s never any shortage of Ethereum news. 

    Just some of the main headlines in Ethereum news now include the major development that ETH futures are going to be available in the United States following months of speculation. You could argue that this Ethereum market news is long overdue given how BTC futures have been available since 2017.

    One of the reasons why this news on Ethereum has been so delayed lies in the long-running debate on whether it is a security or a commodity. ErisX, which has been given the green light to offer this service, says the futures contracts will be physically delivered and expire on a monthly and quarterly basis. 

    Stressing that its platform is fully regulated by the Commodity Futures Trading Commission, the company said: “Ethereum has genuine functionality and use cases with real people, firms and governments using the network, and it’s structure has many similarities with existing commodity markets. ErisX has taken precedents and standards already in existence from established capital markets to offer secure, transparent and innovative access to Ether.” 

    News on Ethereum price levels hasn’t been incredibly rosy of late. In a way, this is to be expected, with Bitcoin hogging all of the attention because of the halving. Now that the markets are beginning to calm down again, many investors are looking for Ethereum news that suggests this altcoin will strengthen against BTC. 

    Just like Bitcoin is facing tough resistance as it attempts to crack $10,000, ETH has had a challenge while trying to breach the seemingly impossible ceiling of $230. The main theme seen in Ethereum market news has been of a coin that has been struggling to bounce back from March’s flash crash, even as BTC has returned to levels last seen three months ago. 

    You could argue that it’s just going to take a little time for Ethereum news to catch up with Bitcoin’s good fortune. After all, BTC’s high watermark came in December 2017, while ETH’s followed early in 2018. 

    It isn’t all bad Ethereum news. Whereas the volumes of BTC being held on exchanges has fallen substantially of late, reaching lows not seen in almost a year, the volumes of ETH stored on these trading platforms is nearing record levels that were set in the first quarter of 2018.

    There’s other rosy Ethereum news on the horizon, too, considering that you can get your hands on a Bitcoin for far less ETH now than you could at the start of the year. (On January 2 it would have cost you 54.78 ETH, but at the time of writing this has tumbled to just 45.65 ETH.)

    The big bit of Ethereum news to watch out for in the coming months is the launch of Ethereum 2.0. It’s a major upgrade to the blockchain that’s going to be released in phases, marking a gradual pivot from the Proof of Work consensus algorithm to Proof of Stake.

    According to the latest Ethereum news, developers are cautiously optimistic that the new network could launch in June – and right now, the main focus is on tackling a few bugs that exist in the code. 

    There have also been some encouraging developments on compelling use cases for Ethereum, not to mention the prospect that new capital could be on the way to its blockchain. 

    The decentralised finance giant MakerDAO recently announced that it was effectively bringing BTC on to the Ethereum blockchain by adding Wrapped Bitcoin (WBTC) as a form of collateral. WBTC is an ERC20 token that’s 100 per cent backed by BTC. Ethereum news suggests that these tokens are becoming ever more popular, rapidly overtaking the more established Lightning Network. 

    Another nugget of big Ethereum news came when Reddit announced plans to launch Community Points, a crypto-focused scheme that tokenises rewards and places them on the Ethereum blockchain. Although it’s restricted to just a couple of subreddits for now, it’s expected to expand substantially when it comes off a testnet in the autumn.

    Ethereum news in 2020 has been non-stop so far, and it looks like there’s going to be plenty more to follow in the second half of this year.

    Source: currency.com

    Author: By Connor Freitas


    From BlockFi to Mt. Gox, the three largest crypto exchange hacks that every trader needs to know

    From BlockFi to Mt. Gox, the three largest crypto exchange hacks that every trader needs to know

    Crypto lending platform BlockFi was breached on May 14, an attacker compromised users’ accounts and stole their sensitive information, including names, physical addresses, and activity histories, by using SIM swaps. The New York-based investing service firm announced on Tuesday that a sole intruder got hold of a portion of BlockFi’s encrypted back office system for an hour by SIM-swapping an employee’s phone, but users’ funds were not exposed.

    5

    Zac Prince, co-founder and CEO of BlockFi

    According to the incident report published by BlockFi, “On May 14, 2020, BlockFi experienced a temporary data breach that exposed some BlockFi client data. Based on the unauthorized third party’s actions, it appears that the perpetrator attempted to make unauthorized withdrawals of client funds using the BlockFi platform, but was unsuccessful in doing so. However, the unauthorized third party was able to access BlockFi client information typically used by BlockFi for commercial marketing purposes.”

    Unfortunately, this isn’t the first time in 2020 that our crypto starship suffered a breach. The concept of cryptocurrency was first brought to the public with the launch of Bitcoin in 2009. Since then, many other cryptocurrencies, aka altcoins, have also surfaced. Although over the years, cryptos have turned out to be an excellent alternative investment, the fact that cryptocurrencies are traded in an unregulated environment makes exchanges more prone to breach. Once their shields failed to protect the exchanges and their customers, thousands of users will lose their funds. Let’s have a look of the three largest cryptocurrency exchange hacks of all time.

    The biggest cryptocurrency heist in history happened in January 2018 when the Tokyo-based company lost over USD 500 mln worth of NEM coins. The president of the NEM.io Foundation described it as “the biggest theft in the history of the world.” He added that the hack was a surprise, but all victims have been repaid, and Coincheck survived the hack and is still in operation.

    1

    From 2013 till 2014, Mt. Gox was one of the leading cryptocurrency exchanges, with over 70% of all bitcoin transactions in the world were executed on its exchange platform. Things went south in Feb 2014 when Mt. Gox suspended the transactions, closed the website, and filed for bankruptcy. People learned the harsh truth that a total of 850,000 bitcoins were stolen from 2011 to 2014, and the exchange’s cold wallets were empty by 2014.

    What exactly went wrong at Mt. Gox was never made clear. Still, for sure, the chance of recovering all stolen bitcoins, which valued at USD 460 mln at that time, is incredibly slim. The company and its owner Mark Karpelès have been mired in lawsuits brought by investors hoping to get their money back.

    2

    Mark Karpelès, CEO of Mt. Gox.

    This hack happened in February 2018 and led to a total loss of 17 mln Nano coins, with USD 195 mln being stolen. The saga of the Nano development team and BitGrail was probably the reason this hack got so famous. The CEO of BitGrail,  Francesco Firano, suggested that Nano’s software vulnerabilities may be the reason behind this attack, while the Nano development team strongly denied it. A series of accusations by BitGrail has made Nano become the first crypto company to undergo a trial with investors forcing a hard fork to recover their funds.

    3

    The increasing accessibility of online crypto trading also comes with a higher risk of suffering breaches by hackers. We recommend traders and investors always monitor your portfolio activities and prevent the leak of personal info by adopting end-to-end encryption apps to secure your data and communications. Also, using your cold wallets instead of the one in exchanges could also help. Please bear in mind that “not your keys, not your coins.”

    Source: www.okex.com


    China to Launch Its Own Digital Currency Later This Year

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