Bitcoin was introduced to the market around ten years ago, and since then, the crypto market has been expanding. Even though the bearish trend worried many, ventures did not stop stepping in, and investors did not stop investing.
The overall crypto industry has made significant progress towards a decentralized form of money. The number of crypto exchange is increasing globally. Crypto has legal verification in many countries.
However, the crypto market faces one issue: the threat of being hacked. The exchanges are most often vulnerable to such attempts.
Coincheck, a crypto exchange in Japan, was hacked at the beginning of 2018. This attack was the most significant breach of a digital cryptocurrency network since the Mt. Gox hack four years ago. A few more hacks followed in the last year.
As per ‘Ledger’ ( which is a known hardware wallet manufacturer), more than USD 850 million worth of cryptocurrency ( which is worth over 50% of all looted crypto since its introduction) was looted from online exchanges in 2018. But these hacks are not stopping the crypto market from growing.
Here are the areas on which ventures can focus to boost consumers’ confidence and increase adoption:
1. Rules & Regulations
It is essential to protect the interests of both businesses and customers, so financial regulators would need to have an approach that would assure this. The crypto market should be looked at with an equivalent level of checking and investigation. Regulators would have to make their compliance criteria accordingly.
Many government organizations worldwide are updating their KYC and anti-money laundering policies, which is commendable. However, a few sectors of the financial industry are lagging behind.
If we want investors to invest in crypto, we will have to create and maintain a secure and decentralized ambiance (these are crypto’s core components). Only with a reliable crypto exchange system can we expect to increase social adoption.
2. Business Security
All crypto exchanges and ventures operating in the Crypto space need to ensure security. Businesses are now becoming aware of the safety of their private keys on digital/crypto exchanges. The successful hacking of Cryptopia and the secretive vanishing of private keys on QuadrigaX are enough to warn about the risk involved in trusting third parties when it comes to the custody of digital assets.
3. Educating Users/Clients
The last key is to improve individual and institutional education related to cryptocurrencies, plus create awareness of the safe handling of these assets.
