From the Hyobi blog.
As most holders of cryptocurrencies know, owning digital assets comes with its attendant risks – whether it’s losing your capital or losing assets through malicious attacks such as theft, hacks or scams.
The crypto risk environment has however been heightened in recent months, with Chainalysis reporting that the first seven months of 2022 saw $1.9 billion in cryptocurrencies stolen. This is up 60% from the same period last year. Major security incidents include the $625 million hack of Axie Infinity’s Ronin network in March, and more recently the $190 million hack of crypto bridge Nomad.
And it’s not just hacker attacks users need to worry about: they now run the risk of seeing their assets wiped out from crypto platforms facing liquidity issues or insolvency, or from crises involving tokens such as TerraUSD and HUSD.
In this uncertain and volatile market, how can crypto users better safeguard their assets?
First, with cybercriminals constantly upping the game in stealing digital assets, it’s important to find an exchange that operates with security at its core. As a single security incident could compromise hard-earned trust built up over the years, Huobi Global’s values are strongly aligned with its goal of earning users’ trust over the long term.
Protecting user assets from attacks
To defend itself against professional hackers, Huobi Global has implemented a comprehensive security system covering blockchain security, wallet management, user asset protection and application security.
In addition to installing anti-DDOS systems and a professional distributed architecture, the exchange keeps 98% of its digital assets in multi-signature cold wallets, which function as a vault for less-frequently traded assets. Unlike conventional crypto wallets, multi-signature cold wallets require more than one private key to authorize a transaction. Such wallets add an extra layer of security, as multiple key holders have to be accountable to one another.
Huobi Global currently has a total of 15 private key controllers, ensuring platform funds are secured and will not be compromised due to the actions of a single party. Multiple security processes are in place to ensure the availability of private keys at Huobi Global. In addition, proprietary security hardware ensures the robustness of storage at the centralized exchange.
Huobi Global also employs an independent and professional security team with extensive experience in blockchain and wallet security. They have put in place a number of detection tools and countermeasures to mitigate attacks on the exchange’s systems. The security of each operational process at Huobi Global is assured through strict processes, many of which can only be carried out with the authority of more than one party.
All these measures have ensured that Huobi Global has not recorded a single major security incident resulting in the loss of user assets since its inception in 2013 – a stellar track record that’s unmatched in the industry.
Protecting users in a token crisis
Increasingly, users face a different kind of risk when issuers of popular tokens such as TerraUSD and HUSD face liquidity issues, resulting in their value nosediving. In such situations, Huobi Global’s strategy has always been to assess the situation in a timely and appropriate manner with user interests at the heart, promptly informing users of the risks, and operating its platform on a user-centric basis.
During the recent depegging of HUSD, Huobi Global first alerted users to HUSD’s liquidity issues on its official Twitter account, while its team worked with HUSD’s issuer to restore its stability. In the interim, the exchange allowed users to freely convert HUSD to other stablecoins such as USDT or USDC. The liquidity issues proved to be short-lived as HUSD’s price started to rebound from around 10pm the same day – around 12 hours after the crisis started.
While the loss of HUSD’s dollar peg inevitably drew comparisons with the spectacular collapse of TerraUSD just three months earlier, HUSD’s swift rebound suggests Huobi Global’s precise and timely actions helped to avert a larger crisis.
Huobi Global’s commitment to user security
Huobi Global continually steps up its systematic protection at multiple levels to keep pace with the evolving security environment. Emphasizing the importance of exchange security, Huobi’s Co-Founder Du Jun says: “Users should always choose an exchange that operates with industry-leading security standards to mitigate the possibility of asset losses.”
Whenever a market crisis takes place, Huobi Global believes in meeting its responsibility as an industry leader to protect users’ interests. This includes providing timely updates and helping users to understand the risks.
Du adds: “We also strive to maintain market stability by not suspending deposits and withdrawals regardless of market conditions – a guarantee to users that we stand by. While it is difficult for investors in a bear market to avoid risks, such as when issuers of popular tokens run into trouble or fail, choosing high-quality projects and platforms can at least help to limit unnecessary losses.
“Huobi will continue to deal with future market crises in a timely and decisive manner, as part of our longstanding commitment to make user asset security our highest priority.”
Photo by Abhishek Yadav on Unsplash
This communication has been prepared solely for informational or educational purposes only and it is subject to change. This communication should not be relied upon as the basis for making any investment decision or be construed as a recommendation to engage in any transaction or be construed as a recommendation of any investment strategy. This communication is not a personal recommendation and does not take into account whether any transaction is suitable for a particular person. The information contained in this communication is based on sources considered to be reliable, but not guaranteed, to be accurate and complete. Huobi Global is not responsible for any information obtained or derived from third party sources or statistical services. Any opinions or estimates expressed herein reflect the position as taken as of this date (or date of publication), and are subject to change without notice.
This article came directly from the Hyobi Global blog, found on https://blog.huobi.com/why-your-crypto-assets-are-at-greater-risk-than-ever-and-how-to-protect-yourself/