The most vulnerable aspect of the cryptocurrency sector
The cryptocurrency market is considered an ambiguous market in light of the absence, so far, of laws that protect investors, especially young people and beginners, in the event that they are exposed to fraud.
The Spanish magazine Muy Negocios Y Economia said that increasing investment in digital financial assets entails new legal risks. It assumes that entrepreneurs, investors and advisors are constantly aware of new regulations and take into account all applicable case law on this matter.
In this report, the magazine highlighted some of the main risks that a person can be exposed to when investing in cryptocurrencies.
Not having high digital skills can expose the investor to malware attacks, where someone will target your computer and steal your data and the digital currencies you own. This risk is not limited to hackers infiltrating each user's individual accounts; In fact, the blockchain system is also at risk of being hacked, which affects the value of currencies, causing market turmoil and massive financial losses.
According to a security report issued by Hacken, a company specialized in auditing the security of blockchain networks, it was stated that the human factor remains the most vulnerable aspect in the cryptocurrency sector, as access control violations recorded the highest levels of financial losses, reaching $449 million in only 8 incidents. .
The report also reviews the outbreak of rug sweeps, a fraudulent strategy characterized by sudden cash withdrawals, which turned out to be the most common form of attack, although the financial losses from them were much lower compared to access control violations.
The report also reveals that schemes with poor audit levels are most at risk, as users often ignore discouraging audit results.
The report also urges investors to analyze several aspects such as ownership of digital tokens, liquidity conditions and audit results before investing in any project.
In this way, the report seeks to raise awareness about the risks associated with investing in cryptocurrency projects and motivate investors to carefully analyze and evaluate risks before making their financial decisions.
