Are you storing your cryptos online ? Here’s why it’s a mistake to avoid according to an expert !

Crypto security is back in the spotlight. As bull market cycles attract a wave of new users to the crypto market, the temptation to relax vigilance is strong amid the excitement generated by centralized exchange platforms. Ian ROGERS, Chief Experience Officer at Ledger, one of the world leaders in hardware wallets, has warned about the dangers that managing funds through intermediaries can bring. This warning is all the more relevant after the scandals associated with centralized exchanges like FTX.

The temptation of centralized exchanges during bull cycles

Ian ROGERS, Chief Experience Officer at Ledger, expressed his concern in an interview about the trend of users neglecting the security of their assets during market growth phases. For him, “every bull cycle brings with it an apparently rational reason to compromise security, self-custody, or both.” This abandonment of good practices often results in storing crypto on centralized exchange platforms, where users falsely believe their funds are safe. ROGERS emphasizes the importance of self-custody and asserts that if one does not use this method, “why even bother with crypto?“.

These warnings resonate particularly after the collapse of the FTX exchange platform, where users lost millions of dollars.

The rise of cybercrime

Beyond the issue of centralized platforms, Ian ROGERS also draws attention to the evolution of cyberattacks in the digital economy. According to him, “each year, one could say it was the worst for cybercrime, and it will be true.” With the increasing sophistication of attacks and the volume of assets at stake, the risks for users are growing. He highly recommends using hardware wallets, like those offered by Ledger, as well as “clear-signing” technologies that allow users to verify transactions before approving them.

The importance of these security measures was highlighted in December 2023 when Ledger identified a critical flaw in some decentralized applications based on the Ethereum Virtual Machine (EVM). Exploited by hackers, this vulnerability led to a loss of $600,000 for affected users. This incident clearly shows that even decentralized technologies are not immune to cyberattacks and underscores the need for investors to strengthen the security of their assets. In an environment where threats are constantly evolving, solutions like hardware wallets and secure validation systems (“clear-signing”) are simply essential to ensuring the protection of funds.