Influence of crypto rapid rise
According to Forbes, from 2017 to 2018 Bitcoin grew in price by more than one thousand percent. Such a rapid rise could not help but attract a huge number of new players to cryptocurrency trading and mining. With the following increase in hash-counting difficulty, the profitability of home-based mining decreased. Cloud mining providers came forward and made mining easier than ever, offering low cost of entry, and saving their clients from the troubles of building and maintaining their own farms.
Due to high profits, the crypto industry is full of risks, hacker attacks being one of the biggest. Attackers are most attracted by the services that store large volumes of cryptocurrencies: mining services and exchanges.
Over the past few years, there has been a number of disturbing incidents. In 2017, one of the top cloud mining services, Genesis Mining was attacked. Hackers transferred large amounts of funds from the company’s hot wallet before the attack was stopped. The platform successfully compensated all the losses to their clients and tightened security. DAO venture capital fund, as well as Mt. Gox and CoinTrader crypto exchanges, were less lucky – they all went bankrupt after targeted digital assaults. And these are just a few cases of numerous hacker attacks on crypto-related services.
Is safe cloud-based mining possible?
“When creating Hashtoro, a cloud service for mining BTC, ETH, and LTC, we did our best to take into account all possible risks and provide our users with reliable protection”, – comments product director of cloud mining service Hashtoro Alexander Petersons. The platform offers the following features to ensure high-end digital and physical security:
- PCI-DSS certification,
- 256-bit encryption and a privilege system protect user data,
- cold offline purse for fund storage,
- two-factor authorization,
- 48-hour delay of payout,
- regular website and server scans,
- 2-week suspension of all payouts if the client wallet address is changed,
- data centers are based in crypto-loyal European countries.
Hashtoro is PCI-DSS-certified. It means that all the transactions within our system, as well as storage, transfer, and processing of user data, meet the safety standards of the world’s leading payment systems, such as Visa and Mastercard. It uses 256-bit encryption – same as all major banks do – to protect all sensitive client information, including their financial and personal details. This data is only available to certain Hashtoro employees who are authorized to work with it.
Cloud mining service Hashtoro pays special attention to the safety of coin storage and withdrawal. All funds are kept in a cold offline purse, which is more resistant to hacking. This strategy minimizes any the risk of theft and loss. Two-factor authentication adds an additional level of security that ensures that only you can access your account. The service makes payouts within 48 hours of the creation of the withdrawal request, and, as an additional safety measure, all transactions will be suspended for 14 days in case you change the wallet address for payouts.
The platform regularly updates its website and servers and scans them for malware and security vulnerabilities with the latest information security software. And last but not least, It placed its servers in crypto-friendly European countries – Norway and Finland. Hashtoro is very serious about the security of data centers, so it does not disclose its exact location.
End-user security tips
Even if the service you are dealing with is well-protected, some attacks happen on the user’s side. Social engineering and scam emails are two of the most frequent. Here is advice to further protect your crypto savings:
- keep your private keys, logins, and passwords safe,
- be careful with links in emails – hover a mouse over them to see where they lead to,
- use bookmarks to make sure you are on the correct website,
- use a reputable antivirus; keep it updated,
- never store your coins in a hot wallet, go for a cold one,
- make a backup copy of your wallet.
To sum all the aforesaid – safe cloud mining is possible. As the awareness of the need for qualitative, tight security grows, the situation will also improve. If both the company and the end user follow safety measures, then both will get the best possible experience with cloud mining. Mine safe!”