South Korean Bitcoin Investors are in the know about the dangers of keeping their digital currencies with local crypto exchanges and are demanding for Bitcoin Hardware Wallets. This new trend has been documented by Kim In-soon, a security-focused researcher for South Korea’s ETNews.
It is a well-known fact that crypto exchanges are by no means a secure institution. In two years, the majority of all exchanges including the country’s largest crypto-exchange Bithumb has suffered from some form of data breaches as well as hacking attempts. Even in places like the US and Europe, security issues aren’t any better.
A group of administrators centrally manages most of the exchanges through their servers, databases, and infrastructures. This allows the system to become vulnerable to a variety of cyber attacks because of its reliance on a single point of failure. Hackers can easily break into the system, steal user data along with sensitive financial information, and not to mention, relocate user funds, all within a matter of minutes.
To avoid this high-level security threat, Bitcoin investors have access to alternatives such as non-custodial wallets and web-based wallets. However, since both these solution is a version of centralized wallets and requires connection to the main server, they too can become victims of DDoS attacks or server outages which can cause considerable inconvenience.
As a result, the safest and most preferable form of storing one’s cryptocurrency is through hardware wallets which do not share any limitations and weakness discussed earlier. In the past few years, South Korea has had many cryptocurrency hardware wallets target its local market, including Cryptowallet, KeyPair, and TouchxWallet. At present, owing to the ever-increasing demand for the product, even the largest cryptocurrency hardware wallet manufacturers, Ledger has found its way into the South Korean Market.
Now, in the wake of the security issues that follows cryptocurrencies, the fact that investors are not fleeing but instead contemplating on security measure is solid evidence for the investor’s optimism and inclination towards decentralized currency. This is undoubtedly a positive step for the crypto market.