Cryptocurrencies: after the spectacular Binance hack, how to continue investing in bitcoin and Ethereum without exposing your savings to cyberattacks

It is not uncommon to see cryptocurrencies at the origin of scams of all kinds. But what happened at the end of October to the Binance platform, the world leader in cryptoasset exchanges, is a first in its scale: the establishment suffered a cyberattack valued at $6.3 billion. Enough to send shivers down the spines of aficionados of this volatile investment.

However, there are solutions for investing in this asset without taking too much risk – apart from, of course, a loss of value. Firstly, Europe has developed strict approval for specialized platforms, called Mica (Markets in crypto-assets). This requires a series of precise information, customer identity checks, transfer traceability rules and compliance with a minimum level of own funds.

If these usual precautions do not exclude all accidents, they have the merit of having formalized a rather demanding framework, keeping away less serious actors. The losses would amount to 6.3 billion dollars: Binance victim of a cyberattack, the world of cryptocurrencies in chaosCold wallet or ETNFor savers who already have a wallet, there is also a fairly secure way to keep their cryptos secure: the cold wallet, a small physical device which stores (off the internet) the passwords proving the holding of cryptos. To do this, you must have selected from the first use a series of 12 to 24 random words, a secret code that you should not write on your smartphone or in an email to remember it, but on a non-traceable sheet of paper.

This way, even if the cold wallet is lost or stolen, no one can have access to the cryptocurrencies. With AI, “an unprecedented increase in the number of cyber incidents”: companies are rushing to strengthen their defense systems Finally, there is another very safe way to position yourself: investing in an ETN (Exchange traded note). A sort of ETF (products replicating indices), this security has the same particularities: it is permanently listed, has low fees and follows the performance of one or more cryptocurrencies or an index.

Its only risk: a loss of value. Available via a securities account, this type of investment is offered by many management companies and online banks (BoursoBank, Bourse Direct, VanEck, BlackRock, etc.). Sign of the craze for cryptoassets.

Machine-translated from French