Without a doubt, the last year has been one of the best years for cryptocurrency investments. Bitcoin price has climbed from $5,288 in mid-March to nearly $30,000 by the end of the year. It broke that barrier in early 2021, going far beyond even that, and hitting a new all-time high at nearly $42k.
There is no other asset in the entire financial industry that can even remotely compare with this kind of performance, and so it is hardly surprising that millions from all over the world rushed to join the crypto industry.
While this has been great for crypto adoption — Bitcoin dominating headlines, being mentioned in the news, attracting institutional investors, and more — there is one problem with it all, and it lies with bad actors.
Where there is money, there are those trying to take it for themselves. This is simply the way of the world, as greed is not a disease that can be cured, and many would rather take a shortcut to fortune than to work for years to develop skills and gather knowledge to make a fortune on their own.
Hackers, scammers, and other similar types have been attracted to the crypto industry like moths to a flame, and the brighter the flame burns — the more of them will approach to check it out.
Bitcoin hitting $41.8k is a bright flame, indeed, and anyone involved with the coin is in danger of having it stolen, or being tricked into giving it away.
Digital asset theft to skyrocket in 2021
Security experts, analysts, and even the authorities all agree — the rise in crypto fraud has been rapid, and it is only going to get worse. A few weeks ago, in the final days of 2020, blockchain analytics firm CipherTrace stated that hacks on DeFi companies represented 21% of total theft volume for the entire year.
This is a massive rise from the volumes seen in the year before, which were considered negligible. Russian cybersecurity firm Kaspersky warned that Bitcoin theft will explode in 2021 in a similar manner.
This is why it is more important than ever to insure your digital wealth, and protect yourself from the worst-case scenario, especially since experts believe that the worst has yet to come.