Is Your Crypto Wallet SAFE? This Report Will SHOCK YOU!!

Is your crypto Wallet safe recently a Security firm published a report which Found that only 6 out of 45 wallets Analyzed had undergone penetration Testing meaning it's possible that 39 Are vulnerable to exploits and hacks This is a sobering finding considering We've seen multiple crypto wallets Exploited and hacked over the last year Including Solana's Phantom wallet the Atomic wallet and possibly even metamask That's why today we're going to Summarize this report reveal which Wallets are the safest and tell you how You can protect yourself against hacks And exploits this is a video you cannot Miss The report will be summarizing today is Titled quote crypto wallet security Rating report key insights and findings It was written by CER live a crypto Security data aggregator created by Hacken a crypto security firm the report Was published in July and we'll leave a Link to it in the description now it Begins with a few highlights The first is that open sourcing the code To crypto wallets does not guarantee Security the second is that most crypto Wallets skip doing Audits and instead Offer bug bounties The third is that Hardware wallets do Not improve the security of the software That said the authors do acknowledge

That Hardware wallets significantly Reduce the risk of losing funds if there Is a hack or exploit of the underlying Software that's simply because any Crypto you keep in a hardware wallet Cannot be stolen if it's not plugged Into your computer or connected to the Internet and note that we have the Biggest discounts on the best hardware Wallets in the description I digress now The final highlight is that larger Crypto wallet companies invest more in Security but some don't seem to invest As much as they should the result is That it encourages hackers and Exploiters to find vulnerabilities and Drain user funds fortunately or Unfortunately hackers and exploiters Have more lucrative options defy being The elephant in the room Now the first part of the report Explains the importance of crypto Wallets the authors explained that Crypto wallets are required for Exploring quote every crypto Rabbit Hole They discuss how it's important for Crypto wallets to have both extensive Functionality and usability while Preserving security Now given these facts the authors Concluded that doing a comprehensive Security assessment of some of the most Popular crypto wallets was warranted What's awesome is that they provide a

Detailed methodology of how they Assessed each wallet and we'll leave a Link to that in the description too Naturally the authors ranked crypto Wallets on a scale of 1 to 100. as You'll soon see no crypto wallet had a Perfect score and the resulting rankings Don't seem to be accurate at first Glance Now this is likely a consequence of the Author's methodology but we'll come back To all of that later Now in the second part of the report the Authors provide an overview of the Crypto wallet landscape they start by Stating the obvious quote not all Wallets are made equal again this is Because different wallets often provide Different functionality and therefore Vary in importance and complexity for The sake of the study the authors put Crypto wallets into three logical groups Desktop wallets mobile wallets and Extension wallets they explained that They wanted to examine web wallets as Well but couldn't gather enough data Oddly enough they don't explain why they Emitted Hardware wallets too In any case they then briefly explain The pros and cons of each of the three Wallet types they analyzed and then Explain that their methodology focused On four key areas Audits and penetration testing bug

Bounties built-in security features and Past incidents of hacks or exploits Desktop wallets scored 48 out of 100 Mobile wallets scored 51 out of 100 and Extension wallets scored 58 out of 100. The authors revealed that this is Because desktop wallets and mobile Wallets undergo frequent updates which Invalidate previous security tests by Contrast extension wallets do not Undergo as many upgrades and invest a Lot more in security compared to their Peers as a result metamask has the Highest ranking of any wallet and Because the authors included deployments Across different browsers and devices it Holds the top four spots The authors highlight the fact that Wallets can improve their scores by Undergoing regular Audits and Penetration tests which would be very Pricey for desktop and mobile wallets it Would simultaneously be very profitable For crypto security firms who provide These services like for instance hacken Hmm Now to underscore their point the Authors briefly discuss the recent Atomic wallet hack they explain that Anywhere between 35 and 100 million Dollars of crypto were stolen affecting Roughly one percent of active user Balances interestingly they note that Most of the crypto that was stolen was

TRON based usdt Regardless the authors admit that it's Still not clear what caused the atomic Wallet hack but note that another crypto Security firm called least Authority had Identified vulnerabilities in atomic Wallet as far back as January last year It's believed that Atomic wallet did not Address these vulnerabilities and these Vulnerabilities are why Atomic wallet Only scored 41 out of 100 under the Author's methodology this score dropped To 31 out of 100 after the exploit to Put things into perspective the authors Provide a list of mobile wallets with Similar functionality and downloads but With much higher security scores they Then reveal another reason why extension Wallets like metamask have such a high Ranking the number of downloads is Highly correlated to the level of Security testing in other words the more Popular the wallet the more security Measures it tends to take Atomic wallet Is one of the exceptions note that you Can learn more about what happened with Atomic wallet using the link in the Description Anyways in the fourth part of the report The authors compare open and closed Source wallets they start by explaining That their definition of Open Source Means that the quote major part of its Cryptography and Key Management are

Available to the public anything less is Considered partial What's strange is that the authors found That there aren't significant security Differences between fully open source And partially open source crypto wallets In fact they argue that fully open Source wallets have a quote considerably Higher risk of getting hacked which is a Very surprising finding now they explain That this is because the five fully open Sourced wallets they analyzed had Experienced quote security incidents While none of the partially open source Wallets they analyzed had What's bizarre is that this seems to Conflict with another of their findings Quote open source wallets showed an Average incident rate of 13.87 while Closed Source wallets had a slightly Higher incident rate with an average of 18.48 percent Note that it's not clear how they found This figure especially since they just Noted that no closed Source wallets had Any security incidents Anywho the fifth part of the report Pertains to bug bounties now for context A bug Bounty is when a crypto project or Company offers money to any developer Who can find a problem in their code the Authors note that there is Nuance here Bug bounties run by Third parties tend To be more effective case in point four

Of the nine crypto wallets that ran Their own bug Bounty experienced a Security incident whereas only one of The 14 crypto wallets that ran a Third-party bug Bounty experienced an Incident of course third-party bug Bounties are something crypto security Firms like hacken can provide In the sixth part of the report the Authors unpack the importance of Hardware wallets they start by saying That Hardware wallets provide an Additional security layer to the Underlying software and they repeat what I mentioned earlier Hardware wallets Keep your private Keys offline when Unplugged Even so the authors found that software Wallets which offer Hardware Compatibility are only marginally safer Than software wallets without this Function around 14 of Hardware Compatible software wallets experience Security instance compared to around 19 Of software wallets without this Function However the stats look very different When the authors analyzed the amount of Assets lost as a result of the security Instance Less than five percent of software Wallets with Hardware compatibility saw Users lose their funds compared to Almost 17 of software wallets without

This functionality in other words a Hardware wallet doesn't guarantee that The wallet won't be hacked or exploited But it almost guarantees that you won't Lose any of your crypto either hack or Exploit does occur this is again because Hardware wallets isolate your private Keys making it impossible for anyone to Steal your crypto if you haven't got a Hardware wallet yet remember that we Have the biggest discounts on the best Ones down in the description Now in the seventh part of the report The authors analyze the different Security practices of different crypto Wallets they start by saying or rather Alleging that desktop wallets and Extension wallets do not give enough Information about crypto transactions Specifically when sending them they Argue that these wallets should include Additional features such as allowing Users to customize how much of their Funds the wallet is allowed to spend To be fair this is something that some Crypto wallets have started doing Notably metamask this is probably yet Another reason why it occupies the top Spot The authors also argue that all crypto Wallets should essentially force their Users to write down their private seed Before using the wallet they note that Almost half of the wallet stay analyzed

Do not require this presumably for Reasons related to user experience the Authors basically say no excuses Similarly just over half of the wallets The authors analyzed provide Hardware Wallet support the authors believe that Hardware wallet compatibility should be Universal however they simultaneously Acknowledge that increasing wallet Features inevitably increases the chance Of a hack or an exploit and this ties Into the eighth part of the report and That's whether additional wallet Features and functionalities affect Security the authors start by saying That most crypto wallets provide Cross-chain swapping functionality What's fascinating is that extension Wallets generally lack this Functionality they also note that There's a surprising lack of support for Cross-chain Bridges something they Seemingly take issue with because quote By now it is obvious that the future of Crypto is multi-chain They acknowledge that this lack of Integration is likely due to all the Bridge exploits we've seen as for the Absence of cross-chain swaps on Extension wallets this could be a Consequence of the fact that most Extension wallets focus on single chains Or single families of chains metamask For evm chains for example

This is likely to change as more wallets Enable multi-chain functionality like Phantom Regarding crypto to Fiat ramps the Authors rightfully take issue with the Fact that it's extremely easy to convert Your Fiat to crypto in most wallets but Extremely difficult to convert that Crypto back to Fiat in the same wallet They believe this is done due to Regulatory reasons and they're probably Right After glossing over nft functionality The authors examine staking Functionality They stress that there are two types of Staking supported by crypto wallets External staking you choose which Validator you stake with or internal Staking the wallet chooses the validator Obviously internal staking is often much Riskier now considering that the highest Ranked wallets have all these features The authors seem to conclude that the Number of features isn't all that Correlated to a lack of security this Could be explained by the fact that Feature-rich wallets are the largest and Therefore have the best security Practices as noted earlier as for the Actual conclusion the authors reiterate That crypto wallet developers need to Run Audits and penetration testing on a Regular basis and consider commissioning

Third parties for bug bounties as for Crypto wallet users the authors Recommend they do three things First assess the track record of the Crypto wallet you're considering or Using If you notice there's a history of Security incidents then it may not be The safest option second check to see if There are any audits penetration testing Or third-party bug Bounties in this case The more the merrier What's fascinating is that the authors Seem to imply that the results of these Audits penetration tests or third-party Bug bounties aren't necessarily that Important rather the fact that a crypto Wallet is spending time and money on Security should be taken as a sign that They're taking it seriously the authors Even reserve a recommendation for Hardware wallet users and that's to Check out their ranking of software Wallets and find the most secure ones That offer Hardware wallet compatibility They reiterate that the most popular Crypto wallets tend to be the most Secure but there are exceptions All of which brings me to the big Question and that's how you can protect Yourself from crypto wallet exploits and Hacks well the first step is to take all Audits penetration tests bug bounties And other security measures with a grain

Of salt as defy developer Andre cronier Famously said they aren't bulletproof Take a second to consider that a D5 Protocol that had been audited by hacken Was subsequently exploited late last Year in hackens defense the exploit Happened after the D5 protocol had made Some changes hence hackens emphasis on Doing security testing after every Change in their report Per hacken's own explanation of the Incident however the D5 protocol in Question had in fact run another audit After making these changes and yet it Was still exploited If you're interested in what exactly Happened there we'll leave a link to Hacken's post-mortem in the description And this relates to the second step and That's to remember that all these Security ratings and rankings aren't Necessarily correct even if the security Firm behind them is legit such as hacken Besides potential problems with their Methodologies crypto security firms can And often do have biases this is a Consequence of the fact that crypto Security firms are paid by the crypto Projects and protocols they ordered this Can result in bias security testing and It's why some crypto security firms are Less reputable than others obviously It's not always easy to tell if a crypto Security firm is reputable or not now

The third step is to remember that even The best crypto wallets may not have Bulletproof Security in the introduction I mentioned that even metamask had Allegedly suffered an exploit this is a Reference to an incident from this April Metamask denied the issue was on their End but said the issue was never Identified That's why the fourth step is the most Important and that's to make sure that You're always keeping any crypto you're Not actively trading on a hardware Wallet of some kind again this makes it Next to impossible for your crypto to be Stolen even if the underlying software Is hacked or exploited the fifth step is Similarly Paramount and that's to make Sure you don't give unnecessary Authorization to apps and dapps and Don't accidentally give authorization to Malicious apps and dabs this pertains More to browser extension wallets always Revoke permissions when you're not using An app or dab and the final step is Ongoing and that's to stay educated and Informed the fact that even the most Secure and popular crypto wallets aren't Perfect mean that you constantly need to Keep up with the crypto news I can't Tell you the number of times that Staying up to speed saved my crypto Portfolio and luckily for you the coin Bureau has got you covered when it comes

To these important updates all you need To do is follow us on Twitter and join Our telegram group both provide Real-time crypto coverage and links to Both will be down in the description And that's all for today's video folks If you learned something new let me know By Smashing that like button if you want To make sure you keep learning subscribe To the channel and ping that Notification Bell if you want to help Others learn take a second to share this Video with those who need to see it now Not to flog a dead horse but the coin Bureau deals page has the biggest Discounts on the best hardware wallet It's also got up to forty thousand Dollars of bonuses airdrops and Incentives on the best cryptocurrency Exchanges so you can save money while Stacking SATs the link is in the Description thank you all so much for Watching and I'll see you next time so Till then my crypto friends Thank you