Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

After mostly trading sideways at the end of April 2025, a US-UK trade deal sparked a crypto rally. BTC surged past $100K for the first time since February, but it’s ETH's performance that captured the derivatives market's attention. 

A 23% increase in ETH's spot price led to an inverted term structure and a spike in front-end volatility. The put/call skew for ETH shifted from a bearish bias to a nearly 10% skew toward OTM calls. Other sentiment indicators, such as perp funding rates and futures yield, also supported the rally. In contrast, while BTC's funding rates and skew have increased, its implied volatility remains low at 40%, over 30 points below ETH's 7-day implied volatility.

Please check out the report’s highlights.

ETH’s record performance since 2021 was propelled by positive term structure

ETH has significantly outperformed BTC and the top 10 cryptocurrencies, marking its largest single-day gain since May 2021. The options market has reflected this enthusiasm, with implied volatility for short tenors rising sharply and inverting ETH’s term structure, thus contrasting with BTC's muted, positively sloped structure. The 7-day tenor for ETH is now trading at a 33-point premium over that for BTC. 

While puts dominate BTC's open interest, ETH is seeing the opposite trend. On May 8, 2025, options volumes surged over $120M, more than double the typical monthly volume, with $60M more in calls than puts. ETH now boasts a positive futures curve and funding rates, as well as a strong skew toward OTM calls.

ETH sees exceptionally bullish put/call skew

ETH's substantial outperformance in the current crypto rally has led to bullish sentiment in its derivatives markets. Funding rates have surged, futures yields are strongly positive and the put/call skew has shifted significantly toward OTM calls, now close to 10%. This starkly contrasts with early April, when the skew was 20% toward OTM puts. Although ETH has underperformed (relative to BTC and other "ETH killers"), it has rebounded in this rally, with the ETH/BTC ratio rising after spending most of the year declining.

Open interest for Bitcoin options increased, with implied volatility remaining suppressed

The announcement of the new US administration's first trade deal, nearly 30 days into Trump's 90-day tariff pause, jolted crypto markets, pushing BTC back up above $100K. Surprisingly, implied volatility has remained suppressed, failing to invert BTC's term structure, with front-end volatility trading at around an 18-month low of 35-40%. On May 8, 2025, options volumes surged, with call volume reaching $189M, reversing last week's trend of higher put volumes. Meanwhile, open interest rose steadily to exceed $300M, the highest level this month, but remains significantly larger for puts than for calls despite the price increase.

Advanced

block-scholes-x-bybit-report.jpeg

Bybit X Block Scholes crypto derivatives analytics report (May 9, 2025): Ether’s put/call skew turns remarkably more bullish than Bitcoin’s

This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

sign.png

Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

compliant trading.png

How to trade compliantly and responsibly on Bybit

Discover how DAI evolved into USDS under the Sky protocol—unlocking passive rewards, scalability, and a new era of DeFi with Sky Token Rewards.

In September 2024, MakerDAO, a pioneering 

 (DeFi) protocol, underwent a significant transformation by rebranding itself as 

 (SKY). This rebranding was part of the project's comprehensive strategy to enhance scalability, user engagement and regulatory compliance. The major changes that came with the rebranding include token upgrades, whereby the platform’s stablecoin, Dai, was upgraded to USDS (Sky Dollar) while the 

Let’s take a deeper look at USDS and its role on the Sky platform.

USDS (United States Dollar Sky) is the upgraded version of the Dai stablecoin, launched under the newly rebranded Sky protocol (formerly MakerDAO).

 Like DAI, USDS is a decentralized, overcollateralized stablecoin designed to maintain a 1:1 peg with the US dollar.

However, USDS significantly improves scalability, user incentives and regulatory positioning, making it a next-generation solution for DeFi.

One of the standout features of USDS as a stablecoin is that it creates 

 opportunities for its investors. With USDS, you can access the Sky Savings Rate (SSR) feature, which allows you to participate in the Sky ecosystem's governance by accumulating Sky Token Rewards (STR) (presented in the form of SKY tokens).

SSR also features a variable automated token accumulation feature, whereby you receive 

 to the SSR program. This passive earning potential offers a major advantage for users seeking yield without complicated 

Sky uses a dynamic model that adds USDS to the SSR pool every few seconds. Over time, the value of sUSDS in the particular pool increases. You can then opt to redeem your sUSDS for USDS, and receive the USDS you initially supplied in addition to the USDS equivalent you’ve accumulated.

These rewards serve as an incentive mechanism, enabling users to passively grow their holdings while supporting the health and stability of the Sky ecosystem.

Upgrading from DAI to USDS is straightforward. Users can visit Sky.money and initiate the upgrade directly through a noncustodial, user-controlled process.

The platform provides a simple interface on which users connect their wallets, exchange their existing DAI for an equal amount of USDS and instantly become eligible for yield accumulation and other Sky ecosystem benefits. There are no fees for the upgrade, and users retain full control of their assets at all times.

USDS isn’t just a stablecoin; it’s an evolution of DeFi money. With passive earning through Sky Token Rewards and a smooth, secure upgrade path, USDS sets a new standard for the way decentralized stablecoins can deliver value and financial empowerment to users worldwide.

USDS and DAI are both decentralized stablecoins originally developed under the MakerDAO ecosystem (now Sky). While they share the same core principle — overcollateralization and the maintenance of a 1:1 peg with the US dollar — USDS represents a major evolution of DAI, introducing additional incentives designed to enhance user experience, scalability and regulatory alignment.

DAI has long been a favorite in the DeFi ecosystem, allowing users to generate stablecoins by locking up crypto collateral such as 

. DAI features a savings program, the DAI Savings Rate (DSR), from which people can earn 

 (sDAI). While the DSR program is still running, upgrading to USDS lets you earn two types of rewards through the SSR program: sUSDS tokens and Sky Token Rewards (STRs).

In addition, USDS is well positioned to meet regulatory requirements, aiming for broader mainstream adoption while maintaining decentralization.

Below is a comparison table between DAI and USDS:

USDS is backed by collateral that’s deposited in Sky vaults by borrowers. In return, the reserves for these vaults are backed by three main assets: 

With a market cap of over $8 billion, USDS is the currently third-largest stablecoin after 

 is more complex than that of typical stablecoins, as it includes liquidation mechanisms and a peg-stability module. However, an audit of USDS’s smart contract in September 2024 didn’t report any significant risks with the stablecoin. Notably, S&P Global Ratings 

 of 4 out of 5, indicating constrained ability to maintain its peg under certain conditions. 

​Additionally, the proposal to include a freeze function for USDS, which bestows upon the Sky protocol the power to halt USDS transfers between wallets, has sparked heated discussions within the community, highlighting the ongoing conundrum of balancing security measures with principles of decentralization.

The evolution of DAI to USDS marks a major leap forward for DeFi. By combining DAI's trusted and overcollateralized model with additional passive earning opportunities through Sky Token Rewards, USDS empowers users to enjoy greater financial benefits with less complexity.

The streamlined upgrade process and stronger regulatory positioning set the stage for broader adoption and a more resilient future. As Sky continues to build, USDS represents more than just a stablecoin — it’s the foundation of an open, accessible and more rewarding financial ecosystem for everyone.

usds crypto.png

From DAI to USDS: Unlocking an open Sky for a more rewarding future

Bybit Learn

Blockchain

As crypto continues to grow, it is attracting the eyes of hackers. Can Cryptocurrency still be hacked today? Read on to find out.

Cryptocurrencies have seen enormous growth over the years. As more users have come on board, the number of hacks have increased. This year crypto hacks cost 

. These thefts are especially rampant with crypto bridges, resulting in $1.4 billion taken in 2022 alone.

The largest single hacking incident, in March of this year, was the 

. Earlier this year, even the large crypto exchange Crypto.com was hacked for millions, causing the network to pause withdrawals for over 14 hours.

Hacks have caused investors to not only lose their life savings, but also their trust in cryptocurrencies, which results in potential investors backing away from the industry. This article explains how cryptocurrencies are being hacked today, why it’s important to stay vigilant, and some tried-and-true ways to avoid getting hacked.

 of having to choose two out of three features (decentralization, security and/or scalability) is fundamental to 

. To compensate, the architecture behind modern cryptocurrencies, decentralized applications (DApps) and NFTs has significant built-in security features. Once data blocks have been added to the blockchain database, they’re immutable and cannot be reversed or hacked. Despite this structure, hackers have made off with millions every year because of shortfalls in bridge, protocol and personal security. As hackers take advantage of fringe vulnerabilities in the system and abuse existing smart contracts, users can effectively combat this by keeping themselves safe through secure crypto wallets.

So, are blockchains safe? The short answer is yes. The blockchain itself is secured through cryptographic techniques and consensus mechanisms from network participants. However, losses happen all the time because of the security shortfalls mentioned above.

The Role of Miners in Keeping the Blockchain Secured

 (PoW) blockchains secure from hostile takeovers, spam and attempts to centralize the network. In return, miners are rewarded for contributing their resources. 

On the surface, miners package transactions 

 into candidate blocks. Then each miner uses a computational machine to solve the 

 (for Bitcoin, SHA-256, or Secure Hashing Algorithm 256 bits). Once a hash has been solved and verified, it’s added to the blockchain and the miner receives a reward.

Naturally, blockchains are open to assault from the same miners who secure the network. Using the 

, a group could potentially take over a blockchain if they owned more than 50% of a PoW cryptocurrency. A 51% attack works by overriding the existing network and taking over the set security protocols. Once the attackers control the majority of the 

, they can introduce changes to the blockchain and allow transactions — such as a double spend  —  through majority consensus.

For example, Bitcoin transactions require six confirmations from the network to be processed. An unprocessed transaction could be reversed in a 51% attack in which miners would gain control over coins from unconfirmed transactions. They could then transfer the coins to an address of their choosing. The severity of a 51% attack would depend on what the attackers ultimately decided to do.

Yes — your cryptocurrency can be stolen if you don’t take the necessary steps to secure your coins. Hackers can steal them directly, or use scams to trick you into handing them over. If your 

 aren’t kept safe, it’s possible for a hacker to get into your hot wallet (see 

, below). This can’t happen if you store your coins offline in a cold wallet, such as 

 — one of the best hardware wallets available.

 has improved over the years, but as we see more widespread adoption, crypto hacks are growing. Here are the three most common crypto hacks.

A blockchain bridge allows assets to be sent from one blockchain to another. Users send funds in one asset to the bridge, where the funds are locked into a contract. The user is then issued a 

 — mimicking the characteristics and functions of the target token, once it reaches the target blockchain network.

Bridges have been targeted in the last few years because they often have a central storage point where funds are locked up and used to back the wrapped assets. Whether they’re held by a centralized entity or locked in a smart contract, current bridge designs have yet to solve the challenges among blockchain bridges.

Some bridges are vulnerable because of their poor model. For example, the 

 was hacked for $100 million after attackers compromised two out of five accounts and approved the withdrawal of funds from Harmony to Ethereum.

Wormhole, one of the largest cross-chain bridges, was hacked for $320 million. The hacker managed to mint Wrapped Ethereum (WETH) on 

without putting up the necessary collateral on Ethereum. Fortunately, Jump Trading stepped in to provide the same amount of ETH, saving protocols and users from huge losses.

 to manage your own cryptocurrencies. The keys are required to access your crypto deposits. You have full control over them, and keeping them safe is your most important task. 

. Cold wallets like hardware wallets from Trezor and Ledger are the most secure storage option because it’s not connected to the internet. It's untouchable except during short connection periods for online transactions. 

A hot wallet is connected to the internet and, therefore, more vulnerable to attacks. While most users prefer hot wallets for their convenience, hackers can directly interact with a hot wallet using malware, phishing and other hacking strategies. Recently, over 8,000 hot wallets were hacked and drained of funds, unbeknownst to the users. The attack happened on hot wallets Phantom, Slope and Trust Wallet, and amounted to $5 million worth of native Solana tokens. According to a 

, engineers discovered the bug was not on Solana, but in the software of several hot wallets.

Other hot wallets include desktop wallets (Coinbase Wallet), mobile wallets (Trust Wallet) and browser wallets (MetaMask). These are usually third-party applications that could have security vulnerabilities, which might allow hackers to access your private keys. In the case of MetaMask, there are bogus sites that can induce you to input your seed phrase — and then the scammers immediately convert and drain your funds.

A crypto exchange is a platform where users buy and sell digital assets using 

. The exchanges provide users with custodial wallets and other services, which include managing user accounts and their private keys. Since only a few private keys hold large funds, the wallets become targets for hackers.

Earlier this year, one of the biggest crypto exchanges, Crypto.com,  was hit with a $35 million hack that affected over 400 users. The exchange initially found that a small number of users had unauthorized crypto withdrawals from their accounts. This turned into a large number as withdrawals were being approved without using 2FA (two-factor authorization). Crypto.com halted withdrawals for 14 hours and fully reimbursed its affected users.

Following the Solana wallet hack in the same week, a hacker stole $4.8 million worth of cryptocurrencies from the ZB.com exchange (whose homepage states, “The World’s Most Secure Digital Asset Exchange” — so yes, it can happen anywhere). Unfortunately, ZB.com wasn’t fast enough to suspend withdrawals, and the funds were transferred from the exchange wallet to an unknown address thought to belong to the hacker.

 (CeFi) requires a central entity to oversee transactions, while decentralized finance (DeFi) allows users to transact with each other using smart contracts. Both CeFi and DeFi have their benefits, although hacks happen to users on both platforms. In terms of crypto hacks, one advantage of using a CeFi platform is the possibility of recovering your assets, usually at the expense of the platform's insurance fund. When compared to a similar hack in DeFi, the chances of recovery are close to zero, as assets are managed by the individual.

Many crypto exchanges have been targeted over the years, and although users are usually reimbursed, it isn't always the case. Some exchanges don’t have enough to pay out their customers. Despite this predicament, people still want to invest in cryptocurrencies because of their potential to skyrocket in value. If you’re considering adding crypto to your portfolio, it’s worth noting the safest crypto exchanges.

Bybit is the best P2P crypto exchange around the world for trading with leverage. The platform facilitates the buying and selling of cryptocurrencies at an optimal, agreed-upon price, and supports more than 80 types of payment methods. Bybit’s 

 process is straightforward and allows users to make unlimited deposits, withdrawals and trades by complying with Bybit’s KYC.

Considered one of the safest crypto exchanges, Binance allows users to purchase almost 60 types of cryptocurrencies, including Litecoin, Chainlink and Dogecoin. Trading P2P on Binance doesn’t incur any taker fees. However, the P2P altcoin exchange does charge a maker fee of up to 0.35%. That aside, P2P advocates everywhere use it to buy and sell a host of altcoins.

Huobi is among Asia’s best-known crypto exchanges, offering one of the largest platforms for crypto trading since 2013. Customer service is surprisingly quick and responsive, which is comforting in a volatile marketplace. On this P2P crypto exchange, neither buyers nor sellers pay transaction fees, making it extremely competitive against other first-rate P2P crypto exchanges.

Another one of the safest crypto exchanges in more than 200 countries, OKX supports advanced trading for experienced crypto traders. It also offers more than 100 currency pairs for Tether, Bitcoin and Ether, making it a favorite P2P exchange for international users.

KuCoin is one of the safest crypto exchanges for non-American traders who are ready for an advanced trading platform with more features. Traders can also earn interest on their crypto while it sits in their wallets, making it one of the most popular P2P crypto exchanges on the market. KuCoin claims that one in four crypto users hold some assets on its platform, which means there’s a big pool of buyers and sellers to trade with for added liquidity. Transfer fees depend on the currency and on which third-party app is used.

With its peer-to-peer network, Bitcoin is completely open and decentralized. Thousands of nodes in every corner of the globe communicate with each other on transactions and blocks.  As the Bitcoin network has grown and the price has risen, so has the hash rate of Bitcoin miners. This has made 51% attacks increasingly harder and more expensive to execute over the years, resulting in Bitcoin becoming more secure. If an attack were to happen, it would crash Bitcoin’s price, devaluing any Bitcoin that was stolen.

Bitcoin can be stolen if a hacker gains access to your wallet. Hackers can accomplish this in one of two ways: 1) Directly, through email 

 that give hackers access to your wallet, enabling them to transfer your Bitcoin into theirs. 2) The other way is through crypto exchanges, where hackers steal directly from custodial wallets once they gain access to the private keys.

Can Bitcoin Be Hacked by Quantum Computers?

A popular theory about the possibility of Bitcoin getting hacked involves the implementation of quantum computers. Quantum computers can perform computation with extraordinary efficiency and speed. While scientists have theorized about the possibilities of quantum computers, 

Quantum computers could dominate any crypto blockchain, and would potentially have the power to execute a 51% attack on coins such as Bitcoin. Applying their force, they could also steal the private keys of wallet addresses and confiscate any and all Bitcoin.

Bitcoin, however, is actually one of the safer systems as compared to bank accounts or credit cards. If quantum computers are indeed implemented, the entire financial system will be at risk.

To date, the biggest crypto hack happened in March 2022 when the Ronin Bridge of 

, the popular play-to-earn game, was targeted. The hackers stole a whopping $615 million worth of ETH and USDC, and although a small percentage of it was recovered within the month, the Ronin Bridge hack remains the biggest in history. The 

 hack is a close second, with $611 million stolen in August 2021.

 from being stolen. As mentioned above, the least secure wallets are hot custodial wallets because of their constant connection to the internet, and because you don't have access to your private keys. Never store your keys on a device with a connection that’s constantly on — always hold onto them. Hot custodial wallets can be hacked easily and used to access your keys.

The most secure wallets are noncustodial hardware wallets, 

. Store your private keys for these wallets by writing them down on a piece of paper and keeping the paper in a safe, also known as a paper wallet, or by using a device that uses extra encryption. Since paper wallets are easily damaged, the first method should only be temporary.

Your private keys should always be held in cold storage without a wired or wireless connection. If you want to use your 

, transfer only the keys you need for that transaction to your hot wallet, conduct the transaction, then remove the keys from the hot wallet immediately. Finally, never share your private keys with anyone if you’re uncomfortable with the risks.

A simple way to know if your wallet has been hacked is to look for any unauthorized transactions. Should this happen, it’s likely someone has gained access to your wallet.

If your wallet has been hacked, immediately create a new wallet and transfer any existing funds out of your current wallet. Be sure to check your device for viruses, such as malware, beforehand to avoid having your new wallet get hacked.

If you’re using a centralized exchange, change your login details, and ensure that you have two-factor authentication turned on. Notify the crypto exchange as soon as possible for help. They might be able to freeze your funds before they’re drained from the exchange, or offer reimbursement while they work with authorities to resolve the issue.

What’s the Safest Cold Wallet for Your Crypto Storage?

Hardware wallets are a form of cold wallets that offer the safest crypto storage. They let you keep your crypto wallet and your seed phrase offline when you don't want to trade or make a transfer. While your hardware wallet is offline, a hacker or malware still could seize the wallet.

Popular wallets such as Ledger Nano X, Trezor Model T and KeepKey allow you to authorize transactions directly from the physical device. While you do need to connect your device to the internet to trade crypto, your private keys will never be sent over. Even if the connected device or DApp is compromised, your wallet remains secure.

What’s the Least Safe Place to Store Your Crypto?

The internet is the least safe place to store your crypto. It’s possible for hackers to break into 

 on the internet. For example, someone who keeps their private keys on a cloud storage account makes the process of getting into their wallet too easy, as the only line of security for hackers to get past would be their iCloud password, especially if it’s not strong.

Also, avoid keeping your private keys on computers or phones in case of viruses, such as malware, which can pull information from your devices — even if they’re not connected to the internet.

Cryptocurrency and DeFi protocols continue to grow, and users who deposit money into crypto are growing in numbers as well. As the underlying technology of blockchains is safe and almost impossible to attack, hackers look to exploit funds directly from protocols or users themselves. Therefore, it’s important to protect your funds so you can enjoy crypto protocols with peace of mind.

Crypto Hacks: Can Cryptocurrencies Like Bitcoin Be Hacked?

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Register now and get 10 points

Write/Reply Comments (0/5)

Publish an Article (0/5)

Share an Article on Social Media (0/5)

Like an Article (0/5)

Read an Article (0/5)

Weekly Leaderboard