Bitfinex hacked

Tradingplatform Bitfinex hacked, big amount of bitcoins stolen, is it possible to invest in Bitcoin in a secure way?

bitfinex hacked
Trading platform Bitfinex is hacked recently, is it still possible to invest in Bitcoin in a secure way?

Today, storing your bitcoins securely became more important. When I checked the bitcoin price after I woke up this morning, I was shocked for a moment. While investigating the reasons why the price made a huge drop, I found the first articles about almost 120.000 stolen bitcoins from trading platform Bitfinex in the news.

Some investors lost their bitcoins in this hack, but all investors lost by the price drop

The previous crash of the bitcoin price was also caused by a big theft at Mt. Gox, but this time I expect the drop will not be so deep. The first argument for this is the fact that the platform and the amount of stolen bitcoins as well is much smaller compared to the total market. Furthermore, the last crash was on the top of a big bubble, so there was a lot of air in the market.

Investing in Bitcoin in a secure way is possible!

Many investors now will question whether it is possible to invest in Bitcoin in a safe way. My answer is YES: When you keep your bitcoins yourself on a hardware wallet and guaranty that nobody gets acces to your recovery seeds or pincode.

The Bitcoin network is never hacked and probably this will never happen. This means all you have to do is protecting your private keys against hackers and thieves.

You can decide about your risk / reward ratio yourself when you invest in Bitcoin

I’ve got some bitcoins stored at Bitfinex too, because I can lend them to traders here and get some good interest. I don’t know yet if they are stolen, and in that case I don’t know if I will ever get them back. The platform is not accessible at the moment, so future will learn.

Most of my bitcoins are stored on a hardware wallet (Trezor), so these are safe, but the only source of gain here is the price advance. That’s the reason a part of my bitcoins are invested at Bitfinex, but at lending platforms like BTCjam as well. The last time I got great interest here additional to the price advance.

Result: You decide about security yourself

So is it possible to invest in Bitcoin in a secure way? You can choose between secure, unhackable options like a hardware wallet and less secure options giving you a great extra return if everything goes well. You can also spread between these options, it’s all your choice!

If I had rejected the options to earn interest and stored all my bitcoins on a hardware wallet, I shouldn’t loose anything today, exempt the loss in price, but this is only temporary.

Don’t let yourself scare away from Bitcoin because of this hack, investing in Bitcoin in a secure way is really possible and the drop in price is probably only temporary!


Bitfinex hacked
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5 thoughts on “Bitfinex hacked”

  1. The latest news is that Bitfinex will go online soon, so the customers can check their account whether their bitcoins are stolen or not. In the first instance there will be no possibility to transfer funds yet.

  2. Bitfinex announced that about 36% of the total deposits are lost after the recent hack. The damage will be spread between all the accounts, so everyone with an account will loose 36%. For the lost coins the account owners will receive BFX tokens. This tokens will be used to try to compensate everyone for their lost. They will use future profits to do this.

  3. Bitfinex reopened, but for now it is read only. Now you can check you account and later this week trading will be enabled again. The coins you had in your previous account will be 36% less and in return you will see BFX tokens. One BFX represent 1 stolen USD.

  4. Hardware wallet provider Keepkey signed for a cooperation with blockchain exchange Shapeshift to implement their API in the hardware wallet. This will make the Keepkey wallet the first secure crypto exchange soon!

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