You can agree that ensuring online security has never been as necessary as in 2025. And believe it or not, experts claim that in each of the four years since 2018, over a billion dollars worth of crypto has been stolen. 2024 was something else as this figure rose to $2.2 billion, a year-over-year increase of 21.07%. You can imagine what things might be like in 2025 now that more attacks target this sector.
Without a shadow of a doubt, as the debate around crypto security soars, the prices of currencies can be affected. Let’s consider the Bitcoin currency, for instance. If investors perceive that crypto exchanges are paying more attention to security, you can be sure that this might result in new Bitcoin price trends, as more investors might be encouraged to join the sector. Remember, online security can encourage trust and inspire more people to invest. And to learn more about how crypto exchanges are meeting this need for safety, read on.
Why can’t we ignore security in this sector?
Already, in countries like the US, about 63% of individuals claim to have little to zero confidence in the current ways of investing, trading and using cryptocurrencies, saying that they aren’t reliable and safe. Of this number, 30% confirm that they aren’t confident at all, with another third claiming not to be very confident. This means that for an exchange to appeal to such an audience, it will need to do a lot.
Plus, more people are joining the industry, and many businesses are opening up to crypto transactions. In fact, a recent Exploding Topics report noted that more than one billion people use cryptocurrencies worldwide. This figure might increase significantly in the coming days, especially now that Donald Trump will rule the US for the next few years. As a result of this growth, the industry has become a prime target of attacks; thus, there is a need to ensure security.
Given that almost everyone is becoming conscious of their online safety, paying attention to it can really be a good competitive strategy. Actually, looking at the broader e-commerce, you may be surprised to learn that about 81% of consumers want to trust a brand before transacting with it. It’s the same thing in the crypto industry, and paying attention to online security can help improve brand trust.
But you must never forget that recovering from a cyberattack can be very expensive. Besides incurring financial losses, you might injure your reputation. According to IBM, you might have to spend up to $4.88 million to get back on your feet again, which is not something any crypto exchange is willing to incur. With all these said, let’s now look at how these platforms can enhance security in 2025.
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Measures for improving crypto security
The power of 2FA
Well, as simple as it may sound, 2FA can be a very powerful tool to improve security. In fact, several studies reveal that it can minimize exposure to up to 99.9% of automated attacks and up to 96% of phishing attacks. This is good news for crypto exchanges since phishing is one of the most common attacks in the sector.
Just in 2024, it emerged as the primary cause of financial losses, accounting for more than one billion dollars worth of crypto across 296 incidents. And among these events, three were responsible for losses of over $100 million each. 2FA reduces exposure to these kinds of attacks by adding an extra layer of security that prevents further unauthorized access.
The role of multi-signature wallets
It’s no surprise that the multi-signature wallet market size has been growing at an annual rate of about 25%. Unlike traditional wallets, these require several private keys to complete transactions, reducing the chances of theft and unwanted access. On top of that, they allow for customizable signatory requirements where users can configure them to require a certain number of signatures for the entire set of keys.
These wallets also allow you to control who accesses and manages funds, which can be ideal for organizations requiring multiple stakeholders to consent to transactions before execution. This also increases transparency, which is crucial for auditing and accountability. And since some of these wallets allow integration with smart contracts, users can enjoy more security and control.
Cold Crypto storage solutions
More individuals are using cold storage solutions, explaining why Cognitive Market Research thinks their market size could grow by a CAGR of 9.8% within the next few years. For those planning to hold their BTC for the long term, this is definitely the way to go. Cold storage keeps private keys offline, making them harder to steal.
There are more ways exchanges are strengthening their security efforts, including:
- Performing regular security audits and penetration testing to detect vulnerabilities
- Providing useful information to users about best security practices
- Taking advantage of modern technologies like AI and so on
Final thoughts
There’s no escaping the fact that online security has become a crucial discussion in our contemporary world. Just a slight mistake could cost you millions of dollars, from recovering from breaches to reassuring customers. That’s why you can’t afford to turn a blind eye to your online safety.
As such, exchanges are taking advantage of technologies like AI and 2FA to stay ahead. Multi-sig wallets also come in handy by requiring multiple private keys before transaction authorization. And as crypto attacks increase, exchanges will continue adopting more innovative ways of improving safety to ensure long-term survival.
