Enough is Enough: An End to Crypto Exchange Hacks
Even if you’re completely new to the crypto ecosystem, you’re probably well aware of the recent hack on Binance. Nearly $42.8 million was stolen from Binance’s “hot wallets”, and thousands of traders were left with no ability to deposit or withdraw funds for days.
What’s the difference between a “hot” or a “cold” wallet? At a high-level, hot wallets are connected to the internet, while cold wallets are kept completely offline. Being connected to the internet introduces more attack vectors for hackers, which is one of the many reason why crypto exchange hacks have been so prevalent. We’ve already seen a staggering $350 million in hacks in 2019 alone.
So why aren’t all of your crypto assets stored in cold storage?
Traders want to act on market movements as quickly as possible. Therefore, many traders keep some portion of funds on centralized exchanges for ease of trading, where they’re susceptible to hacks. This is because it takes time and costs fees to transfer funds into and out of exchanges.
It’s important to note that while your tokens are stored with a third party, you do not technically own them since you’re not in full control of your assets.
To avoid being hacked, the only way to hold and exchange your assets is to use cold storage wallets and Decentralized Exchanges (DEXs). Always BYOW (Bring Your Own Wallet).
DEXs have historically been difficult to use. There’s technical complexities to using them — such as wrapping Ether, or acquiring DEX specific tokens required to trade. Not to mention, DEX interfaces are usually fairly complicated and have a lot going on.
You should never need to compromise your assets or user experience while trading.
That’s why Totle exists today.
Totle allows you to trade directly from your wallet, without ever depositing funds with another party. This means you can trade while keeping full control over your assets. You don’t need to worry about acquiring any DEX specific tokens or wrapping Ether — we obfuscate all the technical complexities away from our users.
That’s decentralized trading — the way it should be.