Purchasing cryptocurrencies involves some risks. Investors have shied away from these digital assets due to their volatility, lack of regulation, and several successful hacking instances.
For instance, according to a research from Chainalysis, cross-chain bridge attacks have cost US$2 billion in losses this year, or 69% of all cryptocurrency stolen.
Define cross-chain bridges now. These blockchain bridges essentially make it possible to transfer cryptocurrency between blockchain networks. Blockchain networks are like silos in that they don't interact with one another.
These bridges are targeted by hackers because they serve as a central location for storing cryptocurrency.
Several bitcoin exchanges have been hacked in the last ten years. Such cyber-attacks have, however, decreased as a result of improved security measures.
In addition to security concerns, the macroeconomic environment is still very difficult, causing the ongoing sell-off to accelerate
Bitcoin still has the first-mover benefit
A great long-term investment is EthereumWith a $228 billion market cap, Ethereum is the second-largest cryptocurrency in the world.