The bitcoin market is a hive of activity all of the time. The exchanges are constantly busy, with enormous money changing hands regularly. These platforms accept both fiat currency and cryptocurrency as payment. Because the blockchain is a decentralized version that allows users to stay anonymous, hackers can easily make millions of dollars from the system.
Although the blockchain is one of the most secure technologies available, hackers are still capable of exploiting loopholes and slipping through the crevices of the system. When the cryptocurrency exchange Binance was hacked in May 2019, the exchange alone suffered a loss of $40 million. Cryptocurrency exchanges account for 54 percent of all cybercrime-related attacks when coupled with attacks on other websites that hackers have targeted.
Selecting crypto exchange software solutions that are well-known for providing a variety of extra security features is the first stage in setting up a crypto exchange. The software is the key to gaining entry through the locked door. But before opening an account in any trading software, you must have knowledge of Bitcoin trading bots.
Below mentioned are certain important factors that one needs to check before choosing a cryptocurrency trading platform. Read on to know further.
- Safety and security factor- Users can put their cash and cryptocurrencies into the wallet of the cryptocurrency exchange. According to the data, most prior exchange hacks occurred due to attacks against wallets. Hackers will never access a secure wallet, no matter how many times the website is hacked. The exchange owner can protect the platform through a registry lock by restricting access to the domain information for specific activities. Hackers will be unable to access the platform by changing the login data or altering the DNS server configuration. This feature must be included in the crypto trading program chosen by the proprietors. According to a poll conducted by ICOrating.com, only 2 percent of existing cryptocurrency exchanges have this functionality. It is, without a doubt, past time to upgrade the software.
- DNSSEC (Domain Name System Security Extension)- DNSSEC is a domain name security extension that protects the domain name itself and the information about the domain name. The legitimacy of DNS data is verified using digital signatures. Signatures using both public-key and private-key cryptography are utilized. Using DNSSEC, users may verify the validity of their data and avoid being tricked into accessing fraudulent websites that steal personal information and get access to the exchange. Researchers revealed that only 10% of cryptocurrency exchanges offer this feature.
- DDoS Security Protocol (Distributed Denial of Service)– Distributed Denial of Service is a sort of distributed denial of service attack that targets many computers. An assault in which users are prevented from accessing a network application is a denial-of-service attack.
Using this method, fraudsters can cause traffic on the exchange to be disrupted by sending a high number of fraudulent and fictitious visitors to the platform to gain control. This can be avoided by incorporating an anti-DDoS module into the crypto platform.
- The WSP (Web Security Protocol)– Internet protocols can be protected in different ways. With HSTS, the same security protocols with HTTPS are also available (Hyper Strict Transport Security). The X-Frame-Options header is responsible for dealing with and preventing click-jacking attacks. The usage of CSP is another way for preventing assaults and risks (Content Security Policy). X-XXX-Protection is a security feature that prevents scripting attacks. The cost of developing a bitcoin exchange does not have to skyrocket to accommodate the integration of these services. Well-known software development companies provide the most cost-effective cryptographic software solutions.
- Hardware Security Modules (Security Modules)– When the platform is connected to a network, the HSM is a plug-in or a physical device that protects it from unauthorized access or use. It is constructed using cryptoprocessor chips and secures the exchange from malicious attacks. It adheres to internal policies and procedures, and it is exclusively responsible for protecting cryptographic information.
Crypto exchanges will continue to be targeted by hackers and cyber-criminals unless they make significant investments in crypto software that incorporates a wide range of security features. The time has come to build a cryptocurrency ecosystem that is both reliable and secure.