The crypto market is always buzzing with activity. The exchanges stay busy with huge amounts of money being traded. Both fiat and cryptocurrency exist on these platforms. With the blockchain being a decentralized version that allows users to be anonymous, it’s easy for hackers to get away with stealing millions.
Despite the blockchain being one of the most secure platforms, hackers are still able to find the loopholes and escape unnoticed. Binance alone suffered a $40 million loss when the exchange was hacked in May 2019. Together with other platforms that suffered from cyberattacks, the overall percentage of attacks on crypto exchanges has touched 54%.
This is an alarming factor not just for exchange owners but also for those who are planning to launch new crypto exchanges in the market. Does it mean that the exchange owners have to resign themselves to being a target?
Definitely not! By taking proper security measures, crypto exchanges can be reinforced to resist hacking attacks and prevent cyber attacks. So how can the exchange platform be protected? The first step is to choose crypto exchange software solutions that are famous for offering an array of additional security features. It is the software that holds the key.
The following are the 6 essential security features every crypto exchange should have to protect the user accounts and facilitate secure trading.
The crypto exchange has a wallet where users can store their fiat and cryptocurrency. Most of the exchange hacks that happened in the past were a result of attacks on the wallets. Thus, every exchange should have a wallet fortified with multi-layer security features, such as biometric and multi-signature authentication, password-protected access, automatic session logout, and more.
Even if the platform gets attacked, a secure wallet will be inaccessible to hackers.
Registry lock enables the exchange owner to secure the platform by locking the domain information on various operations. This prevents hackers from changing the details or modifying the DNS server to gain access to the platform.
Owners will have to choose crypto trading software that offers them this feature. According to a survey by ICOrating.com, only 2% of the existing crypto exchanges have this feature. It sure is high-time to upgrade the software.
Known as DNSSEC, this extension also secures the information about the domain name. It uses digital signatures to authenticate DNS data. The signatures are both public-key and private.
The aim of using DNSSEC is to validate the authenticity of the data and to prevent users from accessing fraudulent websites that could steal confidential information and gain access to the exchange. It was found that not even 10% of the crypto exchanges have this feature.
DDoS is Distributed Denial of Service. It’s an attack where users cannot access the network program. Cybercriminals use this to disturb the traffic to the exchange and instead send a multitude of fake and bogus visitors to take control over the platform. This can be prevented by installing the anti-DDoS module in the crypto platform.
There are various ways to secure web protocols. HSTS (Hyper Strict Transport Security) offers the same security protocols like HTTPS. X-Frame-Options is a header that deals with click-jacking attacks and prevents them. CSP (Content Security Policy) is yet another way to reduce attacks and risks. X-XXX-Protection prevents scripting attacks. The cost to build a cryptocurrency exchange doesn’t have to increase by a large margin to include these features. Well-known software developer companies offer the best crypto software solutions for cost-effective prices.
HSM is a plug-in or a physical device that secures the platform when it is connected to the network. It is made using cryptoprocessor chips and prevents malicious attacks on the exchange. It follows internal rules and has the sole responsibility of securing the cryptographic information.
Unless crypto exchanges invest in crypto software that provides various security features, it’ll be a constant cause of concern as hackers and cybercriminals repeatedly target the platforms. The time has arrived to build a strong and secure crypto ecosystem.
At Antier, we provide white label crypto trading software reinforced with multi-layer security. In addition, we specialize in developing a custom crypto exchange from the ground up.
Schedule a free demo of our white label exchange platform or connect with our subject matter experts to share your needs for a custom exchange built from scratch.
