Why security aspects are critical in a Cryptocurrency Exchange Software?
More than 5000 different cryptocurrencies are circulating in today’s market. Many companies have accepted the fact that starting a cryptocurrency exchange is a valid business model. Some of the popular exchanges functioning now are Binance, Bitfinex, Poloniex, and Kraken.
Since they are the custodians of the data and funds of millions of users, exchange owners must focus on enhancing their security measures to protect themselves from hacking and phishing attacks. Many centralized exchanges have been hacked in the past and funds have been swindled away from investors without any chances of recovery. One of the high-profile hacks was the Mt.Gox attack in 2014 where a whopping 850,000 Bitcoins were stolen which eventually led to the exchange becoming bankrupt in the future.
Certain steps that crypto exchanges can take to fortify their security includes the adoption of measures like two-factor authentication, SSL encryption, firewall implementation, transport security, password-protected user access, and a captcha. This will minimize the risks of social engineering.
Frequent penetration checks can be done to figure out the vulnerabilities in the exchange as no platform is 100% foolproof. The most common types of attacks on crypto exchanges are social engineering (phishing), DDoS attacks, and injecting malicious code through malware.
You can also organize a bounty program where exciting rewards such as tokens and coins will be distributed to those people who find bugs and security loopholes in your cryptocurrency exchange software.
Acquiring a high-quality white label solution is beneficial not just in terms of cutting costs and time but it also comes free from bugs ensuring no interference with the basic functionalities. It will come in a customized manner once you disclose your business requirements to a well-versed white label solution provider.
Some of the modern security measures that can be undertaken are
The crypto industry is constantly evolving day by day. Update yourself with the latest security trends and practices to protect your digital funds with essential safety precautions.
