With the Bitcoin and cryptocurrency prices soaring, investors are keen to invest in digital currencies. The exponential growth of the crypto market means bigger volumes of crypto. It translates to greater responsibilities for the cryptocurrency exchange developers. It also means that the cryptocurrency exchange software development company must focus on incorporating better security features to prevent malicious attacks.
As new information regarding hacks and leaks of private data from cryptocurrency exchanges emerges, investors need to feel safe to use the platform. Since cybercriminals exist in the online space and may never go away, cryptocurrency exchanges must take precautions. The security steps must never solely rest on the crypto exchange alone.
As an investor, you must also take responsibility to keep your digital assets safe. Here are some of the tips to make crypto exchange application solution secure even when money flows:
Passwords provide good protection until hackers break them. But, having a two-factor authentication within the crypto space makes it more secure. While choosing a password, avoid simple and easy ones that you use for all devices. Use a strong and complex password containing special symbols that become difficult to guess. Also, change the password on a regular basis.
Apart from the user opted password, multi-factor authentication provides a second layer of security. It enhances the protection while the investor logs in or withdraws funds from the platform. The two-factor authentication may take the form of a text message arriving in an email or phone.
Look For Cold Wallet Storage
Hackers target crypto exchanges with a hot wallet. It means the coin remains available online. So, it makes it easier for investors to use it anytime they wish. It also makes the exchange vulnerable to cyber-attacks by hackers. Instead, exchanges can store their private keys offline on a device. It is known as cold storage.
Prevent Mobile Phishing
People using a cryptocurrency exchange also use a mobile app for the exchange to manage the wallet with ease. As the cryptocurrency prices skyrocket, malicious hackers try to steal the login credential using phishing campaigns. Phishing scams by hackers involve the use of emails and malicious advertisements. Such emails and ads may contain links. Clicking on these links can lead to the loss of personal data. Hence, you need to remain careful while completing crypto transactions. Always avoid any unknown or suspicious links.
To prevent such instances, you need to keep the device used for trading safely with firewalls and anti-virus software. It keeps the device up-to-date with the latest virus definitions to defend against any vulnerabilities. Anti-virus software and firewalls can provide security to the laptop or computer that will prevent the hackers from taking advantage of the weakness that hackers can target. Like you protect your computer using antivirus software, consider installing antivirus software on your tablets and smartphones to keep the data secure in these devices.
It is one of the security features that can inform the account holder of any malicious activities. If the hacker tries to move the digital assets, the notification can inform the investors on time. Sending notification during withdrawing and depositing can help the customers become aware of any inappropriate happenings in the account.
Use Secure Internet
Like the exchange takes security measures to keep its platform safe, you must also take steps to ensure the safety of your digital currencies. Make sure you use a secure internet connection while trading or completing crypto transactions. It is better to avoid public Wi-Fi networks as it increases the chances of your private data getting leaked. While using your home network, make sure you use a Virtual Private Network (VPN) for additional security. VPN can hide your IP address and location. Hence, it can keep the browsing activities on your computer or laptop safe from threats.
Block Withdrawal After Data Change
Changing account data seems like one of the common approaches used by hackers to gain your digital assets. Hackers can change the email address or the phone number provided to get easy access to the account. By changing the data, the attacker can approve any possible withdrawal by the hacker as they have control over the email or phone. After the change of account settings happens, you can take the step to block withdrawals for several days to a week to prevent loss of assets. It prevents the malicious behaviour of hackers.
Crypto Exchange Security Audits
The crypto exchange must think about security audits. The periodic audit can help the crypto exchange in two ways. The first is that the audit may reveal any weak points in the security of the exchange. Such periodic audits can also help build trust in the minds of the investors. It also ensures legal certainty. Security audits can also play a vital role in many jurisdictions to meet the necessary regulatory frameworks. Security audits can also reduce the possibility of money laundering or money fraud to ensure the exchange gets more credibility.
Customer Insurance Funds
Fund insurance can secure the digital assets stored on the crypto exchange. The exchange can seek insurance by involving an external insurance company and have the funds backed by the internal regulation or policy. In this way, the crypto exchange can cover the losses in case the assets get stolen or lost. Covering the loss faced by the customers can prevent the ending of the business.
Cryptocurrency exchange seems like a prosperous one with the rising prices of cryptocurrencies. But it does not mean it has no risks. Security concerns can make it harder for the investors to trust the exchange. An exchange with increased chances of getting hacked can go out of business. A hacking attack can change the tide of the crypto exchange from good to worse.
Before deciding on choosing the cryptocurrency exchange, research the platform well. It is essential to understand the features implemented by the crypto exchange to understand the level of security they offer for the data. Incorporating best security practices such as SSL/TLS encryption, multi-factor authentication, and cold storage may seem like the perfect methods to keep the platform safe from external threats.