Crypto investors worldwide are becoming more interested in cryptocurrency exchanges because they can trade many cryptocurrencies and make more money. They also offer liquidity, convenience, and other benefits. Over the years, crypto exchanges have grown and taken on new forms, such as margin trading exchanges, peer-to-peer exchanges, etc., as the number of people who use them and want to buy them has grown. Aside from this, businesses have also become lenders, custodians, etc., to make it easier and more efficient for users to make trades on their platforms.
Even with all this information, some investors still don’t understand how safe a cryptocurrency exchange is. Most of the user’s money is in trust with the crypto exchange. Because of this, the security of the software used by the crypto exchange is the most important thing. Let’s look at the security situation in the crypto space right now.
How security is right now in the crypto sphere cryptocurrency?
Regarding security, there are quite a few problems in the crypto space. A type of technology is needed to store money, keep track of transactions, and get a coin back. This makes the exchange more likely to be hacked or used for other scams. Most businesses have also started supporting mobile apps, which is very helpful but makes it easy for hackers to get in. This means that security systems and transactions need to be made stronger.
To fix these security problems, many entrepreneurs and companies in the crypto space have started using some modern security measures to protect themselves and their businesses. Some people choose a smart wallet, a reliable smart contracts system, hot and cold storage, and many other things. Each choice has its good points and bad points.
Due to the demand and competition, many companies have started offering services to business owners. Such companies have begun adding strong, multi-layered security protocols to the exchange to help entrepreneurs protect their platform and the investors’ interests.
If you want to start your exchange, we’ll talk about the key security features you need to think about in this blog. This will help you build a strong user base, keep them around; and make business safe and easy for both sides. So, let’s figure out what they are.
You should put in place basic security features on your cryptocurrency exchange platform.
Lock the Registry cryptocurrency
A registry lock gives your cryptocurrency; exchange platform an extra layer of security by locking your domain at the registry level. This means that your registrar can’t move your domain to another server on its own. It can make it almost impossible; for a hacker to change or delete parts of the field, like the information about your registration. When you add the registry lock feature to your exchange; you will go through a three-way security passphrase between you (the domain registrant); your service provider (the registrar), and the registry. This protects the security of your cryptocurrency exchange software at the top-level domain level.
Implementing DNSSEC (Domain Name System Security Extensions)
DNSSEC is a set of protocols ensuring that all DNS (Domain Name System) queries are legitimate. It keeps people from making fake DNS data by using public-key cryptography and digital signatures to check and confirm that the data is real. This helps eliminate unauthorized DNS entries and responses and stops users from permitting websites vulnerable to hacking and other nasty things.
A cold wallet is an offline way for users to store and protect their crypto funds. When a cryptocurrency exchange adds a cold wallet to its software, it adds an extra layer of security because even if the business is hacked, the funds in the cold wallet won’t be affected. Most cold wallets have multi-signature and biometric authentication built to protect user access and make the wallet hack-proof.
Security for Web Protocol cryptocurrency
To protect your exchange from cyberattacks, it is very important to ensure the security of the web protocol. To do that, make sure that your business is set up with the following,
HSTS (HTTP- Strict- Transport- Security) ensures that the browning sessions have HTTP protocols.
Protection for X-XXX – Cross-site scripting attacks can’t happen to users because of this protocol.
CSP (Content-Security-Policy) helps lower the risk of XSS attacks and decides which resources can load and which can’t.
X-Frame Options protect your content from click-jacking attacks and keeps it from being embedded in other websites.
Protection against DDoS
DoS attacks usually take down a network or server by flooding it with fake internet traffic to stop it from working well. In the past, this attack has been used against many exchanges, leading to server downtime. To prevent this from happening to your business, you must add anti-DDoS hardware and software modules like network fireballs.
These are the most important security measures you need to put in place for your exchange to keep it from being used for bad things. To make it easy for you, here are the most important security features your cryptocurrency exchange software should have:
- Authentication over HTTPS
- Jail Login
- Encrypted Data
- Anti-Denial of Service (DoS) and DDoS (Distributed Denial of Service) protection for encrypted data
- Protection from Cross-Site Request Forgery (CSRF)
- Server-Side Request Forgery (SSRF)
- Multiple Authentication Factors
- HTTP Parameter Escrow System for Pollution Protection
- Escrow System
Cryptocurrency exchange platform
All of the above security features must be built into your cryptocurrency exchange platform to ensure that the venue and the users’ funds are safe and secure.
Even though cryptocurrency exchanges have been hacked in the past, most entrepreneurs and investors who put money into a crypto exchange have become millionaires. This is why competition and demand are always getting stronger. When millions of dollars move through a business, the exchange’s security should, without a doubt, be given the most attention.
But as technology changes quickly, companies have started giving users more and more robust security features, and the number of hacks and other theft problems is slowly decreasing. To ensure you have a platform like this, you need to do a lot of research and choose the right company that builds cryptocurrency exchange platforms.
Cryptocurrency Exchange Script was one of the first companies to work in this field. It is a dedicated crypto exchange development company with a team of developers, market experts, programmers, analysts, and strategists with hands-on experience that is second to none. We make sure that any size business can use a crypto exchange platform that is safe, stable, and scalable. Get in touch with our experts to learn more about how we can help you build a crypto exchange.
How to be safe with Cryptocurrency
Investing is always risky, but consumer reports and some experts say Cryptocurrency is one of the most difficult ways to put your money to work. But a number of the most popular goods are also digital currencies. CNBC said earlier this year that the value of the cryptocurrency market should reach $1 trillion by the end of 2018. If you want to start investing in cryptocurrencies, the tips below can help you make smart decisions.
Study cryptocurrency exchanges before you put in even one dollar. These platforms let you buy and sell digital currencies, but Bitcoin.com says you can choose from 500 deals. Before you move forward, you should do your research, read reviews, and talk to experienced investors.
Learn how to keep your digital money safe.
If you get Cryptocurrency, you have to store it on an exchange or in a digital “wallet,” like one of the ones we talked about in our blog post about which Cryptocurrency wallet to choose. There are many different kinds of wallets, and each has its advantages, technical needs, and level of security. As with exchanges, you must look into your storage options before investing.
Spread your money around.
Diversification is the key to any good investment plan, which is true when investing in Cryptocurrency. Don’t put all your money in Bitcoin, for example, just because you know that’s what it’s called. There are a lot of choices on the market, and it’s best to spread your investments across different currencies.
Since the cryptocurrency industry is always changing, it’s up to you to protect your digital money by making sure your wallet is safe and secure. Keep up with the latest security news, attack methods, and ways to protect yourself.
You can only pick the best way and start your crypto wallet and other digital assets with seed phrase backups and other wallet setup options and hope that bad things don’t happen. But the easiest way to stay safe in the crypto world is to keep up with news and information about security.