Reports show that one-half of the crypto-exchanges in the world are prone to attacks!
What is a crypto exchange?
A Crypto Exchange is a platform which allows you to trade cryptocurrencies for other assets, such as other digital currencies or fiat money. An exchange can send money directly to your crypto wallet. Some exchanges can convert your digital balance into prepaid cards. These cards can then be used to withdraw money from ATMs globally; other digital currencies are backed by precious metals like gold.
There is no doubt that cryptocurrency and blockchain technology is gain
ing a lot of attention. They have attracted a lot of investors. An issue that continues to bother the public, is the way cert
ain crypto exchanges operate. The issues are mostly related to security. ICO rating performed an extensive research and concluded that certain exchanges have no security measures to combat hacking attacks.
How Secure are Crypto Exchanges?
According to the report by ICC ratings, over half of the exchanges operating are not prepared for a breach. Certain Exchanges are wide open to attacks and possibly loss of the customer’s confidential data. For example, the exchanges are allowing passwords with no alphanumeric input which is not secure. Certain exchanges are also allowing users to register without verifying their email addresses.
The analysis of the attacks shows that the hacks are successful because of the lack of security measures. A Japanese Crypto Exchange, Zaif was recently hacked and is said to have lost $59 million worth cryptos. Bitcoin, Bitcoin Cash, Monacoin are among the popular cryptos stolen.
The Weak Spots
The study reveals that out of 100 exchanges, only 4% of the exchanges have a stable security system. The main security issues include:
- Failure to implement 2- factor authentication.
- Allowing use of short, insecure passwords.
- Allowing non-alphanumeric passwords.
- No email verification
- Allowing use of non-traceable email addresses.
The other flaws include how the data processes and the codes run. One-third of the exchanges have issues running their CSS code and javascript on their pages which could lead to loss of the user’s data particularly in the middle of a transaction. The report says that only 2% of the exchanges have a secure domain, the rest are vulnerable to attacks. Only 10% of the exchanges use the DNSSEC protocol that guards the DNS attacks.
The report lists some major exchanges in their report which is a big concern for the Exchanges. Binance is a popular crypto exchange and is ranked among the finest, but is listed on the 17 positions of the secure list. CoinBase tops the list of the most secured exchange followed by Kraken and BitMex.
PCEX is a new crypto-exchange offering multi-layered security. In fact, not only does the platform follow a Clark-Wilson model of security architecture, PCEX also employs a broker channel for additional safety. All users have to go through sub-brokers in order to trade on the exchange, filtering out users with illegal intents.
Conclusion :
Choosing an exchange can always be a difficult task. Always do your research about the exchange you want to trade on. Make sure your money, as well as your personal data, is secure. Happy Trading!
