Nowadays many of them are aware of digital currency and cryptocurrency exchange. Already many people started to invest their money in cryptocurrencies. Startups and entrepreneurs started to build their own exchange trading platform using the best cryptocurrency exchange software.
Trading and holding cryptos is not an easy task. Because you should know some basics of trading and also about exchange platforms. Security is a more essential part of an exchange platform because without that hacking and theft may happen.
In this blog, we are gonna discuss the security features in the cryptocurrency exchange platform.
Security system for a cryptocurrency exchange platform in 2020:
In the cryptocurrency exchange platform, there will be many traders, startups, and investors who will invest their money for bitcoins, altcoins, and tokens. So a huge amount of money will be available inside the exchange platform. It is also anonymous trading so many attackers targeted cryptocurrencies.
In recent surveys, 54% of exchange trading platforms have security holes. Also, more than $1.7 billion worth of bitcoins and altcoins were stolen by attackers and hackers. Only the implementation of strong security systems in trading platforms can avoid security holes and hack.
Some of the common security systems that can avoid scamming and hacking in exchange trading platform are
- Registry lock
- Two-factor Authentication
- Domain name system security extension
- Anti-DDoS modules
- End to end encrypted transaction
- Multisignature vaults
- Web protocol security
- Biometric authentication
- Cold wallet
Registry Lock is used as additional security to cryptocurrency exchange software. It locks the domain with the registry level. It protects the exchange software from hacking and scamming. it prevents hacking By blocking unauthorized changes or changing the domain. Also, does not allow hackers to change the registration details.
Only 2% of exchange platforms use a registry lock as a security system. If you leverage the registry lock in your exchange software. when you request to change the domain name then it asks for a three-way passphrase check. This three-way check is performed between the domain registrant (you), the registrar (your service provider) and the registry.
So by using this mechanism registry lock provides very high security to cryptocurrency exchange software.
Two-factor Authentication (2FA):
Two-factor Authentication is mostly used in all digital platforms. It acts as a secondary security system in all cutting-edge technologies. Even the latest social media applications use this system for high-end security. In cryptocurrency exchange platforms, it has two-layer of security. Also, only after entering two verification passwords, you can access the transaction.
For password verification, it includes a pin, mobile number, OTP, Gmail verification code, and fingerprint. You can customize your own password in the cryptocurrency exchange software.
It not only provides security to transactions. It also provides additional security for your exchange account in the trading platform. So by adding this security system in your cryptocurrency exchange software, there will be no chance of hacking and third party appearance.
Cold wallets are an offline storage and you can access and monitor your balance without the internet. So you can hold bitcoins, altcoins, and crypto tokens in offline storage. Integrating the cold wallet in cryptocurrency exchange software provides you with additional security. Even Though your exchange is hacked, crypto assets stored in cold wallets can not be stolen by hackers.
These wallets are enabled with the biometric authentication and multi-signature authentication for high security. So cold wallets provide multi-layer security to cryptocurrency exchange software.
It is one of the security features commonly used in most of the exchange platforms. It provides the security to exchange platform vaults. If a trader has to transact any cryptocurrency or token from the wallet. Then it requires multiple security keys to approach the transaction. Without a key, you can not withdraw your money from the wallet. Also, for each transaction and withdrawal, it generates the new alternative key.
So by using the multi-signature vaults in exchange software, there will be no way of cryptocurrency or crypto-token heist in the wallet.
Web protocol security:
Web protocol security provides high security to the exchange platform and avoids the hacking by following methods.
- HTTP Strict Transport Security(HSTS):
It checks whether all the browsing session has HTTP protocols. It is enabled in web protocol security.
- X-frame options:
It prevents your content from being embedded with other websites. It safeguards the cryptocurrency exchange software by avoiding clickjacking attacks.
- X-XXX protection:
This protection prevents exchange platforms from avoiding cross-site scripting attacks.
End to end encrypted transaction:
This security system is mostly used to provide a secure transaction between buyers and sellers. Whenever they process the transaction, from the start to the end it is fully encrypted in the exchange trading platform. So most of the traders, buyers, and sellers prefer this security system for the transaction.
This security system is also used for message transactions in exchange platforms.so nobody can see personal messages between the buyers and sellers. By using this security feature in bitcoin exchange software, you can avoid fraudulent activities.also, you can eliminate the middlemen during the transaction.
Biometric authentication is a commonly used security feature in all platforms like mobile, mobile application, bank payments. This security system is based on single biological characteristics for verification. In the exchange platform, you can keep fingerprint, palm print for the more secure transaction.
So hackers can not heist your cryptocurrency from the wallet. This provides additional security to your exchange trading platform. Also, it reduces your time by entering the pin or password.
Anti-DDoS stands for Anti Denial of Service. it is a tool for detecting the target server or network from the DDoS attacks. by using this security system, you can protect your cryptocurrency exchange software from a large amount of traffic from multiple sources.
Many exchange platforms have been victims of DDoS attacks and made heavy losses. To prevent these attacks we should configure the exchange website firewall to drop incoming ICMP packets and block DNS responses. You can leverage anti-DDOS software in cryptocurrency exchange software for additional security.
Domain name system security extension(DNSSEC):
It is used to authenticate all the domain name system queries. It is the combination of both public keys and digital signature to validate the data. It avoids fraudulent websites and being affected by malicious activities like cache poisoning and pharming.
But DNSSEC can not provide protection to cryptocurrency exchange software from DDoS attacks.
There are many hackers ready to enter through the security holes. We people should keep our exchange trading platform secure with high-level security systems. By using the premium cryptocurrency exchange software you can launch an exchange platform instantly. enable high-end security features to overcome the security holes in exchange trading platforms.