The Ideal Security Parameters To Look Forward To

Blockchain technology is considered as one of the most secure and transparent technology. The cryptocurrencies are created on the blockchain platform. So it is very difficult to tamper with the security concerning crypto.

The crypto transactions are protected via a 2-factor authentication process. In this process, you have to enter the ID and password as well as the security code.

All these factors make crypto trading safe and secure. However, the reality is far from it. Cryptocurrencies are prone to security concerns. In recent years hackers have taken advantage of many vulnerabilities of crypto trading platforms and wallets.

Moreover, $534 million was hacked by Coincheck. $195 million was hacked from BitGrail. More than 31 crypto exchanges have been hacked till now. Also, more than $1.3 billion was stolen by hackers alone. More than 54% of exchanges have security vulnerabilities.

Hackers take advantage of these vulnerabilities to infiltrate the exchanges and steal the funds. Also, many traders don’t take enough security measures to protect their funds. So, think twice before you consider cryptocurrencies safe.

If you want to trade in cryptocurrencies, you need to look forward to the security parameters. In this post, we will show you want all security parameters you need to look forward to while trading crypto. But before that, let’s check about all the hacking attacks hackers use to steal crypto from exchanges and wallets.

Crypto Trading: Hacking Attacks and Security Issues

Here is a list of the hacking attacks used by hackers and some other security issues concerning crypto.

· Malware: It is a virus that one enters into someone’s device can give away all the sensitive information. Crypto transactions cannot be reversed. You can lose your money forever.

· Riskware: This malware gives the hackers processing power to mine cryptocurrency.

· Illegal exchanges: There are many fake exchanges involved in stealing crypto from traders and investors.

· Fake Wallets: Like fake exchanges, there are fake wallets. Once you store your crypto in the wallet, it will be stolen.

· Crypto phishing: It is also known as email scams. Hackers will send you an email with al link to their site. This site looks similar to legitimate sites. When you enter your details, they will receive it.

· Exchange Security: More than 54% of exchanges have poor security. Mt.Gox, a centralized trading platform, was hacked twice, and many other exchanges lost their funds.

· Cryptojacking: In this attack, hackers try to use mobile phones. They use the processing power. Because of this phone becomes slow.

· Social Media scams: Hackers use social media to find out who deals with a huge amount of crypto. They use this information to steal their money.

· DDoS attacks: It is a cyber-attack. In this attack, hackers disrupt the exchange services. Because of these exchanges face downtime. The traders become averse and trade their crypto at a low price. The hacker buys these cryptos to make a profit.

· 51% Attack: This attack is made by miners. When the miners have more than 50 % power, they can manipulate transactions. It is another concern for crypto traders.

· aIR-Jumper attack: This attack is used to steal sensitive information using CCTV cameras.

· USBee attack: This attack is used to steal data using USB.

· DiskFiltration attack: This attack is used to steal data using a hard disk drive.

· BitWhisper: This attack uses heat exchange to get passwords and keys between two computers.

· AirHopper: This attack is used to record keystrokes made on the computer.

· Fansmitter: This attack uses the fan’s noise to record data.

· PowerHammer: This attack uses malware to get data.

· GSMem attack: This attack uses cellular frequency.

Security Parameters You Need To Look Forward To

Now that you are aware of all the scams, frauds, and security concerns related to crypto, it is time to learn about the security parameters. If you want to save you crypto funds from hackers, make sure you check all these security parameters when dealing with crypto.

Trusted Exchanges

Hackers normally target exchanges. So you need to research the exchanges before you trade via them. There are more than 500 exchange platforms to choose from. Don’t choose a fraud exchange platform. Choose a reputed exchange to trade your cryptocurrency. You can either choose centralized exchanges or decentralized exchanges.

· Centralized crypto exchanges: Here, the exchange is managed by a third party.

· Privacy: There is a low level of privacy. The privacy is limited, and chances of theft are higher.

· Hacking Attacks: It is more prone to hacking attacks. More than 30 exchanges were hacked.

· Security Risk: High risk of infrastructure shutdown.

· Decentralized exchanges: Here, there is no third party involved. It is operated through blockchain and smart contracts.

· Privacy: The level of privacy is very high. There is a low level of threat.

· Hacking Attacks: There is a low risk of hacking as nodes are distributed.

· Security Risk: There is no risk of infrastructure shut down as it is hosted through distributed nodes.

Decentralized exchange security

Although decentralized exchanges are considered safe, there have been few hacking incidents. So make sure these methods are used by your White label cryptocurrency exchange platform to prevent a hacking attack.

· Analyzing User’s Activities: A monitoring system should be used to monitor the users’ activities.

· Best Industry Practices: They should be SEC, PCI, GDPR, and Oswap compliant.

· White List Devices: Only white listed devices should be used for trading.

· IP Profiling: Limited data should be transferred to uses to prevent overloading.

· Encrypt: The user request should be encrypted. No one can read the personal data this way.

· 2FA: Helps to protect the user’s account from hackers.

Exchange Security

Exchange security is very important. If your exchange is not secure enough, there are chances of losing money. Exchanges take measures to enhance security. Make sure the exchange you choose is secure. Make sure your exchange provides all these security features.

· Registry Lock: It is an extra layer of security provided by exchanges. Here the domain is locked. The hackers cannot change anything related to the exchange’s domain. With registry lock, hackers cannot change the registration details as it goes through 3 passphrase security.

· Domain Name System Security Extension: With these sets of protocols, DNS is protected. Public keys and digital signatures are used to make sure the data is safe. All illegal DNS entries are automatically rejected.

· Anti-DDoS Modules: It helps to prevent any DDoS attacks. The DNS responses from any other network are blocked. It can be used as a network firewall to prevent attacks.

· Web protocol Security: Most of the hacking is doe to web protocols because they are very vulnerable. These security parameters should be used by exchanges to prevent hackers from entering the system.

· HTTP Strict Transport Security: HTTPS protocols are used for browsing.

· X-Frame Options: Protects from click jacking attack.

· Content Security Policy: Prevents XSS attacks.

· X-XXX Protection: Prevents cross-site scripting problems.

· Cold Wallet: It is an offline wallet. Here the wallet is not connected to the internet, so the hacking chances are pretty slim. Many exchanges store most of the funds in cold wallets.

Wallet Security

As all the funds are stored in a wallet, wallet security is very important. If users don’t take precautions with the security of your wallet, your wallet will be hacked.

· Trusted Wallet: Choose a trusted wallet. Do go for a new wallet or frau wallet. Always choose popular wallets that have been in the market for a long time.

· Cold Wallet-Hot Wallet: Store most of your funds in a cold wallet. They are safe from hackers. Hot wallets are more prone to hacking as they are directly connected with the internet.

· 2-factor Authentication: Make sure your wallet is protected, using two-factor authentication. So even if the hacker has your credentials, they won’t be able to access your wallet as they need a code to unlock it.

· Strong Password: Strong passwords helps to maintain the safety and security of the wallet. You should not share your password with anyone.

· Different types of wallet: Don’t put all your crypto in one wallet. Explore different types of wallets and diversify your funds. It helps to prevent total loss of funds.

· Mobile Wallet: Avoid carrying too many funds in mobile wallets. Mobile wallets are more likely to be hacked. Complete the KYC and AML process to use the wallet service.

· Authorized Device: Only use the authorized device to trade and use your wallet. Don’t access it by any other device. It may lead to hacking.

· Encrypt: Encrypt al you data so that no one can read it. It will help to prevent the leak of data and hacking scams.

These are the security parameters you need to look forward to while trading in cryptocurrency. Exchange security, as well as wallet security, is very important. White label crypto exchange software development includes most of the security features we have discussed above. Apart from choosing a trusted exchange, you need to take some precautions while trading, such as using trusted devices, encrypting the data, and choosing strong passwords. If all these security parameters are followed correctly, you can enjoy safe crypto trading.