7 Essential Security Features of a Cryptocurrency Exchange6 min read

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So far, we have heard a lot of news about the hacking and waste of many people’s funds in digital currency exchanges (large or small), each of which could be used by using a series of options and features in the platform. Prevent this catastrophe.

For example

the MtGox exchange, which lost 850,000 bitcoins, gained popularity when it was new.
Or the CoinCheck exchange, which lost 523 million NEM tokens.
In the following, we will introduce and review seven security features that you can implement on your cryptocurrency exchange to minimize the possibility of risk.

it’s better to consider all Security Features of a Cryptocurrency Exchange to prevent the upcoming risks.

Just read case one to the end and see how much it can contribute to the security of your exchange.

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1. Cold wallet integration- 60% more security by adding this simple feature

What do wallets do, and what are they made for? Digital wallets have only one purpose, and that is to receive, send or store digital currencies. It can be said that without these works, it is practically impossible to make a transaction with the currency code.

Here, two types of Cryptocurrency wallets are introduced and used, each of which has advantages and disadvantages, which are called hot and cold.
Hot wallets do encryption only through the Internet and online, and users’ assets are stored online. But the same thing causes cyber hackers to attack online wallets and expose their holdings to theft and theft.
But cold wallets have solved this problem to some extent. Because these encryptions are no longer done online, users of these wallets can also access their assets offline. Using cool wallets as a security feature in digital currency exchanges can significantly ensure the security of users because they can no longer be tracked and stolen by hackers.
Another attractive feature that cool wallets can have is Biometric Authentication and Multi-Signature Authentication, which greatly enhance the security of these wallets.

Using the cool wallet integration feature in digital currency exchanges can increase user security by up to 60%.

But That’s not all :

Join us to review six other security features that can help you achieve maximum security.

2. Registry lock

Registry lock is usually used as a very effective security layer in digital exchanges. This helps to lock the domain at the registry level, and the domain owner can lock the domain information. This option prevents various operations that may occur on the domain of the sites. These include changing content, DNS server, transferring security, or deleting a domain name. Registry Lock will protect your exchange from any changes to your domain. Also, by activating the registry lock, no one can check or change your information.

Twenty-two percent of domain names tracked in Forbes’ list of the World’s Largest Public Companies have secured registry locks.

When you request a domain name change, it then requests three-way passphrases. This three-way review is done entirely between the domain registrar (you), the registrar (your service provider), and the registry.

 

3. Data encryption

In a blockchain network, data and information are completely encrypted according to a specific algorithm. Using this feature in your exchange makes it virtually impossible for hackers to decrypt this blockchain network.
This eliminates the need to use other names or details in the transaction and uses only public and private keys and digital signatures.
This type of secure transaction can only be done for p2p or peer-to-peer currency exchange exchanges.
This feature will be handy if you also want to set up a decentralized currency exchange.

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4. Anti-DDoS Modules

The term Anti-DDoS stands for Anti Distributed Denial of Service. Today, DDoS attacks are more common in currency exchanges.
These attacks temporarily disable the exchange service. This Anti-DDoS feature was introduced to overcome these attacks on exchanges for greater security of their platform.
This deterrent and protection system acts as a tool that detects the target server. You can also protect your exchange from a large number of users from different places.
Many digital currency exchanges have usually been the victims of these attacks and have suffered many losses. We need to increase the encryption exchange firewall to release incoming ICMP packets and block DNS responses from other networks to prevent DDOS attacks. For added security, you can add an anti-DDOS module to your cryptocurrency exchange.

Okay
So far, we’ve covered 4 of the most critical security features we can add to our cryptocurrency exchange.
Let’s see what the next three are

Next is my favorite!

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5. Biometric authentication

This security feature, which has found many fans today, is used in many mobile applications such as apps for banks, etc., which has a significant impact on the security of these platforms.
This option helps your cryptocurrency exchange have only the necessary logins. Only someone whose biometric information is registered in the system can log in to the exchange software.
Biometric authentication also enhances the user experience for your users because everyone hates remembering the hard and strange passwords they have set for their account and prefers to quickly log in to their account with a fingerprint or face recognition.

just like the best financial apps, we provide biometric verification in our binance clone app.

 

6. Web Protocol Security

Web protocols are more vulnerable to cyber-attacks. You should check to see if you have the following in your web protocol. Also, only 29% of cryptocurrencies do not have this feature.
Secure HTTP Transfer Security (HSTS) This title explains whether the entire sentence is browsing HTTP protocols.
X Framework Options This option protects your trusted content from linking to other websites. Maintains cryptocurrency exchange by avoiding clickjacking attacks.
X-wire protection protects your exchange platform against text attacks on the website.
The Content Security Policy (CSP) determines which dynamic resources are allowed to load. It also avoids the risk of an XSS attack.

7. Two-factor authentication

Two-factor identity is primarily enabled in all digital-based operating systems. This feature acts as a secondary security system on most cryptocurrency trading platforms. Even mass media websites, Gmail, and other platforms use this feature for a high level of security. Instead, it has two layers of protection. Only after entering two passwords can you access credits or transactions.
Password verification includes a pin code, mobile number, OTP, mail verification code, or fingerprint. You can customize your password to your liking on the cryptocurrency exchange platform. 2 FA only secures your user transactions. It also provides additional protection for the user exchange account on the trading platform. So by integrating this security feature into your stock market. Then cyber-attackers don’t have any chance, and the appearance of a third party will be gone. This feature provides better security for your encryption and encryption transactions.

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