According to the ICO Rating study, just 46% of crypto exchange platforms satisfy the required security standards. On the other hand, the remaining 54 percent, which had inadequate security measures, exposed hundreds of investors and dealers.
This article will take you through the different security concerns that must be taken during cryptocurrency exchange development. We’ll also look at the recommended practices to follow to guarantee that your crypto exchange is as secure as possible.
Security Concerns | Crypto Exchange Platform
- Phishing vulnerability
- Employee login credentials are not well protected
- Protections for hot wallets aren’t present
Also, Read | The Rise of Crypto Derivatives Exchange Development
How to Ensure the Security of Your Crypto Exchange Platform
Create a safe environment
It's vital to prioritize your database, server-side, and client-side technologies. SQL injections are already common and growing across the internet and blockchain sectors. Java snippets that are malicious provide a comparable risk. Third-party programs are the only way to keep track of everything.
Also, Read | Compact Insights into Decentralized P2P Exchange Development
Customers should be educated
Crypto exchange platforms must go above and above in enlightening investors and clients. This may be accomplished by publishing blogs on your website, utilizing social media platforms, delivering instructional newsletters or whitepapers on security issues, and more!
Make sure everything is covered
The purpose of the faults is for developers to discover and fix them, not for hackers to get access through the front door. Poor error handling can generate a plethora of issues by disclosing a lot more information about the exchange’s core operation.
Also, Read | Secure and Efficient Crypto Exchange Development like Binance
Install an SSL certificate
SSL certificates, or Secure Sockets Layer certificates, can help you gain the trust of your customers. An SSL certificate connotes that the user data remains encrypted and safe, and the site is entirely secure.
Consider the concept of cold storage
Cyber-attacks routinely target cryptocurrency stored in online hot storage. Another option is to retain them in cold storage, which includes hardware wallets such as Trezor. The expense is an issue, but if you have the money, you should buy a cold storage wallet!
Also, Read | A Guide to Understanding Hybrid Crypto Exchange Model
Don’t forget about KYC… It is necessary
To sum it up
- While developing an exchange application, security considerations are critical. With so much to worry about, it’s natural that security takes second place.
- Is there anything in this article that we’ve overlooked? Please notify us.
- Have a blockchain project that you need assistance with? Connect with our crypto exchange development experts at Oodles.
- Hire blockchain development company to strengthen security measures in the world of cryptocurrencies.
Read more for in-depth info — Crypto Exchange Platform | Strengthening Security Measures
