Security and privacy are the cornerstones of digital currency exchanges. Concerns about exchange hacks and financial loss are the center of negative PR for most of these platforms. And what users should do is to ensure that their exchange of choice has the best security standards. According to Finaria, over $1.8 billion were lost through crypto exchange hacks between 2019 and 2020. Most of these losses have been linked to cybercriminals using ransomware, phishing, and fraud. From the numbers, it seems significant for one to be aware of the risks associated with digital currencies. And the importance of taking the necessary steps to avoid or combat such threats.
Majed Mohsen built Aurix exchange based on his high expectations of industry-standard security practices. For this reason, the Aurix exchange adheres to high-security standards and ensures transactions are autonomous, safe, and secure.
Why are Crypto Exchanges a target of malicious actors?
Before getting into details about how to choose a safe exchange, I should briefly discuss why cryptocurrency exchanges are mostly the target of malicious actors. Over the years, hacks have become more frequent across these blockchain platforms, and cybercriminals are growing more sophisticated with time. This has caused the industry, lots of financial loss and negative publicity. The primary reason for being the targets is their centralized nature. Exchanges have a central point of failure. And this is a massive cause of vulnerability. It’s common for websites to face hacks and penetration from criminal actors, and it’s even more inviting for criminals to target points where they will have more and immediate financial gains.
Below are the tips to help you ascertain the security of a cryptocurrency exchange.
Tips to follow when choosing a secure crypto exchange
- History – Evaluate the history of a cryptocurrency exchange. Has it faced a severe hack? And if yes, how prompt was the exchange’s response? How significant was the loss? nAd did the exchange compensate its users’ funds? Also, understand what actions the exchange took to make itself more secure and impervious.
- Authentication – What types of user authentication does the exchange have? Has it implemented 2-factor authentication (2FA) ? 2FA is a two-step verification process for users when logging into their accounts. It makes use of either a mobile phone verification by SMS and by email. Additionally, some exchanges integrate their platforms with the google authentication app (Google Auth) for verifying user logins.
- KYC and AML Policies – A good exchange should be well regulated and compliant to Know your Customer and Anti Money Laundering policies. Strict adherence to this means authorities can do follow-ups of any hacks in the future.
- Dedicated Support Team – An exchange requires a responsive, 24/7 active support team. The team should promptly respond to queries as soon as possible, and act accordingly. Always have a look at the FAQ or blog section of the exchange to know what to do if any problem arises, and how to contact the exchange.
Most exchanges are implementing innovative solutions to curb cybercrime and prevent hacks. The combined losses encountered across the industry are huge, and there is a need to avoid all these in the future. Join Aurix. Exchange today and find the ultimate possibility of safety standards for your digital currencies.