Crypto markets attract millions of investors to get high returns on their investments. But, what if someday hackers attack and stole all your cryptos? The values of cryptos will crash, and sometimes, most of the investors may not receive the crypto value invested by them.
Moreover, these cryptocurrencies are traded exchanges that are run on white label crypto exchange software that needs to possess the highest level of security. The reason being these exchanges have a considerable amount of cash that attracts hackers. For this reason a secured and credible white label cryptocurrency exchange software is a mandate.
Usually exchange solutions lack on password security or cannot foresee the trading pattern of the traders. Like, new research has found that almost 54% of cryptocurrency exchanges have poor security. It means strict security with features like 2FA, PCI Compliant, possessing device and IP analyzers, etc. can only save these exchanges.
Biggest Hacks Related to White Label Crypto Exchange Platform
Many biggest hacks were reported in the past few years and some enormous hacks occurred in the current year. Most of these hacks were related to white label cryptocurrency exchange software. Some of these biggest hacks are as under:
- In June 2019, the UK and Slovenia-based cryptocurrency exchange software GateHub suffered the biggest hack where hackers stole nearly $10 million of Ripple. Here, the culprits got access to white label crypto exchange secret encrypted keys. But, the progress was made to recover the stolen funds.
- In March 2019, CoinBene witnessed its funds being mysteriously moving out of their exchange’s hot wallet. The reported amount was stated to be almost $105 million. Moreover, this white label crypto exchange platform was down for the whole month after this hack.
- Even crypto hacks were carried out in past years too. Like, in September 2018, the Japanese white label crypto exchange software Zaif lost nearly $60 million of cryptocurrency. Even the exchange has reportedly filed a criminal case, so everyone is doubtful that they have an idea of the miscreants.
Although many hackings have taken place but the only thing common was a breach of security at the highest level. So, it is mandatory to focus on tight security too.
What Makes White Label Cryptocurrency Exchange Software Hackable?
The Bitcoin exchange software is said to be secured, but with wider registration of many exchanges, it has become more prone to hacking. A few white label crypto exchange platforms do not have the necessary security measures. So, let us see a few more features that make these exchanges Hackable:
- Many exchanges do not possess enough security to secure their wallet that makes them vulnerable to hacking. As these cryptocurrency exchange software do not have 2FA, so it becomes impossible to maintain high-level security.
- If there is any issue in the protocol or the white label crypto exchange software, then also the hackers can steal the digital cash. Even these exchanges are set on the theme of the centralized setup, so it makes them Hackable too. This way, the traders end up losing their cryptocurrencies.
- Even the weak password and security codes of the white label crypto exchange can lead to security issues. If the traders don’t use strong passwords, then also these exchanges become vulnerable to hackers’ attacks. Even the users also become unaware of any hacking.
Inevitable Security Features of White Label Crypto Exchange
Exchange businesses can save the white label cryptocurrency exchange software from hacking by using modern security features. Some of these security features are:
- Activity Analyzer Usage: With this feature, you can locate the trader’s location, their trading pattern, log out and login time, etc. So, if there is any uncertain login pattern, then this will send an alert to the users.
- Use of 2FA: The two-factor authentication assures that the hackers do not get access to the user’s account even if they possess their credentials. It will support in averting any significant theft.
- White Device Listing: This feature supports listing those devices that can be used for trading. All other devices will get blocked by the exchange. It will keep an eye on any suspicious activity.
- Use of KYC/AML: This will help in identifying the users that have registered with the exchanges. It will assist the exchange businesses not to fall prey to any malicious activities.
- Compliances: The traders must choose the exchanges that are credible and trustworthy. They must select the exchanges that are PCI, SEC, GDPR, and Owasp compliant.
- Using Request Analyzer: This will support in keeping out any doubtful requests. If there is any suspected request, then it is blocked immediately.
The Bitcoin exchange software needs to possess the necessary security. The reason being, it will help the exchange businesses to protect the cryptos of the traders. Moreover, the security features will help in averting losing a considerable amount of money.
People who are into crypto trading must understand that using a strong password and best industry practices will help them safeguard their cryptocurrencies. Even the exchanges must use high-end white label crypto exchanges that will secure their traders’ accounts.