Security Risks — The Most Troubling Issue on Current Cryptocurrency Exchanges
Encrybit — an upcoming Cryptocurrency Exchange is keen to introduce a cutting-edge trading platform for the crypto traders. To take the evolutionary developmental path to the right direction, it is imperative to acknowledge the preferences of crypto traders.
As an upshot, the experts at Encrybit figured out an optimum approach for gathering the views of traders in the quickest way possible. The survey conducted provided a hassle-free source for accumulating the inputs and effortlessly analyze the current situation. In the survey, traders were questioned on the major issue faced, and 40% of the participants’ highlighted “SECURITY.”
Why is Security a greater Risk?
The world looks at the security concern as the primary repellent. Security issues not only repel the traders, but they also snatch away the trust from “what could have been huge” cryptocurrencies.
40% of the respondents say that they slide away from trading due to the security concerns/or the lack of security. Since central exchanges are handled by humans, there is a fear among cryptocurrency traders that their data and assets are not secure over the network. The world has also seen the malicious attacks on several exchanges by hackers and phishers, gulping down all the currencies of users and more importantly their confidence.
How Encrybit looks at it?
The team behind Encrybit is a complete amalgamation of blockchain and cryptocurrency enthusiasts, and they do not want to hate digital assets for the incompetence of the trading platforms. Hence, they are giving in utmost efforts to build the most secure trading platform. It is one of the many trading platforms which eyes to build a secure channel for its users. Centralized exchanges are seldom safe, which have corroborative evidence in the form of hack and law breaching activities. Encrybit is developing a centralized platform which eyes to protect its users from all the kind of security threat.
Encrybit’s Solution to Minimize the Security Risk
The research team and the founders of Encrybit have been active in the field of cryptocurrency for a couple of years. They have tried and tested almost a dozen exchange platforms, and each one had its flaws. This made the sparkle and made them develop an improved exchange which can eradicate the personal flaws to the best possible extent.
The analysis and exploration began two years back to lay down a strong foundation for the exchange. Focusing more on the security aspect, Encrybit will come up with the following solutions:
Security and Blockchain Experts
To create a secure trading channel, Encrybit is building their platforms under the supervision of cybersecurity and blockchain experts.
System Security Infrastructure
The security structure used by Encrybit adds an important accessory in the field of trader-protection.
• Three layered security involves multiple levels of defense that stop rapid infiltration by an interceptor.
• VPN Technology which is known to establish a safe and encrypted connection over a susceptible network.
• Multi-layer firewall magically establishes a filter between trusted and untrusted access. Each subspecies network traffic is scan by predetermined network rules and denied it if the flag is triggered.
• Public access secured for (Distributed Denial of Service) DDOS attack makes sure that the perpetrator is not able to hamper the resources of the host machine.
• Internet overlay network infrastructure spawns layers of network abstraction. These networks can be used to put life into discrete virtualized network layers just on top of the physical network. By doing so, network earns the security benefits.
One of the important requirements of trading platforms is 2FA (Two-factor authentication). 2FA offers an additional layer of security. How does that help? It makes harder for the interceptors to acquire the person’s account or device. Victim’s password won’t be enough to pass the authentication check as the account would demand second authentication passing.
The device which has reached the maximum level of personalization is a mobile phone. With people having constant access to it, they also trade cryptocurrencies through their phones; they store their digital assets in mobile wallets, etc. Since they are in continuous touch with their phones, SMS-OTP pre and post any transaction is a proof that the trading platform asks the access grant of trader’s accounts before making any move. Any mismatch or missing OTP would mean that traders are safe as the transaction would be aborted.
Limit Withdrawal per Users
Limit withdrawal per users is a unique way to stop the hackers from hacking large amount in a single transaction. In the worst case, interceptors won’t be able to transfer the amount which they would have wanted to. Encrybit has pegged the withdrawal limits to the certain value to avoid a massive movement of digital assets.
Withdrawal confirmation by E-mail or SMS
Prevention is better than cure. Encrybit believes in taking necessary precautions to have uptight security on the platform. SMS-OTP before withdrawal and confirmation by email or SMS post-withdrawal. So, in case the previous one is missed, and if any breach has happened, it can be immediately identified in the confirmation message.
Wrapping it up
Security is not only being a major concern for traders active at present but also for the enthusiasts who are willing to trade. They are taking a back seat due to lack of secure environment on prevailing exchanges. We need some strong contenders like Encrybit to eradicate the fear of security threat and make more people join the crypto trading community.