More and more investors are getting interested in cryptocurrency exchanges because of how well the cryptocurrency market is booming. Investors see it as an attractive and lucrative business. However, less than 50% of cryptocurrency exchanges have concrete security features in place.
Security is one of the major concerns of investors in the cryptocurrency market. It isn't easy to trust a cryptocurrency exchange that isn't fortified with high-level security for crypto trading.
What Are Cryptocurrency Exchanges?
Cryptocurrency exchanges are platforms on which you buy Bitcoin Cash and similar cryptocurrencies. Since you cannot buy cryptocurrency from your bank or an investment firm, these platforms exist to make crypto trading possible. You buy and sell cryptocurrency like Bitcoin Cash on these cryptocurrency exchanges. You can also convert your digital coins to fiat currency on exchanges.
There are many types of exchanges in the cryptocurrency market, providing users with a wide range of options to choose from. There is no one best cryptocurrency exchange for everyone; it all depends on what goals you have. So, if you want to buy Bitcoin Cash, Ethereum, or Litecoin, you can choose an exchange that aligns with your goals. With in-depth research on the exchange, you can be sure to find the best one for you.
Security Issues with Cryptocurrency Exchanges
A large majority of exchanges in the cryptocurrency market work pretty much the same way. They run a hot and cold wallet – crypto coins are stored in hot wallets, and most customer funds are stored on the cold wallet. Even the most secure exchange constantly needs to improve its security because it never seems to be enough.
The more attractive a crypto exchange is, the higher the chances of attracting hackers, crackers, and scammers. Security measures put in place by most exchanges do not guarantee the protection of their users' funds; that's why disclaimers are always inserted in their policies.
Unfortunately, vulnerabilities in cryptocurrency exchanges cause a backlash on the blockchain. The blockchain, the technology on which Bitcoin, Bitcoin Cash, and other cryptocurrencies run, is the most secure technology on the planet.
There are some reservations concerning the blockchain, one of which is that it is not as safe as people think it to be. However, breaches recorded in the cryptocurrency market are usually traced back to exchanges, not the blockchain itself.
Login Security Features on Cryptocurrency Exchanges
Login security features cryptocurrency exchanges put in place to ensure secure transactions include:
A secure cryptocurrency exchange requires an email ID for registration and log-in instead of a username. Email is not only safer, but it is also easier to remember. Usernames would usually contain numbers and letters that are easy to forget.
On the other hand, an email ID sends the user a PIN with which the user is granted access to his crypto wallet. Exchanges that use email ID always inform customers to keep their mails safe to prevent third-party access.
Mobile number and OTP
When it comes to cryptocurrency, you cannot be too careful with passwords. You want to choose a complex password that no one can guess. At the same time, you don't want to complicate things for yourself.
Cryptocurrency exchanges have the option of logging in or registering with a secure, one-time password (OTP). With only their mobile number and the OTP, users can register or log in to their wallet to trade digital coins such as Bitcoin, Bitcoin Cash. To access your account from a new device, you will have to enter the OTP sent to the number registered with the exchange platform.
Instances happen where users forget their password, especially if it's been a while since they logged in. As such, exchanges provided a password reset feature. With this, users can securely reset their password either through their email address or sign-in screen.
A validation process to verify the authenticity of the user is always required to complete the password reset. That way, nobody can reset your crypto exchange password without your permission.
This is the most common login security feature across many cryptocurrency exchanges. It adds an extra layer of security to the crypto exchange platform, making it difficult for hackers and crackers to access the wallet of crypto users.
An OTP is sent to the user's mobile phone, and apps like Google authenticator are used to verify their authenticity.
Some exchanges give users the option of viewing their password as they type if they desire. This helps users remember complex passwords that are usually a mix of alphabets, numbers, and special characters. However, users are not encouraged to use this option in places where others can view their devices as they type for security.
Trading on secure exchanges lets you buy Bitcoin Cash, Bitcoin, or any other cryptocurrency of your choice without fear of losing your investment. However, to tighten security, several crypto exchange platforms keep introducing new security measures and features.
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